On December23 at the National Bank of Georgia an agreement of cooperation was formed between the Ministry of Finance and commercial banks in Georgia. The minister of Georgia for Finance Mr. Kakha Baindurashvili and managers of the commercial banks signed an agreement aiming at improving access to bank credits and incentivizing honest taxpayers with the view of encouraging economic development of the country and an increase in credit activity. 

According to the agreement the ministry of finance will regularly provide the commercial banks with the complete tax history of honest taxpayers on their fulfilled liabilities. 

The commercial banks, on their own, express their readiness to provide simplified and preferential credits to the enterprises, take the payers’ tax history into consideration and allocate financing for their business ideas as much as possible.

“ The initiative today has two major goals in mind: firstly, improving access to bank credit for small and medium sized businesses and, secondly, stimulating honest taxpayers, so that they are able to develop their businesses rapidly. Honest taxpayers bear small risks for the banks and the banks therefore are better motivated to partner them in different projects” , - The president of the National Bank of Georgia Giorgi Kadagidze Stated. 

According to him, the major part of Georgian economy is represented by the banks. The assets of the banking sector for the 11 months of the current year have reached the record figure of 10 billion GEL. “It is of great importance that the sum of the money is fed back into the Georgian economy by means of credits to businesses in agricultural, touristic and other priority sectors,” – the President of the National Bank said.

“For us it is of importance that in line with the government the banking sector is becoming actively involved in financing business. The agreement will help any honest taxpayer to get credit quickly and easily in order to develop its business, on the one hand, and  will assist the banks to invest money in reliable business projects, on the other,” – Kakha Baindurashvili, the Minister of Finance of Georgia explained.

Both parties stated that the agreement is a proof once again how the government and the banking sector cooperate to establish healthy business environment.