“Rtveli 2020” – a traditional vintage and rural harvest holiday in Georgia accompanied by feasts, musical events and other celebrations started on August 26. This year, the Government of Georgia (GoG) is subsidizing the grape harvest to support growers in selling their products. 0.3 GEL of the total 0.8 GEL per kg of Rkatsiteli or Kakhuri Mtsvane is subsidized. In the case of extreme necessity, the GoG will be involved in the purchase of grapes as well. Supporting the wine sector is part of the anti-crisis plan to handle the economic challenges caused by...
ISET Economist Blog
A blog about economics in the South Caucasus.
Oct
12
Jun
30
On 28 May, Georgia announced its fourth anti-crisis plan, in which the government will subsidize 4 per cent of the interest rate of mortgage loans for five years. The subsidy will be issued for loans not exceeding 200,000 GEL and will only apply to those taking mortgages for the purchase of residential apartments that are newly built or under construction, from 1 June 2020 to 1 January 2021. The state will also ensure the completion of ongoing construction.
Moreover, the state will issue loan guarantees on mortgages to the amount of 20 per cent of their ...
Jun
24
BACKGROUND
Agricultural production is associated with a variety of risks, including market, institutional, and production risks. An important production factor in agriculture is the weather. Its uncontrollable nature makes weather risk the prevailing risk to agricultural production. Farmers have various informal and formal means of transferring and mitigating these risks. Informal means include savings, diversification, off-farm activities, etc. The most common formal means of risk mitigation is insurance. Insurance is a contract that transfers th...
Apr
26
Various business support programs have been implemented in many countries across the world. Grants, interest-rate subsidies, and equity participation are among some of the most adopted tools for promoting firms’ performances (Dupont and Martin, 2006). Such assistance programs also have their own objectives. For example, low-interest rate loans and cash transfers to new and small firms are designed to overcome the financial constraints many firms face (Hubbard, 1998). Moreover, these programs may aim to help firms adopt new technologies (Bronzini and Pise...
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