2018-03-19
"It is very exciting that 300 million USD will be invested in such strategically important areas of the country as tourism, energy, and real estate. It is commendable that a non-state non-financial Georgian company places Eurobonds for the first time and attracts 300 million USD," Georgian Prime Minister Giorgi Kvirikashvili stated at today's presentation of Georgian Capital's investment plans.
Georgian Capital, BGEO Group's investment business holding company, plans to invest a total of 500 million USD in Georgia over the next few years, of which 300 million USD worth of Eurobonds were placed by the company in the Irish Stock Exchange.
The attracted funds will be invested by Georgian Capital in Georgian companies working in different industries.
The Head of Government, in his speech at the presentation, emphasized the exceptional growth in FDIs in 2017, pointing out that the model of economic development implemented by the Government of Georgia has proved a success, as evidenced by the recent data reported by the National Statistics Office.
"The information on the growth of FDIs, which was made publicly available two days ago, is crucially important to investors, and the success of Georgian Capital reaffirm that we are on the right track bettering our business environment. A 16.2% growth in FDIs, equally ng 1.862 billion USD, is impressive, indeed.
Especially rewarding is the fact that reinvestments have grown by more than 130%, amounting to 712 million USD, which is the amount reinvested in the country by businesses. This amount would have been channeled abroad had it not been for two things: One is growing economy, with its 4.8% economic growth, and the other is the profit tax reform. All this is interrelated, of course. It was a vitally important decision, and this reform has been implemented successfully since January 1, 2017. I am convinced that it will bring about equally positive results in 2018 and beyond," the Prime Minister stated.
According to Giorgi Kvirikashvili, the dynamics of the country's economic development are very high, which will ultimately reflect in the social conditions of ordinary citizens.
"Economic dynamics are very good. We have a significant tourism growth which is beneficial for business and, most importantly, we have the spillover effect of these 300 million USD to encompass small and medium-sized business growth, which will reflect best in the everyday lives of our population, ordinary citizens, businessmen, small entrepreneurs, rural residents who are not large businessmen. It is the effect we need most," the Prime Minister of Georgia said.
Today, the Head of Government also announced the second phase of advancing the development of small businesses.
"We plan a second wave of small business development, capital assistance not only for startups but small and medium-sizes businesses as well. We already have concrete ideas in this direction, and the Government's economic team is working on this issue, and I am convinced that the effect triggered by the inflow of 300 million USD will have a direct impact on a number of areas, be they entrepreneurship, agriculture, transport, communications, or others.
Thus, we have a very positive chain reaction here, and it is the chain reaction poised to turn our country into the most dynamic state in the region. We certainly have the potential to host not only capital but also education, science, culture, all of which will ultimately have a very positive impact on our citizens," Giorgi Kvirikashvili underscored and wished Georgian Capital success in its future endeavors.
Today, Giorgi Kvirikashvili also introduced the audience to the fact the Fitch rating agency advanced Georgia's outlook from stable to positive.
"As you know, the Moody's international rating agency recently advanced Georgia's raking from Ba3 to Ba2. Quite recently, it became known that the Fitch international rating agency has advanced Georgia's outlook from stable to positive. Thus, international rating agencies also confirm what we say here," the Prime Minister said.
Prime Minister's Press Office