The International Finance Corporation of the World Bank published results of the research conducted by "Doing Business 2008". The profile of this organization is to publish to the attention of the businessmen a list of the countries most favorable for launching their activities; this year, Georgia has occupied the 18th place in the mentioned list. It is notable that according to the results of the research undertaken last year Georgia was granted the 37th place and the year before, our country was ranking as the 112th.
This year, the research associates of the international finance corporation focused mostly on the following spheres:
1. Starting a Business;
2. Dealing with Licenses;
3. Employing Workers;
4. Registering Property;
5. Getting Credit;
6. Protecting Investors;
7. Paying Taxes;
8. Trading Across Borders;
9. Enforcing Contracts;
10. Closing a Business.
While commenting on this issue, the Prime Minister of Georgia Zurab Noghaideli stated that in the course of the last three years Georgia has managed to occupy a due place among the leader countries. It is of paramount importance that we have fulfilled our promise of the previous year: we said we would be among the best of 25 and eventually we ended up with the 18th place or in other words, we are ranking among the best 20 countries and this is very important indeed.
It should also be noted, that Georgia is still a leader in the reforms accomplished this year and it is mainly due to the reforms undertaken in two directions: in licensing sphere and in the sphere of protection of the investors. According to the report mentioned above, the reform on protection of the investors was nominated as the leading one among the three significant reforms.
Let us consider the sequences of this. It is already well known that the rate of economic growth amounts to 12.5% in the first half of the year and to our estimations, by the end of the year the 14-15% growth is expected which will bring about creation of 90 000 jobs in Georgia's economy. Accordingly, it will cause a greater investment flow in Georgia and yet more jobs will be offered. This is exactly what the public is demanding and requesting from the government.
Zurab Noghaideli stated that after such grades as well as under the grades granted by various rating institutions (this year, Georgia was granted the BB credit rates), the amount of loans taken abroad by the Georgian investment structures, banks and other financial institutions has increased whereas the interest rates have decreased. Accordingly, the loans delivered by them will also increase and the interest rates will decrease. Perhaps for the time being, it's not appropriate to speak about accurate figures because in each concrete case, it's the result of a deal made between a financial institution (the bank) and the client. During recent years the interest rate has considerably decreased, or a couple of years ago it amounted to 24-28%, whereas now, it equals already to 20%; in addition, there exist 15% and 12% loans as well.
The given research study proves that rather serious reforms have been undertaken for the benefit of small-scale businesses. We are simplifying all spheres of conducting business; the procedures of conducting business must be simple to the utmost in all spheres of business activities, especially for small-scale and medium scale businesses and accordingly, we already have results of this. This year, many enterprises have been created in Georgia, particularly in small and medium level businesses and therefore, among 90 000 people who are going to be employed this year in Georgian economy, more than a half of them are representatives just of small and medium businesses.
The press center of the Chancellery of the Government of Georgia