The study examines challenges to Georgia’s economic and democratic development that accompany growing presence of Russian business ownership in the country; and seeks to heighten awareness among key stakeholders (i.e. government, civil society organizations, development partners) and the Georgian public regarding the associated risks and threats.
Prior to the current Insolvency Reform, Georgia’s legislative framework regulating insolvency proceedings fell short of meeting international standards – it did not meet neither creditors’ nor debtors’ needs and failed to offer incentives to the insolvent companies to choose rehabilitation as their optimal strategy for resolving financial difficulties.
Georgia’s new insolvency law – the Law of Georgia on rehabilitation and the collective satisfaction of creditors’ claims – became effective on 1 April 2021. Under which, if a business operating in Georgia has reached a low ebb and is no longer able to meet its financial obligations, it has the opportunity to regulate relations with creditors based on new legislative instruments – effectively, it is able to rehabilitate and return to the market in a viable manner, or, if necessary, it might declare bankruptcy and exit the market.
For the first quarter of 2023, business confidence in Georgia increased (by 8.4 index points) and reached 20.1. The highest business confidence is observed in the financial (35.6) sector.
On 21 November, Davit Keshelava, deputy practice lead of ISET Policy Institute’s Macroeconomic Policy Research Center (MPRC), took part in a Georgian-Austrian Business Forum that was organized by Advantage Austria Tbilisi (while acting as part of the Trade Mission in Georgia and Azerbaijan).