ISJ Theoretical & Applied Science



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Editorial Board       p-ISSN 2308-4944 (print)       e-ISSN 2409-0085 (online)
SOI: 1.1/TAS         DOI: 10.15863/TAS

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ISJ Theoretical & Applied Science 03(71) 2019

Philadelphia, USA

* Scientific Article * Impact Factor 6.630

Keshelashvili, G.

Foreign experience of credit system management and its challenges in Georgia.

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Language: English

Citation: Keshelashvili, G. (2019). Foreign experience of credit system management and its challenges in Georgia. ISJ Theoretical & Applied Science, 03 (71), 88-92. Soi: Doi:

Pages: 88-92

Published: 30.03.2019

Abstract: World experience showed that without formation of the modern effective system for providing agrarian credits it would be impossible to develop agrarian sector in Georgia. Agrarian credits play significant role in development of agriculture. Low availability of the financial resources reduces agriculture development growth pace. Therefore, it is significant to support formation of such credit system that would be tailored to the socioeconomic situation in Georgia and provide access to cheap agrarian loans to the small and medium farmers. Currently, in agrarian sector of Georgia, loans granted by the commercial banks comprise 1-3% of the total loans. The causes are complex. Among them there should be distinguished low profitability of this sphere today and long period required for business setup and this reduces the level of trust of banking sector to small and medium farmers. As a result, commercial banks are unable to contribute to effective functioning and development of the agrarian sector as they regard that providing financial resources to the agricultural production is of high risk for their successful activities. Goal of our research is to study and analyze condition of the financial institutions operating in Georgia, evaluate availability of credits for the agricultural cooperatives and determine possibility of use of the experience of EU countries in this sphere. The reports of the National Statistics Office of Georgia, FAO, ACDA, ENPARD consortium member organizations, provisions of Georgian Law on Agricultural Cooperatives, Georgian Law on Non-Banking Deposit Institutions – Credit Unions, Georgian Law on Entrepreneurs and other normative acts were studied and analyzed. For the purpose of information collection there was used unstructured in-depth interviews with the experts of credit sphere and representatives of the cooperatives.

Key words: Credit System, agrarian sector, credit cooperation.








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