65% of Georgian companies lost more than 50% in revenues

65% of Georgian companies lost more than 50% in revenues

access_time2020-05-29 17:00:10

Commissioned by the investor council, the PWC audit company conducted a study on the COVID-19 impact on Georgian business.

According to the study, most of them - 65% speak about  a reduction in demand by 50% or even more. Hotels and restaurants find themselves in the worst situation as 75% of them report a significant decline in revenue.

The negative factors such as a declining  demand, delays in payment, and a change in consumer behavior have caused  liquidity problems - 28% of companies have already faced  problems in meeting their financial obligations, about 50% expect the problems will be faced  in the future, and only 15% hope the crisis will not cause  financial problems.

50% of the companies surveyed have already reduced the number of employees to varying degrees, and this applies more to hotels and the restaurant business - 40% of them have carried out staff reductions.

 50% of the surveyed companies have already cut  the staff, this concerns mainly  the hotels and restaurants and 40% of them have already  cut the staff.

Agriculture was the least affected sector.

79% of companies faced the problem of attracting the additional financing. 85% of them have not yet applied for loans to banks, while the majority of those who applied have been denied a loan.

The exception is only large companies : 42% of them  have already received bank loans, 36% are waiting for a response, 22% are not going to apply for financing from a bank.


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