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.
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.
was the least affected sector.
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.