During the pandemic from March
21 to date, the Horeca sector in Georgia have GEL 25 million of debt to the distribution
companies, and so far there are no preconditions that this debt will be paid in
the near future.
According to President of Georgian
Hotel and Restaurant Federation Shalva Alaverdashvili, the
sector does not deny the existence of this debt, but will not be able to start
paying it until the tourism industry
recovers and the borders are opened.
“How to repay debts if there is
no job? Hotels are closed all over the country, and will not open soon due to the lack of tourists. We do not deny that we can’t pay for
the products but we will certainly cover the debt as soon as the tourism sector is restored and the hotels
are opened, ”he explains.
The head of the Association of
Distributors Iva Chkonia, doesn’t specify the affected companies that provided hotels and
restaurants with their products, but have not received payment which are very often quite substantial amounts - for
example, GEL 500,000.
“The extension of the
6-month preferential regime for VAT payments can somehow mitigate the situation,
otherwise many of the companies will be left without working capital and will
be forced to close ” Iva Chkonia says.
Chkonia stresses that the
distribution sector does not ask the government for financial assistance from such
as tax incentives and a bank loan in order to be able to work.
“The forecasts are not
encouraging as the government officials clearly told us that they are not going to extend
tax regime,” the
head of the Association Iva Chkonia notes.