Georgia closes unprofitable enterprises

Georgia has started closing unprofitable enterprises, head of the department for enterprise management Alexander Khotzhevanishvili said, Business Georgia reports.

Six enterprises, including Veli, Imel, Vaziani, were closed. 51 more enterprises will be closed. The process of merging 50 state-owned enterprises has ended.

Khotzhevanishvili said that state enterprises were split into groups. The first group is special profitable enterprises, second – prospect enterprises with problems, third – unprofitable or low-income enterprises, fourth – enterprises with no prospects, which will be closed or become bankrupt, fifth – special enterprises where refugees live, sixth – regional service enterprises to be handed to municipalities.

The reform will be concluded with 1426 state enterprises turned into 300-400.