CONSTRUCTION BUSINESS DEVELOPMENT TENDENCY IN POST- CRISIS GEORGIA

Abstract

After August events of 2008 (the Russian-Georgian war and the world financial crisis) the construction business reached deadlock. Say nothing of small and medium companies, most of the leading development-construction companies faced the danger of bankruptcy. Despite the improvement of statistical indicators in recent years, the construction business is still in the active phase of its crisis. Financial resources (loans issued by the banks) providing active capacity of construction business are entirely blocked. This work immediately highlights the construction business problems and its development tendencies in post-crisis period in Georgia. While developing this work, we thoroughly processed officially declared statistical information of construction field. We read and analyzed materials related to these issues. Moreover, we conducted independent study, compiled questionnaire and arranged interviews with the founders of the development-construction companies. We talked to government authorities and commercial banks’ representatives as well.  Obtained results reveal, that, expectations about banks’ activity increasing with respect to the construction business financing remained an illusion. Commercial banks’ interest towards the development business is causing to stop financing construction companies.

DOI: http://dx.doi.org/10.5755/j01.em.18.1.3647