Gov’t Forgives Leasing, Rent Arrears on State Property

Economy Minister Natia Turnava announced today that the government has greenlighted forgiving pandemic-affected individuals and legal entities renting or leasing state property their relevant arrears as well as fines accrued from March 21, 2020 to March 21, 2021.

Minister Turnava said the initiative covers leasing, rent and management fees and arrears of more than GEL 5 million (USD 1.6 million) and penalties for non-payment or late payments of about GEL 1 million (USD 320,000).

“This stems from the difficulties faced by the country, businesses and people,” said the Economy Minister, adding that the authorities selected the one-year period which was the toughest in terms of lockdown measures and the epidemiological situation.  

She said that the government also decided to extend the measure to those businesses and individuals who had partially or fully paid the said fees, noting they will enjoy the benefit in their future payments.

Of the number of fees forgiven, GEL 1 million (USD 320,000) were arrears, while more than GEL 4.5 million (USD 1.4 million) were fully or partly made payments, which will be subtracted from future obligations, clarified a press release delivered by the Georgian Government. 

The decision comes less than three weeks before the October 30 local election runoffs. But, responding to reporters’ questions, Minister Turnava asserted “we are fulfilling the obligations imposed by law, which has nothing to do with the elections.”

She said that amendments adopted by the Georgian Parliament to the Law on State Property in June obligated the authorities to develop the new rule. 

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