EBRD and EU partner with Bank of Georgia to support local firms
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for Georgian micro, small and medium-sized (MSMEs) enterprises via Bank of Georgia.
A new US$ 20 million EBRD loan to the leading Georgian bank will help local firms across the country increase competitiveness and invest in upgrades, including green technologies. The loan agreement was signed today by EBRD President Odile Renaud-Basso on her official visit to Georgia.
This funding comes under the EU4Business-EBRD Credit Line – a flagship programme that enables borrowers to enhance production and trade more successfully on the international market, as well as advance environmental practices; at least 70 per cent of the loan is expected to fund investments in accordance with the EBRD Green Economy Transition (GET) approach.
MSMEs can access funds in local currency and benefit from incentive grant funding, as well as technical assistance from international advisers, funded by the EU under the EU4Business initiative. Georgian companies will be able to improve their productivity, competitiveness and working environment for their employees.
Bank of Georgia was the first financial institutions to join the EU4Business-EBRD credit line in Georgia. Since 2016 it has financed more than 100 landmark projects in almost all the sectors of the economy: manufacturing, agriculture, construction, medical services and hospitality. Listed on the London Stock Exchange, the bank is one of the largest – and systemic – banks in Georgia with a record of strong and stable returns that has been financing businesses for almost 30 years.
Since 2009 the EU has been supporting companies in Georgia through the EU4Business programme. With almost 50 different projects active with a total budget of over €320 million, the EU is proud to be the largest foreign supporter of private sector development in Georgia. These efforts are bringing results – in 2021 alone, more than 34,000 SMEs in Georgia were supported, resulting in an estimated 15,000 new jobs and generating an estimated €120 million of extra income.
To date, the EBRD has invested more than €5 billion in 270 projects in the financial, corporate, infrastructure and energy sectors, with 81 per cent of those investments in the private sector.