Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 
   
 


Home > News

Global and Bank of Georgia sign EUR50 million loan agreement to support small businesses

29.12.2023 09:53 "Agro Perspectiva" (Kyiv) — The EUR50 million EIB loan to Bank of Georgia will make it easier for small businesses to access finance with attractive terms and conditions.

A minimum of 30% of the loan will be directed to green investments.

The loan is complemented by the Greening the Financial Systems technical assistance programme funded by the German government under the International Climate Initiative.

The European Investment Bank (EIB, the EU bank) has signed a EUR50 million loan agreement with Bank of Georgia to support small and medium-sized enterprises (SMEs) and mid-caps, thus contributing to sustainable economic recovery and growth.

Under the agreement, the EIB and Bank of Georgia will direct a minimum of 30% of the loan towards green investments. It is the first EIB loan intermediated by Bank of Georgia with such a thematic dedication. The loan is complemented by support under the Greening the Financial Systems technical assistance programme, funded by the German government’s International Climate Initiative.

The loan is being provided by EIB Global (the arm of the EIB working beyond the European Union) and is the first tranche of a EUR120 million EIB loan programme that is expected to benefit more than 160 companies and sustain over 14 000 jobs. Bank of Georgia will double the EIB commitment by lending an equivalent amount of its own resources.

The loan will improve access to finance with long-term funding on attractive terms and conditions, with the option to make such funding available in local currency to help businesses avoid exchange rate risks. The loan contributes to sustainable economic recovery under the European Union’s flagship Economic and Investment Plan (EIP) for the Eastern Partnership, which aims to help 80 000 SMEs. The operation forms part of the EIB’s own-risk contribution to the objectives of the European Fund for Sustainable Development Plus (EFSD+).

EIB Vice-President Teresa Czerwińska, responsible for the EIB activities in Georgia, remarked: «We are pleased to partner with Bank of Georgia, one of Georgia’s leading banks and the European Union to support small businesses, which form the backbone of the economy. The loan, with a significant portion dedicated to green finance, underscores our commitment to fostering green growth in Georgia as Team Europe.»

European Union Ambassador to Georgia Paweł Herczyński said, «The EU’s Economic and Investment Plan for the Eastern Partnership is the backbone of EU-Georgia cooperation for the years to come. It sets ambitious targets and identifies important flagship initiatives including our support to 80,000 Georgian SMEs. The EU is pleased to support today’s loan agreement, which promotes green investments, as well as economic growth and job creation. The supported investments are crucial for the development and resilience of Georgia’s economy and society. Working on these EU priorities -a more inclusive, greener economy- will help Georgia on its EU path.»

Archil Gachechiladze, Bank of Georgia CEO commented: «We greatly appreciate EIB’s ongoing support for Bank of Georgia and Georgian businesses. This transaction, with a specific focus on green investments, is another important step towards the sustainable development of the local economy. Georgia has recently gained EU candidate status — a key milestone that will further improve business confidence, and in this context, the ongoing support from our partner IFIs is very important. We look forward to celebrating many more successful deals with EIB going forward.»

Background information

About the EIB and EIB Global

The European Investment Bank (EIB) is the long-term financing institution of the European Union, owned by its Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and SMEs.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, contributing to the three overarching priorities of the European Union: the European Green Deal, the Global Gateway and jobs, and sustainable and inclusive growth. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

About the EIB in Georgia

The EIB has been working to support economic and social development in Georgia since 2007. The EIB’s commitment exceeds EUR2 billion and is distributed across various sectors, including infrastructure, green energy, water and wastewater, and small and medium-sized enterprises (SMEs). The Bank operates in line with the European Neighbourhood Policy (ENP), the Eastern Partnership (EaP) and other EU bilateral agreements.

The EIB is one of the key institutional lenders to the Georgian financial sector in support of SMEs. Over EUR400 million of EIB operations in the country are for SME finance, and it is currently working with seven financial intermediaries. The EIB was ready to step up support for businesses when it was most needed, providing over EUR160 million in financing on special terms and conditions to cushion the economic impact of the COVID-19 pandemic. The EIB also operates two partial portfolio guarantee programmes in Georgia whose aim is to share the risk of lending to eligible SMEs with the intermediaries, in partnership with the European Investment Fund (EIF). The EIB Group portfolio guarantees cover over EUR380 million in SME loans. Five technical assistance operations have been implemented over the last two years to improve the capacity of intermediaries, and a new generation of technical assistance operations is about to be launched.

About the EIB’s Greening Financial Systems technical assistance programme

The technical assistance complementing the loan is being provided under the EIB Greening Financial Systems technical assistance programme, which is funded by the International Climate Initiative Fund (IKI) on behalf of the German Federal Ministry of Economic Affairs and Climate Action («BMWK»). The programme is a joint contribution from BMWK and the EIB to the work of the NDC Partnership, specifically the «Readiness Support for Greening Central Banks» initiative.

Agro Perspectiva

< EIB delivers EUR3 million for energy-efficient upgrades in three Ukrainian cities All news for
29.12.2023
FAO Food Price Index declines in December. Benchmark measure of world food commodity prices ends 2023 about 10 percent below its year-earlier level >

10.12.2024  
21:03 Indonesia Grain Imports to Subside after 2023/24 Record
08:14 Higher vegetable oil quotations drive up FAO Food Price Index, but lower cereal and sugar prices temper the rise
07:45 Cereal trade revised downwards amid weaker demand
02.12.2024  
23:17 Prime Minister: Some 50 partner countries have joined the humanitarian demining coalition
22:56 Norway pledges additional $4.5 mln to Ukraine's Grain from Ukraine initiative
01.12.2024  
03:30 EU agri-food trade slowed down in August 2024
26.11.2024  
00:06 Global sugar production, compared to last year, is estimated up 2.8 million tons to 186.6 million
24.11.2024  
04:43 During the Operation of Our Grain From Ukraine Program, We Have Managed to Save 20 Million People from Hunger – Zelenskyy
04:15 Ukraine Is Ready to Share Technologies, Military Experiences and Processing Methods with African Countries – the President
22.11.2024  
10:15 South Africa Sugar Production and Exports Estimated Down
19.11.2024  
23:04 Global Olive Oil Production Forecast to Rebound in 2024/25
22:47 Vitalii Koval discusses Ukraine's European integration with European colleagues
16:06 EBRD, European Union and United States help Kyiv prepare for winter
18.11.2024  
09:21 Agriculture Development Strategy 2030 – a roadmap to the EU
09:19 Ukrainian farmers have sown 96% of projected winter crop area
01.11.2024  
20:31 Ukraine has officially joined the International Fund for Agricultural Development
20:29 Ukrainian farmers harvested 63.7 million tonnes of grains and oilseeds
25.10.2024  
22:50 Agriculture hit hard: October port strikes rack up 30-40 million dollars in losses
21:04 Ministry of Agrarian Policy expects exports to rise in dollar terms
10:57 Ukrainian corn seed flows to Europe in further farm trade shift
24.10.2024  
23:02 Tree Nut Import Markets Highly Concentrated
23.10.2024  
11:18 Prime Minister UK warns Russian threat to global stability is accelerating as Putin ramps up attacks on Black Sea
15.10.2024  
09:35 Brazil Continues to Dominate Growth in Global Chicken Meat Exports in 2025
11.10.2024  
23:33 China Cottonseed Imports Show Strong Demand in Recent Years
20:30 India Removes Rice Export Ban, Spurring Additional Trade
30.09.2024  
17:27 List of agricultural machinery with cost compensation expanded to 11,300 items
29.09.2024  
20:21 1 in 11 people worldwide faced hunger in 2023, 1 in 5 in Africa If current trends continue, about 582 million people will be chronically undernourished in 2030, half of them in Africa
17:13 EU agri-food surplus increased in the first half of 2024
27.09.2024  
09:02 BASF presents new corporate strategy: BASF is setting a new direction for portfolio steering, capital allocation and performance culture
26.09.2024  
10:25 BASF sets new direction with corporate strategy and maintains high level of shareholder distributions
21.09.2024  
18:30 Three new sites recognized as Globally Important Agricultural Heritage Systems (GIAHS)
17.09.2024  
09:52 Cargill and Ducks Unlimited Working Together to Restore Watersheds Across North America
08:44 FAO calls for G20 cooperation as hunger targets continue to elude
06:40 FAO sees open trade as a cornerstone of global food security
13.09.2024  
07:08 U.S. Soybean Meal Hits 10‐Year High for Export Sales
12.09.2024  
21:26 U.S. Corn Exports Buoyed by Large Supplies
11.09.2024  
04:30 Global cereal production 2024 forecast on par with 2023 output, cereal trade likely to contract
06.09.2024  
11:35 FAO Food Price Index down marginally in August: lower sugar, meat and cereal quotations offset higher dairy and vegetable oil prices
10:34 Cargill acquires two US feed mills, strengthens production and distribution capabilities to grow with customers
05.09.2024  
09:23 PM: Plan to develop small generation facilities to reduce vulnerability to terrorism
30.08.2024  
05:03 Taras Vysotskyi discusses agricultural cooperation with Hungarian counterpart István Nagy
19.08.2024  
12:00 OTP BANK RECEIVED A $2.76 MILLION GRANT FROM USAID INVESTMENT FOR BUSINESS RESILIENCE ACTIVITY FOR CONCESSIONAL LENDING TO MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES
16.08.2024  
17:10 Cargill and Goanna Ag Pilot Irrigation Efficiency Technology on Mississippi Delta Cotton Fields
12.08.2024  
20:04 Ukraine Soybean Exports Forecast at Record in 2024/25
19:48 Domestic Demand and Trade Restrictions Reduce India Grain Exports
11.08.2024  
09:15 USAID Announces $3.9 billion in Direct Budget Support to the Government of Ukraine
09.08.2024  
17:41 USAID Announces $3.9 billion in Direct Budget Support to the Government of Ukraine
07.08.2024  
08:19 Turkey’s Mandarin Production and Exports to Rebound
26.07.2024  
09:28 Ongoing Economic Crisis in Argentina Impacts Dairy
15.07.2024  
10:28 Decline of China Pork Imports Continues in 2024

Also available: 


NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
Statistics
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2024 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com