Meeting with the President of the European Investment Bank

Published in Economics
Friday, 22 January 2016 11:35

The Prime Minister of Georgia and President of the European Investment Bank (the EIB) Werner Hoyer discussed progress of the infrastructural projects in Georgia financed by the EIB and the next stages of cooperation. Their meeting took place within the frames of Davos World Economic Forum.
As stated by the President of the Bank, Georgia enters in the list of three non-EU countries that implements operations of the EIB efficiently.
Pursuant to the head of the EIB, the Bank is still interested in execution of the projects, which will empower small and middle business in Georgia.
The amount of funds allocated by the EIB to Georgia equals 480 mln Euros in public sector and 165 mln Euros in private sector.

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  • EIB and ProCredit to support faster recovery of Georgia`s SMEs from the COVID-19 crisis with €10 million

    The European Investment Bank /EIB/ will provide €10 million to the ProCredit Group to offer a new credit line for small and medium enterprises (SMEs) and midcaps.

    The EU bank and ProCredit create a €10 million credit line for the recovery of SMEs and midcaps from the COVID-19 pandemic in Georgia.
    EIB and ProCredit Group agree on similar credit lines in Ukraine (€25 million) and Moldova (€20 million), bringing the total support to companies to €55 million.
    The operation is part of the Team Europe’s COVID-19 emergency response to help sustain jobs, maintain liquidity and operations, and fuel the economic recovery of the EU partner countries.
    The European Investment Bank, the lending arm of the European Union, will provide €10 million to the ProCredit Group to offer a new credit line for small and medium enterprises (SMEs) and midcaps in Georgia and support their faster recovery from the COVID-19 pandemic. The credit line can be made available in multiple currencies, including in the local currency.

    The investment is a part of a €55 million regional agreement with the ProCredit, which allows creation of similar credit lines at ProCredit Group in Ukraine (€25 million) and Moldova (€20 million), all in support of faster economic COVID-19 recovery of the EU partner countries in the Eastern Neighbourhood.

    This transaction provides much-needed financing to companies in Georgia to address working capital issues created by the ongoing pandemic. The EIB loan also strengthens the national banking sector in Georgia and reinforces its ability to finance the economic recovery of the country.

    EIB Vice-President Teresa Czerwińska, who is in charge of operations in Georgia, Moldova and Ukraine, said: “Team Europe continues to support economic recovery of EU partner countries in the Eastern Neighbourhood from COVID-19, reinforcing pan-European solidarity in these difficult times. We have thus created new sources of financing at a moment when such aid is crucial for the survival of our SMEs. We look forward to expanding our partnership in the future, so as to allow even more companies benefit from our shared dedication to support SMEs and midcaps grow and develop.

    EU Ambassador to Georgia Carl Hartzell said: The EU stands by Georgia during the pandemic. The EU has mobilised an unprecedented GEL 1.5 billion COVID-19 support package for Georgia, of which economic recovery of businesses is a fundamental part. This top-up by the EU bank strengthens this component by providing more assistance via local Georgian banks. Thanks to this agreement, an additional number of Georgian small and medium businesses will be able to access finance to get them through these challenging times.

    The management of ProCredit Holding AG & Co. KGaA, the parent company of the ProCredit group, said:
    “Thanks to the well-established relationships with our clients and partners such as the EIB, we have been able to provide efficient support to numerous SMEs during these turbulent months. These EIB credit lines will support SMEs in Georgia, Moldova and Ukraine to overcome short-term liquidity shortages and will provide much-needed support in local currencies for their investment projects. We expect that this will open them up to new lines of business and opportunities and thus will support economic recovery in the coming years. We are confident that this will be stimulated by a structural shift towards investments that are climate-friendly as well as socially and ecologically sustainable.”

    Team Europe: Strengthening pan-European solidarity in times of crisis

    The EIB investment is a part of Team Europe’s overall response to COVID-19 and supports the sustainable social and economic recovery of the EU’s Eastern Neighbourhood. The operation reinforces both SMEs and mid-caps, which are the backbone of national economies and a major source of employment in three countries.

    Covered by guarantees from the European Union, the EIB investment enables the ProCredit Group to increase its lending activities without jeopardising the long-term stability of the local financial sectors or their ability to support the economic recovery from the pandemic in the long term.

    The credit lines will be even more attractive due to the more flexible terms enabled by the EIB’s COVID-19 emergency measures. These emergency measures are a part of Team Europe’s efforts to support partner countries in the Eastern Neighbourhood during the pandemic.

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  • Team Europe - EIB and Bank of Georgia expand credit line for SMEs and mid-caps with €25 million to aid recovery from COVID-19 pandemic
    • The EIB will top up its existing credit line at the Bank of Georgia €25 million to a total of €75 million to support the recovery of Georgian SMEs from the pandemic, extending coverage to include mid-caps.
    • The operation is part of the Team Europe’s COVID-19 emergency response to help sustain jobs, maintain liquidity and operations, and fuel the economic recovery of Georgia.
    • Since 2007, the EU bank has invested close to €2 billion in all key sectors of the Georgian economy, including connectivity, healthcare and SMEs.

    The European Investment Bank (EIB), the lending arm of the European Union, will invest €25 million to expand a credit line for Georgian small and medium-sized enterprises (SMEs) and mid-caps available at the Bank of Georgia, helping to accelerate the recovery of the national economy from the COVID-19 pandemic. The credit line can be disbursed in multiple currencies, including in lari, Georgia’s national currency. 

    The EIB loan will inject fresh capital into the national economy at a time when the COVID-19 pandemic is burdening SMEs with liquidity issues and restricting their ability to access finance and maintain daily operations or fund expansion plans. 

    The investment from the EU bank will reinforce SMEs and mid-caps, which are the backbone of the Georgian economy and major employers in the country, and the country’s financial sector, boosting their ability to drive the economic recovery from the pandemic.

    EIB Vice-President Teresa Czerwińska, who is in charge of operations in Georgia, said: As the bank of the European Union, we are proud to be bolstering Georgia and its economy in this hour of need, no matter how difficult the situation is. The EIB financing will support both Georgian SMEs and the country’s financial sector so that they can continue to operate despite the pandemic and drive the Georgian economy forward. This means we will save jobs, incomes and revenues. Together with our partners in the country’s public and private sector, we look forward to building a prosperous and sustainable future for Georgia.”

    EU Ambassador to Georgia Carl Hartzell said: The EU stands by Georgia during the pandemic.  The EU has mobilised an unprecedented GEL 1.5 billion COVID-19 support package for Georgia, of which economic recovery of businesses is a fundamental part.  This top-up by the EU bank strengthens this component by providing more assistance via local Georgian banks. Thanks to this agreement, an additional number of Georgian small and medium businesses will be able to access finance to get them through these challenging times.

    Bank of Georgia CEO Archil Gachechiladze commented: “I am very glad to see that our very successful partnership with the EIB is continuing. The multi-currency long-term facility gives us flexibility to utilise the funds according to the currency and maturity needs of our SME and mid-cap clients. Such facilities are key for the private sector, especially during these challenging times, and this further strengthens our position as a leading provider of long-term financial resources on the market. I would like to thank the EIB for its cooperation with us and look forward to many more successful deals in the future.”

    Team Europe adds value for Georgian companies

    Covered by a guarantee from the European Union, the loan from the EU bank will enable the Bank of Georgia to increase its lending activities without jeopardising the long-term stability of the country’s financial sector or its ability to support the economic recovery from the pandemic in the long term.

    The credit line is even more attractive due to the more flexible terms enabled by the EIB’s COVID-19 emergency measures, extended as part of the Team Europe’s efforts to support partner countries such as Georgia during the pandemic.

    This is the third operation between the EIB and the Bank of Georgia supporting the country’s SMEs and mid-caps. To date, the EU bank has invested more than €330 million in credit lines for Georgian SMEs and mid-caps, sustaining more than 54 000 jobs in the country.

    Source: https://www.eib.org/en/press/all/2020-367-team-europe-eib-and-bank-of-georgia-expand-credit-line-for-smes-and-mid-caps-with-eur25-million-to-aid-recovery-from-covid-19-pandemic

  • Prime Minister’s Comment

    Prime Minister Giorgi Kvirikashvili summarized the Georgian delegation's participation in the World Economic Forum in Davos and commended the results as successful.
    According to the Head of Georgian Government, meetings were held heads of states and governments and leading global companies. Giorgi Kvirikashvili expressed hope for tangible results in the nearest future.
    "During our two-day visit, we had many interesting meetings. I am pleased to inform you that, at yesterday's business launch, the President of the International Monetary Fund made a very optimistic forecast, which is very important to us. We had meetings with heads of states, prime ministers, and investors, whom we provided with information about our country. As you know, agreements are rarely signed in Davos. As a rule, information is exchanged and plans are made for further action. Georgia has very good chances of becoming a regional center of operations for many companies, which was actually pointed out by everyone we have met so far. We had meetings with service companies, manufacturers, and many are already taking interest in Georgia. We believe that we will soon have tangible results," Giorgi Kvirikashvili told the press.
    The Prime Minister of Georgia continues a series of meetings at the World Economic Forum in Davos.

  • Giorgi Kvirikashvili met with Philipp Rösler

    Georgian Prime Minister Giorgi Kvirikashvili met with Philipp Rösler, Head of the Center for Regional Policies of the World Economic Forum in Davos. The parties discussed the importance of the World Economic Forum, with its participating countries, including the Georgian delegation led by the Prime Minister.
    Giorgi Kvirikashvili emphasized Georgia's investment opportunities and thanked the organizers of the forum for invitation, also expressing hope that the bilateral meetings at the World Economic Forum in Davos would bring about greater foreign investments.
    In 2011-2013, Philipp Rösler served as Germany's Vice Chancellor and Minister of Economics. 

  • Meeting with representatives of the European Investment Bank

    Minister of Regional Development and Infrastructure Zurab Alavidze met the representatives of the European Investment Bank. The meeting was attended by the First Deputy Minister Irakli Matkava, Deputy Minister Galaktion Buadze, Chairman of the Roads Department  George Seturidze and the Director of the United Water Supply Company  Giorgi Koberidze.  The sides  discussed the projects which are funded and supported by European Investment Bank.
    As it was mentioned on the meeting, EIB will allocate funding package with amount EUR 450 million.  This amount will enable  implementation  a number of major infrastructure projects by the Ministry. The amount will increase the bank's portfolio in Georgia by 50%, which is an important message to evidence of a positive attitude of the Bank.

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