Georgia: EIB approves first tranche of loans to SMEs

Published in Economics
Monday, 30 May 2016 16:59

The Georgian private sector will soon be able to benefit from lending recently approved by the European Investment Bank (EIB). The EIB loan will be used to provide access to finance for investment and working capital needs for small and medium-sized enterprises (SMEs) and midcaps, particularly in the areas of trade and commerce. This opportunity is highly relevant in the context of the EU-Georgia Association Agreement, which includes a Deep and Comprehensive Free Trade Agreement (AA/DCFTA), the EIB said on 27 May.
The EIB will be lending EUR 22.5 million – the first tranche of an approved loan of EUR 45 million – to a Georgia-based bank to finance SMEs and midcaps.
According to the EIB, its total lending commitments in Georgia amount to some EUR 820 million, including projects supporting urban reconstruction following last year’s devastating floods and for improving the country’s critical infrastructure. The EU Bank has also financed projects in Georgia in the transport, water and energy sectors. (EU Neighbourhood Info)

Read 915 times

Related items

  • EU-Georgia Association Council will take place on 6 September

    The 7th meeting of the EU-Georgia Association Council will take place in Brussels on 6 September.

    The meeting will be chaired by the Prime Minister of Georgia Irakli Garibashvili. EU High Representative Josep Borrell will lead the EU delegation. 

    The Association Council will discuss EU-Georgia relations against the background of Georgia’s application for EU membership, with a focus on political dialogue and reforms, economic and sectoral cooperation, trade and trade-related issues, as well as peaceful conflict resolution.

    Representatives of the EU and Georgia will also exchange views on foreign and security policy, in particular on regional issues.

    Find out more

    Press release

  • EU’s public procurement market is now open for Georgian companies

    The European Union public procurement market is now open to Georgian companies, following a decision adopted earlier by the EU-Georgia Association Council. 

    Georgian companies can view a complete and up-to-date list of public tenders announced by the 27 EU Member States on the Tenders Electronic Daily (TED) website. Every day, TED publishes more than 1,000 tenders in various sectors in electronic format. A single search interface allows businesses to find the tender they need based on criteria such as the nature of the contract and keywords.

    This is an achievement and a milestone in EU-Georgia economic relations and an important step towards the full implementation of the Deep and Comprehensive Free Trade Area (DCFTA) between Georgia and the EU,” the EU Delegation to Georgia said in a press release. 

    The decision also means that companies registered in the European Union have full access to public procurement tenders in Georgia. The central Georgian e-procurement system is open without restrictions to EU companies.

    Find out more

    Press release

  • EU annual report on Georgia: some progress in Association Agreement implementation and the need for further inclusive reforms

    The European Union has published its annual Association Implementation Report on Georgia, which reviews Georgia’s progress in implementing reforms under the EU-Georgia Association Agreement over the past year. The publication comes ahead of the next EU-Georgia Association Council meeting scheduled for 6 September 2022.

    “Georgia continued its reform path under difficult circumstances, against the background of its socio-economic recovery from COVID-19, a tense political environment and Russia’s war of aggression against Ukraine,” said the EU High Representative Josep Borrell. “However, we have seen setbacks in the key areas of rule of law, governance and human rights. As Georgia embarks on the new phase of its relations with the EU, with its European perspective, Georgia needs to take a responsible and conscientious approach that matches its stated objectives and its citizens’ aspirations.”

    Key findings

    A report prepared by the European External Action Service (EEAS) and the services of the European Commission shows that the EU-Georgia Association Agreement continues to be a driving force for reform. Overall, the process of aligning national legislation with EU legislation under the Association Agreement, including the Deep and Comprehensive Free Trade Area, is well underway and successful. Inclusive and green growth remains central to the EU-Georgia cooperation. In 2021, the EU continued assistance related to COVID-19 and contributed to a strong and sustainable socio-economic recovery, laying the groundwork for the implementation of the Eastern Partnership’s economic and investment plan.

    “However, in 2021, challenges threatened to undermine the country’s democratic foundations and there were setbacks with regard to the rule of law. This demonstrates the need for a renewed and serious commitment to democratic consolidation, judicial reforms, and action to reduce political polarisation and to strengthen the rule of law and to guarantee a professional and pluralistic and independent media environment. These are essential priorities for Georgia to advance on its European path,” says a press release by the EEAS.

    “The ball is now in Georgia’s court. A serious commitment to democratic consolidation, judicial reforms, strengthening the rule of law as well as fight against corruption and organised crime will be key,”  said Olivér Várhelyi, Commissioner for Neighbourhood and Enlargement.

    The EU-Georgia Association Agreement, which includes a Deep and Comprehensive Free Trade Area, was fully actioned on 1 July 2016. It deepens political ties, strengthens economic ties and respects shared values, and is the basis for EU-Georgian cooperation and EU support to reforms in Georgia. 

    Find out more

    Press release

  • European Investment Bank approves €1.59 billion of EU financial assistance for Ukraine

    The European Investment Bank (EIB), the EU bank, is providing €1.59 billion, supported by guarantees from the EU budget, to help Ukraine repair the most essential damaged infrastructure and resume critically important projects addressing the urgent needs of Ukrainian people.

    This is the second package of support for Ukraine under the EIB Ukraine solidarity urgent response developed in close cooperation with the European Commission. It follows an emergency support package of €668 million fully disbursed within a month of the war’s beginning. Like the first one, this new financing is offered at favourable terms including long tenors.

    The package was agreed by the EIB Board of Directors yesterday; €1.05 billion will be made available immediately.

    The financing will help essential services to resume and get the most critical infrastructure up and running again, strengthen the country’s resilience and maintain economic stability. It consists of two blocks of intervention:

    • Immediate financial assistance totalling €1.05 billion. This will consist of upfront disbursements under eight existing finance contracts. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services, and support urgent energy and energy efficiency measures in preparation for the cold season.
    • Resuming implementation of EIB-financed projects in Ukraine totalling €540 million where possible, excluding areas of active hostilities and territories not controlled by the Ukrainian government. The selected projects will cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction and recovery programmes. The exact timing of these disbursements will depend on the state of advancement of underlying projects.

    Valdis Dombrovskis, European Commission Executive Vice-President for an Economy that Works for People, said: “This EIB support will keep strategic public sector companies financially viable and able to carry out urgent repairs of critical infrastructure, resume the provision of essential services and address other immediate needs of the Ukrainian people, including those displaced by Russia’s war. The European Commission will keep working with EU Member States and our international partners to support Ukraine on every level — for as long as it takes.”

    Find out more 

    Press release

  • EIB approves €4 billion credit line to support Ukrainian refugees in all EU countries

    On 18 May, the Board of Directors of the European Investment Bank (EIB) approved a €4 billion credit line (or programme loan) to help national authorities, cities, regions and local communities in all EU Member States address urgent investment needs and help welcome and integrate people fleeing the war against Ukraine.

    The EIB pledged these funds back in April, at ‘Stand Up for Ukraine’, a global pledging campaign for Ukraine and its refugees, but board approval was required. The EU and Canada then raised €9.1, including €4 billion from the EIB and €1 billion from the European Commission.

    The EIB credit line will help to provide this support by making financing available to the development of key infrastructure and services for refugees and host communities, such as housing, schools, hospitals and access to jobs. The financing can also cover eligible operational expenditures related to the supply of equipment, facilities and services for the integration of war refugees.

    This financial package will be complemented by EIB advisory support thanks to the EMBRACE Advisory Platform, a new initiative by the EIB and the European Commission.

    All EU Member States can make use of this funding opportunity and bespoke advisory for projects that help refugees start a new life in their host countries,” said EIB President Werner Hoyer. “This initiative comes together with the €668 million support we gave in early March to the Government of Ukraine to cover their urgent liquidity needs; both are part of our Solidarity Package for Ukraine, which we set up together with the European Commission.

    Find out more

    Press release

Business News

Silk Road Tbilisi Forum 2015 has started

Silk Road Tbilisi Forum 2015 has started

Silk Road Tbilisi 2015 forum started today. Following the success of the inaugural Routes Silk Road...

Agreement between SES and GEE

Agreement between SES and GEE

A new multi-year agreement was signed between worldwide satellite operator SES and Global Eagle Ente...

Visa free regime to impose for 15 February

Visa free regime to impose for 15 February

The visa regime imposed by Georgia to Iran has been cancelled for 15 February,” -the Deputy Ambassad...

USA to allocate 63 million US dollars for Georgia

USA to allocate 63 million US dollars for Georgia

U.S. Department of State to allocate 63 million US dollars for Georgia. According to the budgetary d...

MOST READ

« December 2022 »
Mon Tue Wed Thu Fri Sat Sun
      1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31  

About

The News Agency,
NEWSDAY.GE is
a part of STARVISION
Media Group.
It made its first
appearance on the Internet..More

 

Contact

NEWSDAY Ltd.
Lechkhumi street.43

Georgia,Tbilisi

Phone: (+995 32) 257 91 11
E-mail: avtandil@yahoo.com

 

 

 

Social Media