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

Published in Economics
Wednesday, 16 December 2020 15:12
  • 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

Read 105 times

Related items

  • Team Europe: EIB immediate Covid-19 response support to the Georgian MSME sector reaches milestone with additional support to Liberty Bank
    • The EU bank will extend Covid-measures to the existing credit line at the Liberty Bank for a total of €17.5 million, including a €2.5 million multi-currency top-up.
    • Loan reinforces Team Europe support for the recovery of Georgian MSMEs from the COVID-19 pandemic as well as sustains jobs, maintains liquidity and operations, and fuels the economic recovery of Georgia.
    • In 2020 alone, EIB provided  €70 million to support faster recovery of Georgian businesses from COVID-19 pandemic

    The European Investment Bank (EIB), the lending arm of the European Union, and Liberty Bank agreed to expand an existing credit line for Georgian micro, small and medium-sized enterprises (MSMEs) with additional €2.5 million to a total of €17.5 million. With this signature, the EIBs total Covid-19 immediate response comprises additional lending exceeding € 70 million, and existing loans benefiting from Covid measures exceeding € 90 million.
     
    The EIB loans inject fresh capital into the national financial market at a time when the COVID-19 pandemic is burdening SMEs with liquidity issues and restricting their ability to access finance for maintaining daily operations or funding expansion plans.
     
    The loan agreement was signed in presence Charles Michel, the President of the European Council.
     
    Please find the video materials here: https://we.tl/t-HjPiBizZZK
     
    EIB President Werner Hoyer, said: Team Europe and the EIB will continue to build up our support for the Georgian MSMEs and fuel the economic and social recovery of the national economy from COVID-19. Last year alone we boosted Georgian recovery from COVID-19 with EUR 170 – 70 million in new lending for MSMES, and 100 million for the reinforcement of the national healthcare sector`s ability to deal with the pandemic. Today, the EIB increased both the amount and the attractiveness of our loans available to MSMEs, as this is the first loan the EU Bank provides to a counterpart in Georgia in local currency. We look forward maintaining our position as the trusted ally of the Republic of Georgia and a key source of support for sustainable social and economic development.”
     
    CEO of Liberty Bank Vasil Khodeli commentedI would like to thank EIB and the EU for their continuous support and the confidence they have shown in Liberty Bank. Thanks to the increased loan amount, Liberty Bank will unlock significant additional lending for MSMEs in Georgia. The coronavirus has hit MSMEs very hard and this facility will provide much needed support for our clients to overcome short-term liquidity shortages, maintain jobs and support economic recovery in the upcoming months. The additional multi-currency facility equivalent to GEL 10 million includes the possibility to make financing available in local currency, which provides us with greater flexibility to finance and support wider range of MSME businesses in Georgia. This is also a further sign of our commitment to help businesses of all sizes to get through the turbulent times.”

    Further increasing affordability of EIB loans
     
    The loan introduces the option to make funding available in synthetic lari, Georgia’s national currency, and increases the affordability of the loans for MSMEs. The expansion will help Georgian MSMEs sustain jobs, maintain liquidity to continue operations, and fuel the economic recovery of Georgia from the COVID-19 pandemic.
     
    The investment from the EU bank forms part of the EIB’s SME Outreach Initiative, which promotes access to finance for MSMEs by supporting smaller local banks to better service their clients. MSMEs are the backbone of the Georgian economy and major employers in the country. The loan expansion comes with a €450,000 in technical assistance to support Liberty Bank improve and expand its offer for MSMEs.
     
    Team Europe adds value for Georgian companies
     
    Covered by a guarantee from the European Union, the loan from the EU bank will enable increase in lending activities to MSMEs 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.
     
    This credit line comes with increase attractiveness to SMEs benefiting from the more flexible lending terms enabled by the EIB’s COVID-19 emergency measures. These measures are extended as part of the Team Europe’s efforts to Georgia and other EU partner countries during the pandemic.
     
    To date, the EU bank has invested more than €290 million in credit lines for Georgian businesses, sustaining more than 54,000 jobs in the country.
     
    Background information
     
    About the EIB:
    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
     
    The EIB in Georgia:
    The EU Bank has been supporting economic and social development of Georgia since in 2007, providing to date some EUR 1.85 billion to local economy. The EU Bank activities in the country supported key infrastructure projects (EUR 1bn), MSMEs and mid-caps (EUR 290m), Municipal infrastructure (EUR 280m) and green energy generation projects (EUR 23.5m). COVID-19 recovery activities in 2020 totalled EUR 170m.
     
    Georgia is among a few non-EU countries eligible to benefit from the European Investment Fund (EIF) operations, designed to support small and medium enterprises (SMEs) with risk-sharing instruments.  Today, the EIB Group portfolio of guarantees in Georgia cover EUR 382.9 million of SMEs loans.

    The EIB finances most projects in Georgia under the EU External Lending Mandate. This provides the EIB with a guarantee covered by the EU budget for projects in the fields of social and economic infrastructure, local private sector development and climate action. Projects may also benefit from EU grants made available under the DCFTA program funded by the NIP, which amongst others promotes EIB’s efforts to make funding available in local currency.
     
    About JSC Liberty Bank:

    Liberty Bank is one of the largest Banks in Georgia, with total Assets of over GEL 2 bln and Capital GEL 200 mln. The Bank operates the largest branch network comprised of over 360 branches and 570 ATMs. The Bank is the exclusive agent of the Government of Georgia for the distribution of pensions and social benefits. The Bank employs over 4600 employees serving over 1.7 mln customers. 

    For more information on the EIB’s activities in Georgia please follow: https://www.eib.org/en/publications/the-european-investment-bank-in-georgia

    Source: The EU Press Release

  • 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.

    You have received this email because you are subscribed to EU Neighbours Alerts mailing list.
    You can choose to receive the EU Neighbours Alerts instantly, daily or weekly.

  • Visa cardholders of Bank of Georgia can now tap to pay with Garmin® smart watches
    • For the first time in Caucasus region, Visa cardholders of Bank of Georgia can pay contactless with any Garmin watch that supports Garmin PayTM

    Tbilisi, April 19, 2019 – Bank of Georgia continues to introduce innovative products and offer customers an exclusive method of payment for the first time in the Caucasus region. Visa cardholders of Bank of Georgia can now tap to pay with any payment-enabled Garmin® smart watch. Georgia is the first country in the Caucasus region where this innovation is being offered.

    Garmin PayTM is available on different smart watch models allowing people to make contactless payments without the burden of carrying cash. This feature is especially useful for active customers who may not want to carry too many items on-the-go.  In addition to the contactless payment function, these watches monitor pulse, help track location, plan and analyze workouts, receive messages, play music and much more, depending on the model.

    To better understand the relationship between fitness and payments, Visa conducted the “Sweaty Money[1]” survey, which found that people who regularly engage in fitness, experience significant inconvenience when they need to make a purchase before or after their workout:

    • 57% of respondents do not carry any form of payment while exercising because they are worried about losing it or have no place to put it.
    • 49% of respondents have at least once wanted to make a purchase immediately before or after working out but could not because they did not have any form of payment with them.

    Garmin customers can shop contactless with a piece of mind as Garmin Pay uses Visa Token Service technology to replace the 16-digit account number and expiration date with a unique digital identifier that can be used to process payments without exposing actual account details.

    Every Visa cardholder of Bank of Georgia can purchase Garmin watches exclusively in SOLO lounges across the country.

    "We are pleased to offer another innovative product exclusively to our Visa cardholders and for the first time in the Caucasus region. Time management is very important in the present reality. Consequently, we are constantly striving to save our customers time by offering them customized, and innovative products. It's important that customers of International brand- Garmin have an opportunity to enjoy more features,” said CEO of Bank of Georgia Archil Gachechiladze.

    “We believe that the future belongs to the Internet of Things. Soon, we will no longer need to always carry wallets - their function will be performed by wearables,” said Vira Platonova, senior vice president and group country manager for Visa CISSEE. “Garmin Pay brings this future closer in Georgia. Now, with Bank of Georgia enabling their Visa cardholders to use this solution, even more Georgians have an opportunity to securely and easily pay by simply waving their Garmin device at a contactless payment terminal.”

    About Bank of Georgia:

    JSC Bank of Georgia is the leading Georgian bank with a market share of 34.7% (based on total assets), 33.5% (based on total loans) and 34.9% (based on client deposits). The Bank offers a broad range of retail banking, corporate banking and investment management services. As of 31 December 2018, Bank of Georgia served approximately 2.4 million client accounts through one of the largest distribution networks in Georgia, with 271 branches, the country’s largest ATM network, comprising 876 ATMs, 3.115 Express pay (self-service) terminals and a full-service remote banking platform and a modern call center. For more information about Bank of Georgia, please visit http://bankofgeorgia.ge.

    About Visa Inc.

    Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere.  As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit www.corporate.visa.com, www.visasoutheasteurope.com, https://www.facebook.com/VisaGeorgiaGE, www.visanewscissee.com

    About Garmin International, Inc.

    Garmin International, Inc., is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin is a registered trademark and Garmin Pay is a trademark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

    Notice on Forward-Looking Statements:

    This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations.  The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 30, 2017, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983).  A copy of such Form 10-K is available at http://www.garmin.com/aboutGarmin/invRelations/finReports.html.  No forward-looking statement can be guaranteed.  Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

    [1] **The “Sweaty Money” survey was conducted among a panel of approximately 1,000 adult users ages 18 and older within the United States by Wakefield on behalf of Visa in August 2017. For the Sweaty Money infographic, go to https://usa.visa.com/visa-everywhere/innovation/payment-wearables-for-workouts.html 

  • EIB introduces support to innovative business in Georgia

    European Investment Bank (EIB) presented two new business innovation programmes at a conference in Tbilisi. The new “’DCFTA Initiative East” and “EU Research and Innovation Programme Horizon 2020: InnovFin – EU Finance for Innovators” programmes were developed jointly with the European Commission and will boost the development of the private sector in Georgia. Around 200 representatives of business, banks, microfinance institutions, financial advisors and industry associations, as well as high-level representatives of the European Union and the Georgian Government, were present at the conference to discuss support for economic growth and employment.
    The Deep and Comprehensive Free Trade Agreement (DCFTA) Initiative East aims to strengthen economic development in the countries which have signed an association agreement with the EU – namely Georgia, Moldova and Ukraine – by providing financial and technical support targeted at small and medium-sized enterprises (SMEs) in the three countries.
    "InnovFin – EU Finance for Innovators" consists of a series of integrated and complementary financing tools and advisory services offered by the EIB Group, covering the entire value chain of research and innovation in order to support investment.
    In February 2017, the European Investment Fund and ProCredit Bank JSC (Georgia) signed the first agreement for SMEs in Georgia under InnovFin. The agreement is expected to enable ProCredit to provide EUR 50 million in loans to innovative companies over the next two years.
    H.E. Janos Herman, Ambassador of the European Union to Georgia, stated: "These programmes are another proof that the European Union is committed to supporting the development of Georgian SMEs. In close cooperation with the European Investment Bank, we provide tangible support to innovative businesses that seek to take advantage of the new opportunities with the EU."

  • EIB ALLOCATED 450 MLN EUROS TO GEORGIA

    European Investment Bank (EIB) will allocate 450 million Euros to Georgia for the development of road infrastructure, agriculture as a sector and production in agriculture at large. It was noted at the meeting of Mr. Jan Vapaavuori, Vice President of EIB with H.E. Giorgi Kvirikashvili, Prime Minister of Georgia today.
    According to the Prime Minister of Georgia, funding from EIB is of particular significance inter alia for the spatial planning and large infrastructure projects being the key directions of the Four Point Plan of the Government of Georgia (GOG).
    Vice President of EIB focused on the great importance of the funding and noted that it will advance the living standards in the country and boost the competitiveness of Georgia.
    Discussions were also related to investment projects, currently implemented in the country with EIB support. In the opinion of the Prime Minister of Georgia, presence of the Regional Office of EIB is highly commendable in the country, as it promotes investments and mutual cooperation.
    Financing Agreements on the allocation of resources by EIB to Georgia were signed after the meeting. Signatories were Mr. Jan Vapaavuori, Vice President of EIB and H.E. Dimitry Kumsishvili, First Deputy Prime Minister and Minister of Finance of Georgia.
    EIB will thus allocate 250 million Euros for the construction of new roads and rehabilitation of the existing priority routs; 100 million Euros will be disbursed for the rehabilitation and upgrade of municipal infrastructure and another 100 million Euros - for the small and medium enterprises (SMEs) operating in agriculture and food production under the referred concessional long-term lending.

Business News

Georgian Lari Drops in Value against US Dollar

Georgian Lari Drops in Value against US Dollar

Georgian National Currency decreased by 0.0011 GELs against US Dollar. The official exchange rate to...

ENPARD: Czech farmers shares experience with Georgian colleagues

ENPARD: Czech farmers shares experience with Georgian colleagues

Members of eight Georgian cooperatives who have received ENPARD grants have visited the Czech Republ...

Flooding in Tbilisi caused damage of 100 million GEL

Flooding in Tbilisi caused damage of 100 million GEL

According to Georgia’s Prime Minister Irakli Gharibashvili, the damage caused by the Tbilisi flood m...

Georgian Lari drops in Value against USD

Georgian Lari drops in Value against USD

According to official exchange rate, Geogrian National Currency slightly depreciated against dollar,...

MOST READ

« April 2021 »
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    

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