Team Europe: EIB provides €6 million for COVID-19 recovery for Georgian businesses

Published in Economics
Thursday, 21 October 2021 10:04

The European Investment Bank (EIB), the bank of the European Union, has provided a €6 million loan to Terabank Georgia to support its local currency lending to micro, small and medium-sized enterprises (MSMEs) in the country. 

The loan is part of the EIB’s SME Outreach Initiative, which promotes access to finance for MSMEs in Georgia by helping smaller banks in the country to offer tailor-made services and financial products to their clients.

Covered by a guarantee from the European Union, the EIB financing aims to mitigate the impact of the COVID-19 pandemic and to contribute to an economic recovery that puts Georgia on a long-term sustainable growth track. As part of Team Europe, the EIB works hand in hand with other EU projects implemented in Georgia under the EU4Business brand.

MSMEs are the backbone of the Georgian economy, and access to finance is one of the major challenges they face. To date, the EIB has invested over €300 million in credit lines for Georgian businesses, sustaining more than 54,000 jobs in the country.

The material is prepared within the project "EU NEIGHBOURS east"

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    The European Investment Bank, the Bank of the European Union, will invest up to EUR 34 million in the expanding a high-speed internet network bringing fast and reliable internet services to some 500,000 Georgians living in 1000 rural and remote settlements in Georgia. The investment from the EU bank will finance the installation of 5000 km of fiber optics telecommunications network and provide open-access infrastructure for Georgian telecom operators to provide their fast-internet services. The EU has provided a guarantee through the External Lending Mandate.
    This project supports improved digital connectivity as one of the five flagship initiatives for Georgia under the European Union’s Economic and Investment Plan for the Eastern Partnership
    This new EIB operation is a part of broader Team Europe efforts to support Georgia in digitalising, accelerating green and sustainable social and economic growth, and increasing nationwide resilience to natural disasters such as the COVID-19 pandemic.
    Carl Hartzell, Ambassador of the European Union to Georgia, said: “Investing in the digital transition in Georgia is key to stimulate jobs and growth and bring about prosperity. Through the EU Economic and Investment Plan, we have already started to deliver real benefits on the ground. This flagship programme will assist in bringing new opportunities and reduce digital inequalities between rural and urban areas by developing high-speed broadband infrastructure for around 1,000 rural settlements. I consider this an important contribution to Georgia’s modernisation and economic development and recovery, while promoting digital inclusion in line with its national broadband strategy.”
    Teresa Czerwinska, Vice President of the EIB, who is in charge of operations in Georgia, said: “Our investment in fast and reliable internet services for rural Georgia is more than another Team Europe investment to improve quality of life and doing business for Georgians. It supports digitalisation, the key to the long-term competitiveness of the Georgian economy and its sustainable and green development. Finally, this investment reinforces the recovery of the national economy from the pandemic. Together with Team Europe, EU4Digital the World Bank and the Government of Georgia, we are building modern infrastructure, a cornerstone for a modern and thriving Georgia. The EIB is proud to have contributed yet again towards this goal the whole of Team Europe shares with Georgia.”
    Lasha Khutsishvili, Minister of Finance of Georgia said: “One of the main priorities of the Government of Georgia is the development of the digital economy. The improvement of broadband infrastructure is of the utmost importance in this regard. With the support of our international partner institutions such as the European Union, the European Investment Bank and the World Bank, we are aiming for this goal. This aspiration is demonstrated by the “Rural Fibre Network Georgia” project financed by the European Investment Bank. As one of the flagship projects within the Eastern Partnership priorities, it will promote digital development of rural settlements, that will ultimately be reflected in their economic growth. In addition it is in full compliance with Georgia’s National Broadband Strategy and Government’s programme for 2021-2024. I would like to express my gratitude to the European Union for its continued support and willingness to provide assistance in supporting and advancing the priority sectors of Georgia“.

    Press Release of EU

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  • Irakli Garibashvili: World Bank Study of Corruption Control ranks Georgia 45th among 189 countries and captures it at 45th Position in Top 50 of the World and 19th in Top 20 of Europe

    According to the World Bank study on Corruption Control, Georgia is ranked 45th among 189 countries and is captured at 45th position in Top 50 of the world and 19th in Top 20 of Europe. It was announced by Irakli Garibashvili, Prime Minister of Georgia at the press-briefing held at the Government Administration today.

    According to the Head of Government of Georgia, it has been the fourth time in a row that Georgia got captured in the Top 20. The Prime Minister also noted that in the assessment of Freedom House, Georgia is ranked 11th among corruption-free countries of the world.

    "I wish to start with a just released piece of information. It relates a World Bank study on governance and indicators summarising the analysis performed by dozens of research institutions and international organizations. Thus, I wish to let the public know that Georgia truly has a very significant progress and advancement towards this end. According to this report, Georgia has a leading and exemplary position in Europe and throughout the world by corruption-free and effective governance.

    More specifically, let me say that by the effective control of corruption, Georgia is ranked 45th in 189 countries of the world and is captured in the Top 50. In the European context, Georgia is ranked 19th. It is worth noting that it has been the fourth successive position occupied by Georgia in the referred Top 20.

    For the purposes of comparison, let me say that Georgia was ranked 62nd in the study published in 2012. Naturally, we were positioned outside the Top 20 of Europe.

    By effective control of corruption, our country is ahead of 10 EU member states: Czech Republic, Italy, Slovakia, Cyprus, Malta, Croatia, Hungary, Greece, Romania, Bulgaria. Georgia is preceded by countries of non-continental part of Europe: Ireland, UK, Iceland and some leading states of Europe.

    Out of NATO member states, Georgia is ahead of 14 by the effective control of corruption. Our country leads in the region, while it is preceded only by Baltic countries from the post-soviet bloc.

    As for the corruption-free index, Georgia is perceived to be at the 11th position in the assessment of Freedom House.

    According to the global survey of The Gallup Organization, Georgia has been captured at 14th position in the Top 20 of Europe among 122 economies of the world" stated Irakli Garibashvili, Prime Minister of Georgia.

    The Head of Government of Georgia also noted that by effective governance, Georgia has been ranked 38th in the best 20% of 189 countries, according to the World Bank. Our country has been named at 19th position in the Top 20 of Europe among the continental member countries of the World Bank.

    "For comparison, it is worth noting that Georgia was ranked 50th by effective governance in the study published by the World Bank on October 1, 2012. We have had truly great progress towards this end as well. Georgia is ahead of 8 EU member states: Italy, Poland, Slovakia, Hungary, Greece, Croatia, Bulgaria and Romania. Out of NATO member states, Georgia is ahead of 12 by effective governance and occupies the first place in the Caucasus and Black Sea region.

    I wish to note that the Economic Intelligence Unit carried out a study as well and assessed countries with a methodology deploying global governance indicators. Bureaucracy was measured in 180 countries and territorial units of the world in two dimensions: (a) degree of bureaucracy and institutional effectiveness and (b) freedom from excessive bureaucracy.

    Georgia received 75 out of 100 percentile assessment for the fourth time in a row this year, thus progressing to 17th position among the member countries of the World Bank and 12th in Europe.

    Also, I wish to note that Georgia precedes 1 country of G7, 2 member states of the EU and 5 member states of NATO by the rule of law. It is worth noting that in 2008-2012 Georgia fell outside several dozens of positions in the assessments of bureaucracy and received 62.5% at that time" noted the Prime Minister of Georgia.

    As noted by the Head of Government of Georgia, rule of law is at a higher level in Georgia than in Italy, Bulgaria, North Macedonia, Montenegro in the international rating. According to him, Georgia ranks fourth in the post soviet block, right after the Baltic countries.

    "By the corruption of civil servants and government officials, Georgia has been ranked at 20th position among 180 countries of the world and 12th among European countries.

    Georgia has also gone forward to many leading countries of the world. Our assessment is one and a half times higher than 9 European countries: Spain, Italy, Portugal, Poland, Hungary, Czech Republic, Malta, Cyprus as well as South Korea and twice higher than in Bulgaria, Romania and Greece. With these measurement results, Georgia has been equalised with such leading countries of the world as the USA, Japan, France, Ireland, Austria, Belgium, Iceland, Slovenia, Croatia and others.

    For comparison, it should be noted that the current assessment of Georgia is 3 times higher than the results demonstrated in 2011-2012.

    And lastly, by the degree of regulation, the World Bank ranks Georgia 19th among 189 countries of the world and captures it in the Top 20 of Europe. Hence, I wish to once again thank every cabinet member and civil servant for this success" added Irakli Garibashvili, Prime Minister of Georgia.

    Press Service of the Government Administration

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