Georgia: EBRD and EU to unlock funds for locals firms through Bank of Georgia and TBC Bank
European Bank for Reconstruction and Development (EBRD) President Odile Reno-Basso, on a visit to Georgia, has signed agreements with two Georgian banks on loans to local small businesses.
The EBRD will provide new US$ 20 million loans to Bank of Georgia and to TBC Bank to help local firms across the country increase competitiveness and invest in upgrades, including green technologies.
This funding comes under the EU4Business-EBRD Credit Line – a flagship programme that enables borrowers to enhance production and trade more successfully on the international market, as well as advance environmental practices.
MSMEs can access funds in local currency and benefit from incentive grant funding, as well as technical assistance from international advisers, funded by the EU under the EU4Business initiative. Georgian companies will be able to improve their productivity, competitiveness and working environment for their employees.
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EU and EBRD support issue of US$80 million green bond on Georgia’s capital market
The European Union and the European Bank for Reconstruction and Development (EBRD) have announced the first winner who will receive a grant through their capital market support programme.
Georgia Renewable Power Operations’s (GRPO) US$ 80 million green secured bond will become the largest transaction, as well as the first ever green bond issued on Georgia’s capital market.
The company will receive a contribution from the European Union to co-finance issuance related fees, and the support mechanism will be implemented by the EBRD.
“I believe the programme will catalyze green and sustainable bond issuances in the country and incentivise renewable energy developers to align with high Environmental, Social and Governance standards. We are extremely proud to be pioneers in this regard and to contribute towards the development of the Georgian renewable energy sector,” said Nuka Mshvidobadze, GRPO’s chief financial officer.
The EU-funded Capital Market Support Programme aims to facilitate capital market development in Georgia, through the implementation of educational activities as well as the support mechanism.
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EU urges Georgian authorities to ensure highest legal standards in cases against media owners
The European Union has urged the Georgian authorities to ensure the highest legal standards in cases against media owners.
Reacting to the Tbilisi Court of Appeal decision to uphold charges against Nika Gvaramia, Director General of one of the TV channels in Georgia, including the sentence of 3 years and 6 months’ imprisonment, the EU said that it has been monitoring this case closely.
“The European Union does not comment on the merits of individual Court cases, but we note once again that questions have been raised, including by the Public Defender, in relation to this case,” says a press release by the European Union External Action Service.
The press release also reminds that the European Union remains committed to supporting Georgia in addressing all 12 priorities in order to live up to the European aspirations of its citizens.
In this respect, the EU recalls that “stronger efforts to guarantee a free, professional, pluralistic and independent media environment, notably by ensuring that criminal procedures brought against media owners fulfil the highest legal standards” represent one of the priorities identified by the European Commission.
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Irakli Garibashvili, Prime Minister of Georgia Holds Online Meeting with Odile Renaud-Basso, President of EBRD
Irakli Garibashvili, Prime Minister of Georgia held an online meeting with Odile Renaud-Basso, President of the European Bank for Reconstruction and Development (EBRD) today. Dignitaries spoke about the successful cooperation and avenues of future interaction between Georgia and EBRD.The Head of Government of Georgia noted that EBRD is not only a loyal partner of Georgia, but has had a great contribution in the democratic development of the country. Most significant role of the EBRD in addressing the difficulties witnessed in the post-pandemic period was noted at the meeting.Dignitaries also discussed the specific directions of sectoral cooperation, including the energy security and energy independence of the country, projects of regional importance aimed at the increase of power energy generation through exclusive green/renewable sources, Black Sea connectivity, various infrastructure projects, economic and structural reforms, strengthened role of the private sector, human capital and other.The Prime Minister of Georgia expressed hopes towards continuing the existing fruitful cooperation. It was noted that support of the EBRD is priceless in the funding of priority areas of the country.EBRD has so far invested over 4.9 billion Euros through 270 projects in Georgia, out of which a lion’s share is concentrated in the private sector of the country. Georgia is one of the largest beneficiaries of the EBRD.Meeting was attended by the following officials of the EBRD: Klara Krol, Member of the Board of Directors Representing the Czech Republic, Hungary, Slovak Republic, Croatia and Georgia; Thomas Revial, Director of the President’s Office; Matteo Patrone, Managing Director for Eastern Europe and the Caucasus; Catarina Bjorlin Hansen, Regional Director for the Caucasus; Oleksandr Pavlyuk, Associate Director and Senior Political Counsellor; Tea Melikadze, Senior Banker; Francesca Foglia, Adviser in the President’s Office; David Managadze, Principal Banker for Power and Energy; Nina Davitashvili, Moderator of the Meeting. Georgian attendees included: Levan Davitashvili, Deputy Prime Minister and Minister of Economy and Sustainable Development; Lasha Khutsishvili, Minister of Finance and Revaz Javelidze, Head of Government Administration.Press Service of the Government Administration
EBRD commits up to €3 billion to Ukraine
The European Bank for Reconstruction and Development (EBRD) will commit up to €3 billion over 2022-2023 to help Ukraine’s businesses and economy keep functioning.
On a visit to Kyiv, EBRD President Odile Renaud-Basso told Ukrainian President Volodymyr Zelenskyy of the Bank’s determination to support Ukraine while it defends itself against Russia’s aggression.
Since the invasion began in February, the EBRD has committed more than €1 billion, and aims to triple that figure by the end of 2023. Its primary focus will be to support the “real” economy – maintaining energy and food security, restoring rail infrastructure, and supporting the pharmaceutical industry.
EBRD investment has already been made into Ukraine’s electricity company Ukrenergo, as well as providing up to €500m liquidity support for ‘Naftogaz’, the country’s main gas supplier. Discussions are also underway to scale up funding for urgent repairs of the electricity grid and to support municipal authorities in Kyiv, Lviv and Dnipro, says the EBRD.
EBRD investments are backed by donors or guarantors from EU and G7 countries, including the US. Norway recently pledged €200m in support.
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EU and UNDP help bring life back to Georgia’s historic landmarks
On 18 October, Georgian parliamentarians presented their study on the potential to revive disused historic sites in the country.
Initiated by the Parliamentary Culture Committee with assistance from the European Union and the United Nations Development Programme (UNDP), the enquiry engaged leading Georgian experts and representatives of the public, private and civic sectors.
The four-month study looked into ways to bring new life to historic sites, using their cultural value for redeveloping surrounding areas. It explored policy approaches for sustainable protection and preservation of historic heritage and studied the role of national and local authorities, the private sector and civil society in designing conservation and management tools.
The final report will be published at the end of October.
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