Team Europe: EIB immediate Covid-19 response support to the Georgian MSME sector reaches milestone with additional support to Liberty Bank

Published in Economics
Monday, 01 March 2021 17:47
  • 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

Published in Economics
Thursday, 24 December 2020 14:20

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.

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

EIB introduces support to innovative business in Georgia

Published in Economics
Tuesday, 09 May 2017 10:20

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

Published in Politics
Friday, 09 December 2016 14:39

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.

Georgia is the most economically and politically stable country in the region-Laszlo Baranyay

Published in Economics
Thursday, 15 September 2016 15:36

Georgia is the most economically and politically stable country in the region – this statement was made by the Vice President of EIB Laszlo Baranyay at the meeting with Prime Minister of Georgia Giorgi Kvirikashvili.
According to him, European Investment Bank plans to double investment in Georgia in next year. The sides highlighted implementing projects financed by EIB. Giorgi Kvirikashvili presented 4 level plan to the representatives of European Investment Bank and talked about the importance of projects in Georgia.

Meeting with the Vice President of the European Investment Bank

Published in Politics
Thursday, 15 September 2016 15:35

In terms of the economy and politics, Georgia is the most stable country in the region, - Vice President of the European Investment Bank (The EIB) Laszlo Baranyay noted during his meeting with the Prime Minister of Georgia Giorgi Kvirikashvili. According to Laszlo Baranyay the EIB intend to double its financial exposure in Georgia throughout the next few years.
Conversation during the meeting held at the Administration of the Government of Georgia touched upon the infrastructural projects funded by the EIB and prospects of cooperation.
The head of the Government presented the Government's four-point reform plan. Particular attention was paid to the ways of implementation of the infrastructural projects and the importance of the EIB support in this area was highlighted.
According to Laszlo Baranyay, the EIB actively support the reform course of the Government and plans on expanding cooperation.
"We discussed the ongoing issues with the Prime Minister. I believe that Georgian people are well aware of the active cooperation between the EIB and Georgia as well as with EIB's partnership with its economic representatives in both public and private sectors. As of today the amount of our investments is over 700 million EU, and we plan to increase this exposure in the coming 2-3 years. Our activities cover following economic and infrastructural areas, including support of SMEs and cooperation with several Georgian banks. Of course, we intend to intensify our activities, since your country has respective potential and relevant conditions. We discussed various methods of intensification of the cooperation, including in the area of education and social infrastructure. Our cooperation is very good and I hope that it will deepen in the near future," - stated the Vice President of the EIB after the meeting.

EIB secondment program for public and private sector professionals from EP

Published in Economics
Monday, 08 August 2016 16:58
The European Investment Bank (EIB) has announced the launch of the Eastern Partnership Secondment Programme for professionals from both the public and private sectors. Set up with the support of the EIB’s Eastern Partnership Trust Fund (EPTATF), the Programme is only open to nationals of five Eastern Partnership countries (Armenia, Azerbaijan, Georgia, Moldova and Ukraine) that have entered into a Framework Agreement with the EIB. Professionals from these countries who work in Ministries, Central Banks, other public sector organisations or private sector entities are invited to apply.
According to the EIB, the Secondment of Candidates must be supported by their employer. The Programme is designed to offer successful candidates and their organisations an opportunity to gain relevant work experience in the EIB.  Only candidates supported by their employer will be considered.

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)

The sitting of the EU Integration Committee

Published in Politics
Friday, 18 March 2016 15:05

The Committee considered the Financial Agreement between Georgia and EIB on Urban Reconstruction and Development of Georgia, introduced by the Head of Department for Relations with the Parliament of the Finance Ministry, Andro Loladze.
“The Agreement aims at financing of various small infrastructural projects (roads, streets, drainage, sewerage system rehabilitation) in Georgian regions, as well as tourist infrastructural projects and liquidation of consequences of Tbilisi natural disaster”. EIB shall allocate 100 ml EURO loan with the term of 25 years where 5 years are preferential and interest rate is fixed or based on Libor.
He also introduced the Financial Agreement between Georgia and EIB on East-West Highway II, envisaging financing of Zemo-Osiauri-Chumateleti section with 49 ml EURO. “The section is 14.1 km. long where the first 5.8 km will be financed by EIB and the rest 8.3 km with 140 USD by WB”. The loan of 49500 ml EURO is allocated for 30 years where 5 years are preferential.
He also introduced the Loan Agreement between Georgia and EBRD on East-West Highway Corridor Improvement. The document envisages Zemo-Osiauri-Chumateleti section improvement into 4-lane highway. The loan constitutes 140 ml USD by the WB with 25 years andINTEREST RATE based on Libor. Preferential term is 10 years. The Committee supported the documents.
The Committee considered the draft by National Statistics Service on Official Statistics, introduced by the CEO, Meri Daushvili. The draft aims at definition of periodicity of Census to facilitate to timely provision of the society with the information and optimal consumption of budgetary funds. The draft defines responsible body for preparation and endorsement of statistic classifications and excludes the vague interpretation of the norm.
“The draft was conditioned with EU and European Nuclear Energy Union and member states Agreement and Georgia-EU AA” – as stated, the article 289 of which requires compliance of law on statistics of Georgia with EU statistics legislation, as well as entailed with EU Economic and Social Council Statistics Commission Recommendations requiring UN member states to define the 10-year period of census. “Thus, deriving from the interests of the country, we will be able to better plan census and to implement EUAA obligations on statistics. Also, the direct requirement o



Page 1 of 2

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