European Union External Action

EU allocates additional GEL300m (EUR100m) for SMEs in Georgia, Moldova and Ukraine

The European Union, through the European Investment Bank (EIB) and the European Investment Fund (EIF) signed the first guarantee agreements with ProCredit Holding and its subsidiaries in order to support small and medium-sized enterprises (SMEs) in Georgia, Moldova and Ukraine. Thanks to the agreements, worth GEL 300 million (EUR 100 million), SMEs in the three countries will profit from easier and better access to finance. ProCredit banks are now able to provide local SMEs with a 70% guarantee on each loan, making financing less expensive and reducing the collateral they need to provide.

The additional funds are provided in the framework of the EU4business initiative under which the European Union makes available extensive support to SMEs in Georgia and other Eastern Partnership countries. EU, through EU4business, assists companies with (1) funding, (2) training, and (3) export support to new markets. Since 2009, 2.1 billion GEL (€711 million) has been provided in total for 63,000 Georgian companies, in order to realise their full potential and boost economic growth.

Commenting on the transactions, EIB Vice-President Vazil Hudák with oversight for Ukraine and Georgia, said: “Support for SMEs is one of the EIB Group’s priorities because by funding them we are boosting economic growth, innovation and employment. These guarantee agreements with our long-standing partner ProCredit Holding and its subsidiaries will help us to reach SMEs in the countries that have signed an Association Agreement with the EU, increasing access to crucial long-term financing in order to help them continue to develop new projects and generate growth.

 

What kind of EU support is available for Georgian businesses?

1. More access to finance:

  • Supporting loans in local currency
  • Subsidised finance for export-related investments
  • Subsidised finance for buying or upgrading equipment
  • Loans for women-led businesses
  • Micro credits for setting up or developing a small business

2. Stronger business skills:

  • Tailored advisory services and technical support to companies – human resources, IT, management structures, business models, etc.
  • Training programmes to improve skills of entrepreneurs in key areas
  • Tailored training and mentoring for women entrepreneurs

3. Better access to new markets:

  • Business advice and training for export-oriented companies
  • Help for companies to adapt and export to the EU
  • Support to agricultural and food industries to take advantage of EU markets

 

Who has already benefited?

  • Vehicle importer “ASP-GEORGIA” received EU funding and advice from the EBRD to improve its business processes. As a result, it increased its turnover by 71% and the number of employees grew by 90%. More.
  • Tourist company “Lopota Tour Services” received EU funding to improve its information management system. Now it has more than doubled its staff from 55 to 117. More.
  • A medical centre “Medical Holding 23” with EU funding and advice from the EBRD, improved its internal management and became more efficient. Now, the company has the international quality management certificate ISO 9001. More.

 

Do you want to know more?

Find out what is available: www.eu4business.eu/ge

EU4Business phone line is now open in Georgia: +995 32 2 220118

EU4Business programmes are implemented in Georgia by the EBRD, EIB, KfW, GIZ, the International trade Centre, EUROCHAMBRES, UEAPME, OECD, and the World Bank.

Languages:
Editorial Sections: