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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:
2. Stronger business skills:
3. Better access to new markets:
Who has already benefited?
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.