The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have announced a new loan of US$ 10 million to ProCredit Bank Georgia, a leading bank in the country and a long-term EBRD partner. The loan will support Georgian micro, small and medium-sized enterprises (MSMEs) to improve their competitiveness, access international markets, and invest in green technologies.
Loan agreement signed in Tbilisi
The loan agreement was signed on 28 December 2023 in Tbilisi by EBRD President Odile Renaud-Basso and ProCredit Bank Georgia CEO Alex Matua. The signing ceremony was attended by Georgian Prime Minister Irakli Garibashvili, EU Ambassador to Georgia Carl Hartzell, and other high-level officials and business representatives.
The loan is part of the EU4Business-EBRD Credit Line, a flagship programme that provides financing, grants, and technical assistance to MSMEs in Georgia and other countries in the Eastern Partnership region. The programme aims to help MSMEs modernise their products and services, meet EU standards, and seize new trade opportunities under the Deep and Comprehensive Free Trade Area (DCFTA) agreement between the EU and Georgia.
Benefits for Georgian MSMEs
Georgian MSMEs that borrow from ProCredit Bank Georgia under the EU4Business-EBRD Credit Line will enjoy several benefits, such as:
- Access to funds in local currency and at competitive interest rates
- Eligibility for incentive grants of up to 15 per cent of the loan amount, funded by the EU
- Free consultancy services from local and international experts, funded by the EU
- Support for green investments that reduce energy consumption, greenhouse gas emissions, and environmental impact
- Opportunities to increase productivity, quality, and innovation
- Enhanced market access and export potential
A strong partnership for development
The EBRD and the EU have been supporting the development of the private sector in Georgia for many years, with a focus on MSMEs, which account for more than 90 per cent of all businesses and employ more than half of the workforce in the country.
Since 2009, the EBRD has invested more than €5 billion in 270 projects in various sectors of the Georgian economy, with 81 per cent of those investments in the private sector. The EBRD is also a leading provider of green finance in Georgia, with over 40 per cent of its portfolio supporting the transition to a low-carbon and resilient economy.
The EU is the largest donor and trading partner of Georgia, providing over €320 million of support for MSMEs under the EU4Business initiative since 2009. The EU also offers preferential access to its market of over 450 million consumers for Georgian products and services that comply with EU standards and regulations.
ProCredit Bank Georgia is one of the largest and most reputable banks in the country, with a strong focus on financing MSMEs and promoting sustainable development. The bank has been cooperating with the EBRD since 2000 and has received over €200 million of funding from the EBRD for various purposes, including energy efficiency, trade finance, and women entrepreneurship.
