EUR 100 Million Investment and SME Support from EIB

Georgia is to receive an additional EUR 100 million from the European Investment Bank (EIB) to be spent on the development of municipal infrastructure in Georgia, from building new roads to renovating schools.

A meeting was held between Municipal Development Fund (MDF) Executive Director, Juansher Burchuladze, members of the Donors Relations and Projects Management Unit, and EIB representatives Ionas Bistrom, Georgia Koutsiana and Aleksandra Vilkom.

During the meeting, the MDF and EIB discussed those projects carried out with their cooperation during the past year, and future goals were set, amongst which one of the most important programs is the Urban Reconstruction and Development Program.

Last week, the EIB, together with the European Union, allocated a EUR 5 million (11 million GEL) loan to Georgia to rehabilitate the central water system in Tsnori village in Georgia’s Kakheti region to enable its 5,500 residents to have 24 hour access to a clean, reliable water supply.

In July, the EIB also announced its decision to provide financial support for small and medium-sized businesses (SMEs) in Georgia from September via local commercial banks. The EIB agreed to actively take part in the financing of local SMEs, but said that business owners would be required to meet the current stringent conditions required to gain initial capital.

According to official sources, the banks that will be involved in the financing include Bank Republic, TBC Bank, ProCredit Bank and the Bank of Georgia.

Eka Karsaulidze