European Investment Bank Invests 45 Million Euros to Support SMEs

TBILISI – The European Investment Bank (EIB) is lending EUR 22.5 million to one of Georgia’s Bank Republic to finance small and medium-sized enterprises (SMEs) and middle capitalization companies (midcaps) engaged in trade and commerce in the country.

The first tranche of the approved loan will amount to EUR 45 million.

The EIB loan will be used to fund activities strengthening Georgia’s private sector by widening access to finance for investment and working capital needs for SMEs and midcaps, particularly in the areas of trade and commerce.

“A strong SME and midcap sector is of crucial importance to Georgia’s economic growth, employment and political stability. EIB funds provided on favorable terms will improve access to finance for companies that mostly face difficulties in financing their activities,” said Laszlo Baranyay, the EIB Vice-President responsible for lending operations in the Eastern Partnership countries.

The EIB’s total lending commitments to Georgia amounted to some EUR 820 million, including projects supporting urban reconstruction following last year’s devastating floods and improving the country’s infrastructure.

The EU Bank has also financed projects in Georgia in the transport, water and energy sectors.

By Eka Karsaulidze
Edited by Nicholas Waller

Photo: Euro East

31 May 2016 17:46