The FINANCIAL — The EIB funds, in cooperation with ProCredit Bank – a well-established EIB partner in Georgia and the wider region – will support private sector development.
EIB Vice-President László Baranyay, responsible for EIB operations in Georgia commented: “The competitiveness of the Georgian economy hinges, among others, on access to finance for productive investment. The EIB will provide such funding. This will have a positive impact on job creation and the living standards of the people of Georgia.”
This EIB has signed loans for EUR 548 million in Georgia since it started its operations here in 2010. Some EUR 165 million – or 30% of the total volume – has been dedicated to SMEs and MidCaps, according to EIB.
The EIB – the European Union’s bank – finances projects in Georgia on the basis of an EU mandate for the countries of the Eastern Neighbourhood, the so-called External Lending Mandate (ELM). The 2014-2020 ELM allows for a total amount of Bank financing in the Eastern Neighbourhood of EUR 4.8 billion to support projects of significant interest to both the EU and its Eastern Neighbours in the areas of local private sector development, social and economic infrastructure and climate change. In addition, the Bank has set up a EUR 3 billion own-risk Neighbourhood Finance Facility to enhance its support for the Neighbourhood Countries.
The EIB is committed to stepping up its support for Georgia following the signature in June 2014 of the EU and Georgia Association Agreement, which includes a Deep and Comprehensive Free Trade Agreement (AA/DCFTA). This Agreement significantly deepens political and economic ties with the EU in the framework of the Eastern Partnership.