EIB, Bank of Georgia expand credit line with €25 mln for SMEs, mid-caps

The European Investment Bank (EIB) will invest €25 million to expand the credit line for Georgian small and medium-sized enterprises (SMEs) and mid-caps available at the Bank of Georgia to support the recovery of the business sector and the country’s economy from damage wrought by the pandemic.

The operation is part of Team Europe’s COVID-19 emergency response to help sustain jobs, maintain liquidity and operations, and fuel the economic recovery of Georgia. 

The EIB financing will support both Georgian SMEs and the country’s financial sector so that they can continue to operate despite the pandemic and drive the Georgian economy forward. This means we will save jobs, incomes and revenues. Together with our partners in the country’s public and private sector, we look forward to building a prosperous and sustainable future for Georgia,” said EIB Vice-President Teresa Czerwińska.

This is the third operation between the EIB and the Bank of Georgia supporting the country’s SMEs and mid-caps. To date, the EU bank has invested more than €330 million in credit lines for Georgian SMEs and mid-caps, sustaining more than 54,000 jobs in the country. 

The EU stands by Georgia during the pandemic. The EU has mobilised an unprecedented 1.5 billion GEL COVID-19 support package for Georgia, of which economic recovery of businesses is a fundamental part. This top-up by the EU bank strengthens this component by providing more assistance via local Georgian banks. Thanks to this agreement, an additional number of Georgian small and medium businesses will be able to access finance to get them through these challenging times,” said EU Ambassador to Georgia Carl Hartzell.

Since 2007, the EIB has invested close to €2 billion in all key sectors of the Georgian economy, including connectivity, healthcare and SMEs.