World Bank pledges €85 mln to support job creation, firms affected by pandemic in Georgia
The new 'Relief and Recovery for Micro, Small and Medium Enterprises' (MSMEs) project aims to help businesses and create jobs by expanding and strengthening programmes that support MSMEs and by promoting digitalisation of Georgia’s economy. Photo: Nino Alavidze/Agenda.ge.
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About 6,000 micro, small and medium sized enterprises in Georgia impacted by the Covid-19 pandemic are to benefit from €85 million in financing support, approved today by the World Bank’s Board of Executive Directors.
The new 'Relief and Recovery for Micro, Small and Medium Enterprises' (MSMEs) project aims to help businesses and create jobs by expanding and strengthening programmes that support MSMEs and by promoting digitalisation of Georgia’s economy.
The project aims at alleviating the financial constraints of firms and helping them adjust their business to a post-Covid-19 scenario. One component of the project will strengthen and expand MSME support programmes implemented by Enterprise Georgia (EG). The direct support for micro and small firms will come in the form of grants offered by EG’s micro and small entrepreneurship support programme.
Small and medium sized enterprises (SMEs), on the other hand, will be eligible for support through co-financing of interest payments under EG’s 'Produce in Georgia' programme, which will reduce their borrowing costs and address immediate liquidity constraints.
SMEs will also benefit from access to partial credit guarantees through financial institutions, which are designed to address high collateral requirements and heightened risk aversion of financial institutions.
The project will also help strengthen the country’s financial infrastructure and increase the use of digital financial services; will also support the design and provision of technical assistance to firms to adjust to the new normal, via the adoption of relevant managerial, digital and other Covid-proofing practices.
The latest ‘Europe and Central Asia Economic Update’ published by the World Bank reads that the Georgian economy is unlikely to recover to pre-Covid levels until late 2022. The World Bank says that the Georgian economy is projected to expand to 4% in 2021 and then to firm to 5% in 2022.
Georgia has experienced significant economic growth and poverty reduction in recent years, but the benefits have not been evenly distributed between men and women, according to the 2020 Georgia Gender Assessment, released today by the World Bank.
The World Bank, the Organization of the Black Sea Economic Cooperation (BSEC) and the government of Georgia have started consultations on 'bluing the Black Sea' to address marine pollution and provide Georgia with a valuable opportunity to integrate the Black Sea into the country’s strategies for climate adaptation and mitigation.
Georgia has a score of 85.6 out of 100 in the latest World Bank Report Women, Business and the Law 2021, which is higher than the regional average score observed across Europe and Central Asia (83.4), says the report.
968 people have tested positive for coronavirus over the last 24 hours in Georgia, increasing the number of total confirmed cases to 330,375. Out of the new cases 527 were reported in Tbilisi.
More than 30 small and medium-sized enterprises (SMEs) in Georgia will benefit from a new three-year programme launched by the United States Agency for International Development (USAID) and Gazelle Finance, a financial company that invests in SMEs in the Eurasia Region, with current focus on Georgia and Armenia.
About 6,000 micro, small and medium sized enterprises in Georgia impacted by the Covid-19 pandemic are to benefit from €85 million in financing support, thanks to an agreement signed between the World Bank and the Ministry of Economy of Georgia was signed on May 17.
The World Bank Vice President for Europe and Central Asia Anna Bjerde, who is visiting Georgia, has announced that the World Bank is eager to participate in the development of a new strategy for Georgia after the meeting with the Prime Minister Irakli Garibashvili today.