About 6,000 MSMEs to benefit from World Bank's €85 mln programme in Georgia
The direct support for micro and small firms will come in the form of grants offered by Enterprise Georgia's micro and small entrepreneurship support programme. 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, thanks to an agreement signed between the World Bank and the Ministry of Economy of Georgia was signed on May 17.
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.
Micro, small and medium sized enterprises (MSMEs), 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.
The project includes a payment system infrastructure upgrade component, which will be implemented independently by the National Bank of Georgia (NBG). The project will strengthen assistance programmes for small enterprises on the one hand, and on the other hand will create a new system of fast payments, which will increase access to cash for these enterprises.
Vice-President of the NBG Papuna Lejhava said that Georgia will have the new payment system next year.
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.
In order to overcome challenges caused by the coronavirus pandemic, Georgian Finance Minister Lasha Khutsishvili has introduced new tax initiatives today.
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, approved today by the World Bank. 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 World Bank has approved $34.5 million in additional financing today to support Georgia’s efforts to provide affordable and equitable access to Covid-19 vaccines, and ensure effective vaccine deployment in the country by strengthening the vaccination system, announces the World Bank.