EIB and ProCredit Bank support hundreds of companies in Georgia
- Release date: 14 July 2017
- Reference: 2017-200-EN
Since 2011, the European Investment Bank Group (EIB) and ProCredit have jointly improved access to long-term finance for SMEs in Georgia. So far, 872 projects from small and medium-sized businesses have received EIB financing totalling EUR 25m through ProCredit Bank Georgia.
“Unlocking the potential of the private sector in Georgia by providing affordable, long-term financing for enterprises, in particular SMEs, is one of the EIB’s strategic priorities. We welcome the fact that, also thanks to our partners at ProCredit Bank Georgia, our activities are bearing results in the implementation of important projects”, said Mr Heinz Olbers, EIB Neighbouring Countries Department Director, during a presentation in Batumi today. The presentation was attended by Georgian Finance Minister Dimitri Kumsishvili and covered selected projects financed by ProCredit Bank Georgia under EIB loans for SMEs and/or the EIB InnovFin SME Guarantee.
The EIB has signed three loans for SMEs with ProCredit Bank Georgia (in 2011, 2012, and 2015) with a total value of EUR 40m. In March this year, following the signature of the InnovFin SME Guarantee agreement with the EIF, ProCredit Bank Georgia also started to use the InnovFin SME Portfolio Guarantee.
The Bank’s activities in Georgia as well as in other Eastern Partnership countries help to reach the goals set by the EU’s European Neighbourhood Policy by financing projects that promote prosperity and increased regional integration. This activity increases economic stability in the region and helps to forge stronger intraregional partnerships, while supporting low-carbon and climate-resilient growth.
“InnovFin – EU Finance for Innovators” is a joint initiative launched by the European Investment Bank Group (the EIB and EIF) in cooperation with the European Commission under the EU Research and Innovation Programme Horizon 2020.
InnovFin consists of a series of integrated and complementary financing tools and advisory services offered by the EIB Group, covering the entire value chain of research and innovation (R&I) in order to support investments by the smallest to the largest enterprises.
In February 2017 the European Investment Fund (EIF) and ProCredit Bank JSC (Georgia) signed the first agreement for SMEs and small midcaps in Georgia under InnovFin. This agreement, supported by the InnovFin SME Guarantee facility with the financial backing of the EU under Horizon 2020, is expected to enable ProCredit to provide EUR 50m worth of loans to innovative companies over the next two years.
Since the beginning of 2016 all EU activities that support small and medium-sized enterprises (SMEs) in the Eastern Partnership countries have come under the umbrella of EU4Business.