The European Bank for Reconstruction and Development (EBRD) and the European Union announced on 28 December that they would provide ProCredit Bank, one of Georgia’s leading banks, with US$ 10 million (€9 million) to on-lend to micro, small and medium-sized enterprises (MSMEs) across the country.
These funds will be used to help local MSMEs modernize their products and services to meet EU standards, boost their competitiveness and seize international trade opportunities. As at least 70 per cent of the loan is expected to fund investments in green technologies, the borrowers will be able to improve environmental practices and resource efficiency, and boost product quality, health, and safety measures.
Borrowers successfully implementing their investments will be eligible to receive incentive grants of up to 15 per cent of the value of their loans. They will also receive technical assistance throughout the implementation process.
This new financing falls within the EU4Business-EBRD credit line. This program is active across the Eastern Partnership region, and focuses on incentivizing investments in highly advanced technologies and processes, and encouraging best practice to ensure that small and medium-sized enterprises (SMEs) can increase their competitiveness.
