BAKU, Azerbaijan, December 29. The European Bank for Reconstruction and Development (EBRD) and the EU have allocated some $10 million to Georgia's ProCredit Bank to on-lend to firms across the country, Trend reports.
These funds will help local small businesses improve their products and services to meet EU standards. It will also make them more competitive and open up opportunities for international trade.
Most of the loan, at least 70 percent, will be used for eco-friendly technologies. This means businesses can improve how they care for the environment, use resources wisely, and make safer and better-quality products.
If borrowers successfully carry out their investments, they can get bonus grants worth up to 15 percent of their loan value, the EBRD noted. Moreover, they will get help with the technical stuff as they go along. The EU will cover the cost of these bonuses and technical support through its EU4Business initiative.
This fresh funding is part of the EU4Business-EBRD credit line and adds to ProCredit Bank's history of distributing almost $23.4 million through that credit line in the past years.
So far, the EBRD has put over 5 billion euros into 289 projects in Georgia, covering areas like finance, corporate ventures, infrastructure, and energy. Notably, 82 percent of these investments have gone into supporting the private sector.