Baku, Azerbaijan, August 1
By Tamilla Mammadova – Trend:
European Bank for Reconstruction and Development (EBRD) has allocated $140 million to Georgian banks within EU4Business program, Trend reports with reference to commersant.ge.
Bank of Georgia has received $60 million, TBC Bank - $60 million, and ProCredit Bank and Bazis Bank received $10 million each.
The European Union’s EU4Business initiative is an umbrella initiative that covers all EU activities supporting SMEs in the Eastern Partnership countries. The EU4Business credit line in Georgia is a joint initiative of the EU and EBRD, which is intended to finance investments in small and medium-sized businesses. The program allows Georgian businessmen to take advantage of the wide and comprehensive opportunities provided by EBRD.
In order for the Georgian businesses to participate in the program, their production processes and product quality must comply with a number of EU directives, which in most cases require investment in new production lines, new equipment and new technologies.
The program includes lending to local partner banks, providing up to 15 percent of the approved loan after successful completion of the project, and free technical assistance from an international team of experts for SMEs.
EU4Business Credit Line allows local SMEs to easily obtain financing, upgrade production lines, improve product quality and increase potential of export in the EU market. The program covers a wide range of the sectors of the economy including. among others, agriculture, hotels and restaurants, construction, medical sector, food production, and waste recycling.