BAKU, Azerbaijan, Dec.8
By Tamilla Mammadova – Trend:
The Georgian banking sector is robust and well-capitalized, but also appears to be very concentrated, Proparco, the leading European Development Finance Institution (Groupe Agence Française de Développement) told Trend.
According to the Proparco, the country’s two main commercial banks accounting for around 75 percent of the banking assets.
"Furthermore, regulation and prudential measures implemented by the National Bank of Georgia (capital and liquidity requirements) are considered strong and have been effective in mitigating shocks brought on by COVID-19," the Proparco said.
As the company noted, despite this favorable environment, many SMEs, which are the backbone of the economy for their contribution to employment (around 2/3) and economic growth, nonetheless face limited access to finance.
"Supporting players in the banking market, which target SME segments, is thus central to Proparco’s strategy in Georgia," the source noted.
Proparco has been working for 40 years to promote sustainable economic, social, and environmental development. Proparco participates in financing and supporting companies and financial institutions in Africa, Asia, Latin America, and the Middle East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health, education. It finances companies whose activities contribute to creating jobs and decent incomes, the provision of essential goods and services, and the fight against climate change.
---
Follow the author on Twitter: @Mila61979356