BAKU, Azerbaijan, Jan. 29
By Tamilla Mammadova – Trend:
The Asian Development Bank (ADB) and Georgia's Credo Bank (Credo) signed a $4 million loan to support agricultural micro, small and medium-sized enterprises, low-income farm households, small businesses run by women, and agri-tourism in Georgia, Trend reports via the ADB.
The local currency-denominated three-year facility primarily focuses on the finance of low-income farm households and women-MSMEs in response to the COVID-19 pandemic impact. With this loan, ADB provides a total of up to 74 million lari debt and technical assistance funding to the bank and its customers.
"Around 40 percent of Georgia’s active working-age population are employed in agriculture. Most of them are self-employed and have limited access to social welfare support systems. ADB’s financing will help Credo to provide additional lending to its clients in the sector to mitigate the resurgence of poverty incidence caused by the pandemic", reads the press release published by the ADB.
“We are proud to sign yet another strategically important transaction with our long-term partner - the Asian Development Bank. The loan will be directed to finance activities of farmers during upcoming high season, to ease the negative impact of the COVID-19 and to facilitate uninterrupted agricultural production in the country,” said, Zaza Pirtskhelava, General Director of Credo Bank.
Credo Bank is the leading bank in the Georgian microfinance market in terms of countrywide presence and the number of clients. It operates 75 service centers and supports more than 336,000 customers across Georgia. Credo Bank is owned by a consortium of international shareholders, the social impact investors - Access Microfinance Holding AG, ResponsAbility Investment Management AG, and Triodos Investment Management BV.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. Established in 1966, it is owned by 68 members - 49 from the region.
As of December 2020, Credo Bank has served 336,748 borrowers in Georgia. More than half of its 2,486 workforces are women. The bank has over 219,957 individual borrowers in the agricultural sector, 53 percent of whom are female borrowers.
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