...

Georgian National Bank introduces new tools to support SMEs financing

Finance Materials 6 July 2020 18:39
Georgian National Bank introduces new tools to support SMEs financing

BAKU, Azerbaijan, July 6

By Tamilla Mammadova - Trend:

The National Bank of Georgia (NBG) launched a new instrument to support small and medium-sized enterprises (SMEs) financing, the bank told Trend.

"SME liquidity supply tool consists of two components. The first is for commercial banks, which have the opportunity to receive liquidity support from the NBG against collateral of SME loan portfolio," said NBG.

According to the bank, the second tool is for microfinance institutions, which enables to attract funding from commercial banks with the support of the NBG within the established limits and criteria.

Along with successful measures to stop the spread of the pandemic, it has become a priority for the authorities to mitigate its negative impact on the economy, said the bank.

"From the perspective of central bank's functions, in this situation, it is important that the financial sector, banks and microfinance organizations continue to lend to companies and entrepreneurs without interruption, while not increasing the cost of credit resources due to liquidity risks," NBG noted.

---

Follow the author on Twitter: @Mila61979356

Tags:
Latest

Latest