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WB supports Georgian MSMEs and promotes digitalization of country’s economy

Finance Materials 12 May 2021 17:14 (UTC +04:00)
WB supports Georgian MSMEs and promotes digitalization of country’s economy

BAKU, Azerbaijan, May 12

Tamilla Mammadova – Trend:

World Bank’s (WB's) Board of Executive Directors approved 85 million euros in financing support for 6,000 micro, small and medium-sized enterprises in Georgia impacted by the COVID-19 pandemic, Trend reports via the WB.

The new "Relief and Recovery for Micro, Small and Medium Enterprises" (MSMEs) project aims to help businesses and create jobs by expanding and strengthening programs that support MSMEs and by promoting the digitalization of Georgia’s economy.

The project aims at alleviating the financial constraints of firms and helping them adjust their business to a post-COVID-19 scenario. One component of the project will strengthen and expand MSME support programs implemented by Produce in Georgia agency. The direct support for micro and small firms will come in the form of grants offered by Produce in Georgia agency's micro and small entrepreneurship support program.

Small and medium-sized enterprises (SMEs), on the other hand, will be eligible for support through co-financing of interest payments under the "Produce in Georgia" program, which will reduce their borrowing costs and address immediate liquidity constraints.

SMEs will also benefit from access to partial credit guarantees through financial institutions, which are designed to address high collateral requirements and heightened risk aversion of financial institutions.

The project will also help strengthen the country’s financial infrastructure and increase the use of digital financial services; will also support the design and provision of technical assistance to firms to adjust to the new normal, via the adoption of relevant managerial, digital and other COVID-proofing practices.

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