BAKU, Azerbaijan, September 15. The European Bank for Reconstruction and Development (EBRD) and the EU is extending a local currency loan of $20 million equivalent to leading Georgian bank TBC for on-lending to local firms, Trend reports citing the EBRD's press service.
The funding will assist Georgian micro, small and medium-sized enterprises (MSMEs) in purchasing machinery, including green technologies, to raise the quality of their products to EU standards and increase their competitiveness.
"Borrowers will receive grant incentives worth up to 15 percent of the loan amount and benefit from international expertise, funded by the EU under its EU4Business initiative," the Bank said.
This financing comes under the EU4Business-EBRD Credit Line – a flagship program that helps local companies improve their standards and product quality to boost competitiveness at home and abroad.
"In addition, the EBRD is stepping up its support to Georgian exporters and importers by increasing TBC’s trade finance limit by US$ 5 million to US$ 58 million under its Trade Facilitation Programme (TFP)," the EBRD added.
Notably, the European Bank for Reconstruction and Development is a leading institutional investor in Georgia, which has invested more than 5 billion in 270 projects throughout the country.