BAKU, Azerbaijan, January 31. The European Investment Bank (EIB) has entered into a guarantee arrangement backed by the EU with TBC Bank, enabling it to extend financing to the local private sector on favourable terms, including with reduced collateral requirements, Trend reports.
The EIB guarantee unlocks financing of small and medium-sized enterprises (SMEs) in Georgia in the amount of more than 31 million euros by providing 80 percent coverage of potential losses on each loan issued by TBC Bank.
It will play a role in fostering inclusive economic growth in the country, particularly emphasizing support for regional entities, women-led businesses, young entrepreneurs, and startups.
The guarantee is under the SME Access to Finance Initiative supported by the European Fund for Sustainable Development.
At the same time, the guarantee operation additionally contributes to the sustainable economic recovery as part of the European Union’s flagship Economic and Investment Plan for the Eastern Partnership.
The goal of this plan is to support 80,000 small and medium-sized enterprises in Georgia.
Meanwhile, the European Investment Bank (EIB) is the long-term financing institution of the EU, owned by its member states.
It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and SMEs.