A new USD 100 million financing package organised under the EU4Business programme will enable the European Bank for Reconstruction and Development (EBRD) to provide further support to Georgian SMEs.
The funding, in the national Lari currency, will be fed through TBC Bank, one of Georgia’s major financial entities. USD 60m of the amount is designed to help SMEs comply with the requirements of the Deep and Comprehensive Free Trade Agreement (DCFTA) Georgia has with the EU. USD 20m is aimed at supporting the Women in Business programme, helping SMEs run or managed by women. Another USD 20m credit llne will be dedicated to other local SMEs.
The project will also advise SMEs on how to enhance their technical, managerial, market knowledge and investment project development capacity.
The funding will enable TBC to increase its medium-term lending to the SME sector in Georgia, while in turn strengthening the bank, which has a healthy reputation in the early transition market in Georgia, the EBRD points out.
In addition, TBC will receive a USD 6m financing credit line over six years to develop longer-term local currency financing to SMEs in different business segments across the country.
The EBRD-EU4Business credit facilities will support the modernisation of local SMEs in helping bring about improvements in product quality and upgrading services to meet EU standards. This in turn will lead to increased competition and the promotion of entrepreneurship in Georgia.