The European Investment Bank (EIB) has signed a guarantee agreement financially supported by the European Union with TBC Bank, enabling it to extend financing to the local private sector on favourable terms, including with reduced collateral requirements.
The EIB guarantee will unlock over €31 million of financing for small and medium-sized enterprises (SMEs) in Georgia by providing 80% of the coverage of potential losses on each loan originated by TBC Bank. The support has a specific focus on regional entities, women-led businesses, young entrepreneurs and start-ups.
The guarantee is under the SME Access to Finance Initiative supported by the European Fund for Sustainable Development, a joint programme by the EIB and the European Commission aiming to enhance access to finance for SMEs.
The guarantee operation also contributes to sustainable economic recovery under the European Union’s flagship Economic and Investment Plan for the Eastern Partnership, which aims to help 80,000 SMEs in Georgia.
“To be implemented by one of Georgia’s leading banks, TBC Bank, this guarantee facility will promote financial inclusion for underserved SMEs and increase their contribution to the economy,” said EIB Vice-President Teresa Czerwińska, who is responsible for the Bank’s activities in Georgia. “Supporting the growth of enterprises and diversification of the Georgian economy is particularly important as the country has just recently been granted EU candidate status.”
