DCFTA Initiative East
The Deep and Comprehensive Free Trade Area (DCFTA) Initiative East aims to strengthen economic development in the countries which have signed an association agreement with the EU - namely Georgia, Moldova and Ukraine - by providing targeted financial and technical support to small and medium-sized enterprises (SMEs) in these three countries.
- Enhancing access to finance in the form of improved lending terms and conditions;
- Supporting micro-finance institutions to provide financing to local micro-enterprises
- Providing targeted finance and technical assistance to priority value chains in agri-food sector.
- Small and medium-sized enterprises
The initiative strengthens the capacity of the private sector, in particular SMEs, to compete in local and international markets, by:
- Supporting local micro-enterprises by providing financing to local microfinance institutions;
- Providing technical assistance to counterpart financial intermediaries (including microfinance institutions) via institutional and capacity-building activities and advisory services to SMEs at regional and local level, by promoting rural development with a particular focus on agri-food value chain development;
- Offering SME loan guarantees to local banks and other financial intermediaries, enabling them to improve lending terms and conditions and thus providing wider access to finance for SMEs. This pillar of the Initiative is implemented with the European Investment Fund (EIF).