EBRD and EU Partner with ProCredit Bank to Boost Georgian MSMEs with $10 Million Loan for Green Investments

EBRD and EU Partner with ProCredit Bank to Boost Georgian MSMEs with $10 Million Loan for Green Investments

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are intensifying their support for micro, small, and medium-sized enterprises (MSMEs) in Georgia through a partnership with ProCredit Bank. ProCredit Bank, a trusted EBRD partner in Georgia, will receive a $10 million loan to be on-lent to local firms. These funds will help Georgian MSMEs upgrade their products and services to meet EU standards, enhance competitiveness, and seize international trade opportunities. A significant portion of the loan will be dedicated to green technology investments, enabling borrowers to improve environmental practices and product quality. Successful borrowers can receive incentive grants and technical assistance funded by the EU. This initiative aligns with Georgia’s candidacy for EU membership and supports the country’s economic growth and compliance with international standards.

(PRESS RELEASE) LONDON, 29-Dec-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for micro, small and medium-sized enterprises (MSMEs) in Georgia via ProCredit Bank. One of the leading banks in the country and a longstanding EBRD partner, ProCredit will receive US$ 10 million (€9 million) to on-lend to firms across the country.

These funds will be used to help local MSMEs modernise their products and services to meet EU standards, boost their competitiveness and seize international trade opportunities. As at least 70 per cent of the loan is expected to fund investments in green technologies, the borrowers will be able to improve environmental practices and resource efficiency, and boost product quality, health and safety measures.

Borrowers who successfully implement their investments will be eligible to receive incentive grants of up to 15 per cent of the value of their loans. They will also receive technical assistance throughout the implementation process. The grant and technical assistance components will be funded by the EU under its EU4Business initiative.

This new financing falls within the EU4Business-EBRD credit line and builds on ProCredit Bank’s track record of disbursing nearly US$ 23.4 million (€20 million) via that credit line over previous years.

In December 2023 Georgia was granted candidate status to join the EU. This new financing will further support local firms’ compliance with European and international standards, boosting economic growth and supporting the country in achieving the EU Economic Investment Plan targets.

The EU4Business-EBRD credit line programme is active across the Eastern Partnership region, which focuses on incentivising capex investments in highly advanced technologies and processes, and encouraging best practice to ensure that small and medium-sized enterprises (SMEs) can increase their competitiveness.

ProCredit Bank in Georgia is part of the international ProCredit group of development-oriented commercial banks in south-eastern Europe, South America and Germany. Frankfurt-based ProCredit Holding owns the group. ProCredit banks promote transparent and inclusive financial sectors. The bank’s business model prioritises developing SMEs, and its business strategy includes actively supporting sustainability.

ProCredit Bank, which has been operating in Georgia for 25 years, upholds European banking standards. Responsible banking practices and financing provided by the bank enable SMEs to scale up, innovate and contribute to creating employment opportunities.

To date, the EBRD has invested more than €5 billion in 289 projects in the financial, corporate, infrastructure and energy sectors in Georgia, with 82 per cent of those investments in the private sector.

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SOURCE: EBRD