EIB Global and Bank Of Georgia Sign €50 Million Loan Agreement to Support Small Businesses

Under the agreement, the EIB and Bank of Georgia will direct a minimum of 30% of the loan towards green investments. It is the first EIB loan intermediated by Bank of Georgia with such a thematic dedication. The loan is complemented by support under the Greening the Financial Systems technical assistance program, funded by the German government’s International Climate Initiative.

The loan is being provided by EIB Global (the arm of the EIB working beyond the European Union) and is the first tranche of a €120 million EIB loan program that is expected to benefit more than 160 companies and sustain over 14 000 jobs. Bank of Georgia will double the EIB commitment by lending an equivalent amount of its own resources.

The loan will improve access to finance with long-term funding on attractive terms and conditions, with the option to make such funding available in local currency to help businesses avoid exchange rate risks.

The loan contributes to sustainable economic recovery under the European Union’s flagship Economic and Investment Plan (EIP) for the Eastern Partnership, which aims to help 80 000 SMEs. The operation forms part of the EIB’s own-risk contribution to the objectives of the European Fund for Sustainable Development Plus (EFSD+).