As per the latest information, one of the leading bank of Georgia ProCredit is all set to get support from the European Union as well as from the EBRD ( European Bank For Reconstruction and Development). This help is being seen as a major boost for the economy of Georgia by financial experts.
The European Bank for Reconstruction and Development and the European Union has make this announcement that they would provide a help amount of US$ 10 million (€9 million) to ProCredit Bank, one of Georgia’s leading banks to on-lend to micro, small and medium-sized enterprises (MSMEs) across the country.
It is notworthy that these funds by the EU and EBRD will be used to help local MSMEs (Micro, small, and medium enterprises) to modernise their products and services to meet EU standards, boost their competitiveness and seize international trade opportunities.
This has also become necessary as the country is making an effort to become the full feldged member of the Europen Union at the same time at least 70 per cent of the loan is expected to fund investments in various filed, including green technologies, the borrowers will be able to improve environmental practices and resource efficiency and boost product quality, health, and safety measures as well.
It is to be specifically mentioned that Borrowers successfully implementing their investments will be fully eligible to gain incentive grants of up to 15 per cent of the value of their loans. They will also get additional technical assistance throughout the implementation process.
It is to be added that this new financing falls within the EU4Business-EBRD credit line. This programme is active across the Eastern Partnership region of the country.
It will further focus on incentivising investments in highly advanced technologies and processes and encouraging best practices to ensure that small and medium-sized enterprises (SMEs) can increase their competitiveness.
The financial and economic experts of Georgia welcome this move of the EU and EBRD to help Georgia. They also said that this helped Georgia to align with European integration.
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