TBILISI

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 ex-Soviet Georgia in cooperation with TBC Bank, one of the largest in the country.

The EBRD is providing a 25 million euro loan for on-lending to local firms, with at least 70 percent of that aimed at financing investments in green technologies. The EU is complementing the loan with grants and free technical assistance for borrowers under its EU4Business initiative.

The package will allow companies to upgrade their products and services and bring them in line with EU standards, modernise their production to boost their domestic competitiveness and operate more successfully on foreign markets.

The support is being extended under the EU4Business-EBRD credit line, a joint financing instrument available in Armenia, Georgia, Moldova and Ukraine, which aims to make local firms greener and more competitive. The initiative is designed to support Georgia’s SMEs align their businesses with EU directives, increasing their product and service quality and enhancing their environmental responsibility.

Since the launch of the programme in 2016, 170 Georgian companies have benefited from the scheme, in sectors ranging from manufacturing and agriculture to hospitality and medical services.

The EBRD is a leading institutional investor in Georgia. To date, it has invested more than 4 billion euros in 265 projects in the financial, corporate, infrastructure and energy sectors, with 79 per cent of those investments in the private sector.

TBC Bank is one of the two biggest commercial banks in Georgia and is listed on the London Stock Exchange. It offers a wide range of traditional financial services and innovative digital solutions. It has a strong presence in its major business segments – retail banking, MSME finance and corporate banking.

In March, Fitch Ratings revised the outlook on TBC Bank to “stable” from “negative”, while affirming its long-term Issuer Default Ratings (IDRs). The agency said that the revision of the outlook to “stable” reflected “reduced pressure on the bank’s credit profile from the pandemic and contraction of the Georgian economy.”