The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to US$ 100 million to Bank of Georgia (BoG) for on-lending to local private businesses to address the economic impact of the coronavirus pandemic.
BoG will provide longer-term loans to firms with a special focus on micro, small and medium-sized enterprises (MSMEs) that form an important segment of the Georgian economy. Supporting these companies is a priority for the EBRD now more than ever.
BoG has been financing businesses in all sectors in Georgia for almost 30 years. The bank is listed on the London Stock Exchange through its parent company, Bank of Georgia Group PLC.
The EBRD is stepping up efforts to help combat the impact of the coronavirus and support the recovery. The Bank is committed to providing support worth €21 billion over 2020-21 to the 38 economies where it currently invests. The support includes a Resilience Framework for existing clients, offering short-term liquidity and working capital.
Catarina Bjorlin Hansen, EBRD Regional Director for the Caucasus, said: “Bank of Georgia is our longstanding partner and well placed to channel EBRD funds to companies that are going through this unprecedented period of volatility. Getting financial help to businesses and providing uninterrupted lending is essential for keeping the economy going.”
Archil Gachechiladze, Bank CEO, commented: “I am very pleased to see that the EBRD continues to be Bank of Georgia’s strong and reliable partner in providing both local and foreign currency funding for our micro, small and medium-sized business and corporate clients. This is our first cooperation with the EBRD in 2020, which will help us to overcome the challenges to support our clients during the global pandemic and the current economic downturn. Long-term facilities of this kind are increasingly essential for us to continue to offer the most-needed financial products to our business clients during the crisis. I would like to thank our partner for being a reliable supporter of the Georgian economy and look forward to working with the EBRD on many more successful deals in the future.”
The EBRD is a leading institutional investor in Georgia. Since the start of its operations in the country, the Bank has invested over €3.8 billion in 251 projects in the financial, corporate, infrastructure and energy sectors, with 87 per cent of these investments in the private sector.
