The European Investment Bank Group and the Bank of Georgia have signed an agreement to supply a €60 million credit line for loans to small and medium-sized enterprises.
The sum will improve access to finance for over 100 businesses, particularly those which are affected by the COVID-19 crisis.
The InnovFin Guarantee covers 50 per cent of every loan disbursed by the Bank of Georgia and targets small and medium-sized enterprises and mid-caps that require investment and working capital to finance research, development and innovation activities, says the EIB.
Moreover, as a response to the coronavirus crisis, the guarantee also covers 80 per cent of loans provided by the Bank of Georgia to SMEs and mid-caps impacted by the coronavirus crisis for their working capital needs.
This operation is covered by the EU4Business Initiative.
„Addressing the economic well-being of smaller innovative businesses is a key element of the EIB Group's response to the COVID-19 crisis,” said EIB Vice-President Lilyana Pavlova.
„Small and medium businesses are key to Georgia’s economic development, and many of them have been hit hard by the COVID-19 crisis. We are very happy that the European Union, via our bank the EIB, has been able to facilitate further access to finance to help them overcome current challenges and to innovate and develop for the future,” said EU Ambassador to Georgia Carl Hartzell.
The guaranteed agreement is supported by InnovFin SME Guarantee Facility which was established under the “EU InnovFin Finance for Innovators” initiative developed under Horizon 2020, the EU Framework Programme for Research and Innovation.
It provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million in order to improve access to loan finance for innovative SMEs and small mid-caps (no more than 499 employees).
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