In March 2021, business loans issued by Georgian commercial banks to small and medium-sized enterprises (SMEs) totaled GEL 8,119,123, 000, up from GEL 7,901,908, 000 from February 2021. Monthly comparison shows 2.7% growth.
Out of total GEL 8,119,123, 000 business loans, issued by commercial banks on SME sector as of April 1, GEL 4,441,850, 000 was shared by legal entities. The remaining GEL 3,677,273, 000 was issued to households. Provided figures incorporate lending in both, national and foreign currencies. The data is published by the National Bank of Georgia.
As for February 2021, when SME credit portfolio of the banks stood at GEL 7,901,908, 000 in national and foreign currencies, GEL 4,310,731, 000 has been issued to legal entities and GEL 3,591,177,000 to households.
In his interview with BM.GE, Mikheil Tchelidze, President at Georgian Small and Medium Enterprises Association (GSMEA) stated that the number of small companies operating in Georgia has been reduced by 30%. In a meantime, employment rate at the mentioned sector decreased by 18%.
As previously reported by BM.GE on May 11, the World Bank’s Board of Executive Directors approved EUR 85 million financing support to micro, small and medium sized enterprises in Georgia impacted by the COVID-19 pandemic. The new Relief and Recovery for Micro, Small and Medium Enterprises (MSMEs) project aims to help businesses and create jobs by expanding and strengthening programs that support MSMEs and by promoting digitalization of Georgia’s economy.
“Through this latest support package, the World Bank will boost job creation and support firms that are the backbone of Georgia’s economy and key to a resilient recovery," said Sebastian Molineus, World Bank Regional Director for the South Caucasus. “This includes helping firms gain easier access to finance and funding investments in financial infrastructure that will promote technology adoption and the use of digital financial services.”
The project will support at least 6,000 MSMEs across the country, increasing businesses’ chances of survival, preserving productive assets, and helping firms adjust to the new economic and public health challenges.
