Page 38 - GEORptDec19

8.1.3​ NPLs
Georgian​ banks have weathered the depreciation well, with non-performing loans (NPLs) at a manageable rate of 2.6% of total loan portfolio​ ​at end-2018​, compared with a ratio of 3.4% at end-2016, according to the National Bank of Georgia. NPLs account for around 3% of total lending. Banks are well capitalised and positioned to absorb a moderate deterioration in their loan portfolios, according to Fitch ratings agency.
8.1.4 ​SMEs finance
EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and Germany’s ProCredit Group are providing an additional €800mn to innovative small and medium-sized companies (SMEs), bringing the total funding to €1.62bn for companies in eleven countries, the European Commission said on July 15.
The financing will be available through ProCredit banks in Albania, Bosnia and Herzegovina, Bulgaria, Georgia, Germany, Greece, Moldova, North Macedonia, Romania, Serbia and Ukraine.
“This continued and increased level of support from the EU will make a tangible difference to thousands of people with innovative business ideas in need of a financing, adding to the 2,000 SMEs that have already benefited from this scheme.” European Commission's Vice-President Jyrki Katainen, responsible for jobs, growth, investment and competitiveness said in the statement.
Agreements with ProCredit Group have already supported around 2,000 innovative SMEs, mainly in the manufacturing as well as in the wholesale and retail trade sectors.
These agreements were signed under the European Commission's InnovFin initiative, backed by the EU's research and innovation programme Horizon 2020.
The InnovFin initiative enables participating banks to provide loans to innovative companies with the support of a guarantee provided by the EIF. EIF is part of the European Investment Bank and its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them access finance.
8.1.5 ​Bank news
First ever EBRD Eastern Partnership Investment Summit announced
The Eastern Partnership countries of eastern Europe and the Caucasus are becoming more attractive to foreign investors after rolling out reforms that have increased their economic potential, the president of the European Bank for Reconstruction and Development (EBRD) said on November 22. ​At a meeting that brought together political leaders from Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, Suma Chakrabarti described the Eastern Partnership countries as “rich in promise for investors”.
At the inaugural EBRD Eastern Partnership Investment Summit at the Bank’s London headquarters, he said: “I want to encourage all the investors and
38​ GEORGIA Country Report​ December 2019 ​ ​www.intellinews.com