Page 30 - GEORptFeb19

8.1.5 SMEs finance
EBRD assists SMEs in Georgia under Trade Ready programme
The European Bank for Reconstruction and Development (EBRD) on October 16 announced it has launched its trade support initiative Trade Ready in Georgia to help the country’s small and medium sized enterprises (SMEs) win their way to improving their competitiveness and succeed on international markets.
The EBRD is thus boosting the support it already extends to the country's SME entrepreneurs, while other international financial institutions also work in the same direction.
The initiative offers trade finance training and trade-related business advice for SMEs, networking opportunities with local banks, as well as policy dialogue to facilitate improvements in the regulatory environment. The support initiative is already operational in Serbia and will be implemented gradually in other EBRD countries.
Trade Ready will extend the outreach of the EBRD’s pioneering Trade Facilitation Programme (TFP) and dedicated business advice through the Bank’s Small Business Initiative.
While banks can expect to attract new clients with the introduction of new trade finance products, businesses will benefit from better access to finance and the chance to expand to international markets.
Earlier in March this year, the EBRD and the European Union extended their support to SMEs in Georgia, Moldova and Ukraine, with a total of almost €1.1bn in credit lines and trade finance and €58.3mn in EU grants.
The EU4Business-EBRD credit line has allowed SMEs in sectors such as manufacturing, retail, agriculture and food processing, transport, services and healthcare to improve their products, strengthen their export potential and adopt EU standards and technical norms, she explained.
Other international financial institutions extended their support for Georgia’s SME sector.
The European Investment Bank (EIB) has announced that it has extended a €30mn loan to Georgia’s largest bank TBC Bank to improve access to financing for local small and medium sized enterprises (SMEs). The loan is part of the EU4Business initiative, designed to support SMEs in the six Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine). Funding within the scope of the project is expected to benefit approximately 600 Georgian SMEs.
Financial intermediation marked significant expansion over the past year in Georgia (+19.4% y/y as of August). But the banks particularly focus on mortgage lending. Robust GDP growth, at over 5% y/y in the past three quarters ending June, has contributed to higher investor confidence.
SMEs make up more than 90% of Georgian businesses and are thus a critical component of economic growth and development.
It is the EIB’s fourth loan provided to TBC Bank since 2012, with the credits totalling €85mn.
30 GEORGIA Country Report February 2019 www.intellinews.com