CEB to support job creation in Georgia

The Council of Europe Development Bank (CEB) has approved a €25 million loan to ProCredit Bank Georgia to provide a credit line to small and medium-sized enterprises (SMEs).

SMEs play an important role in Georgian economy, particularly in agriculture, trade and manufacturing. Almost half of the total workforce is currently employed in SMEs, which generate jobs in a country where the unemployment rate is higher than the European Union average. In recent years, the government has taken a number of measures to support the SME sector. Nevertheless, access to financing remains an issue for many small businesses.

The CEB loan to ProCredit Bank will be on-lent to Georgian SMEs to finance the acquisition of fixed assets, the construction or extension of business premises, and the provision of working capital. It is estimated that more than 300 SMEs will benefit from the funds in a variety of sectors, including retail trade, manufacturing, tourism and services.

CEB Governor Rolf Wenzel said: “Unemployment rates remain high in parts of Europe, particularly among young people. Against this background, it is crucial to support small businesses and entrepreneurial activity as a means of creating new jobs. With this loan, hundreds of small Georgian businesses and local entrepreneurs with little or no access to financing can obtain the funds they need in order to develop or expand their own business.”

By channelling financing to businesses, the CEB loan is expected to strengthen the competitiveness of SMEs, contribute to job creation and preservation, support the development of the private sector, and boost economic growth.

Original source: CEB
Published on 09 July 2019