Credo Bank, a microfinance institution in Georgia, recently accepted a local-currency loan in an amount approximately equivalent to USD 11.8 million from the EU’s European Investment Bank (EIB). Credo will use the funds to on-lend primarily as working capital for people living in rural areas, with the aim of lessening the impacts COVID-19 has had on food production in particular and the country’s agricultural sector in general.
Carl Hartzell, the EU Ambassador to Georgia, said that, “improving living conditions in rural areas is an important priority of EU-Georgia cooperation. This loan will have a strong focus on the local agricultural sector, which is key from a local food production and employment perspective.”
The loan is the second under the EIB’s Georgia Outreach Initiative, which is intended to increase access to finance for small and medium-sized enterprises (SMEs). This loan is also part of the EU’s efforts to alleviate the impact of the COVID-19 pandemic in 100 countries. EIB has pledged EUR 6.3 billion (USD 7.5 billion) to this effort.
The goal of Credo Bank, which was founded in 1997, is to serve SMEs, particularly in rural areas. The bank serves 270,000 customers via 68 service centers in Georgia as of 2018. Its owners are Germany-based Access Microfinance Holding, Switzerland-based responsAbility Investments and Triodos Investment Management of the Netherlands.
Founded in 1958, EIB is “focused on innovation, SMEs, infrastructure and climate,” primarily in EU member states and potential future member states. During 2019, the institution disbursed EUR 48 billion (USD 57 billion), about 90 percent of which it deployed within the EU.
By Nathan Kiplagat, Research Associate
Sources and Additional Resources
EIB news release
https://www.eib.org/en/press/all/2020-216-team-europe-the-eib-s-lends-eur-10-million-to-credo-bank-under-its-georgia-outreach-initiative-to-support-msmes
Credo Bank homepage
http://credo.ge
EIB homepage
https://www.eib.org
EIB Facts and Figures 2019
https://www.eib.org/attachments/general/the_eib_group_facts_and_figures_2019_en.pdf
More news on EIB from MicroCapital
https://www.microcapital.org/?s=EIB
More news on Credo Bank from MicroCapital
https://www.microcapital.org/?s=credo+bank
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