The European Investment Bank (EIB), the long-term lending institution of the EU, recently loaned EUR 15 million (USD 16.8 million) to Joint Stock Company Liberty Bank of Georgia. The loan is intended to increase the financing of small and medium-sized enterprises (SMEs) in Georgia. It is part of the EU4Business Initiative, which provides advisory services, financing and training to SMEs in Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.
The agreement supports a change in strategy that Liberty Bank undertook in 2017, whereby it is increasing its outreach to microenterprises and SMEs, particularly in rural areas. The Deputy General Director of Liberty Bank, Levan Tkhelidze, said, “This is yet another major milestone in the development of Liberty Bank and a very strong incentive for the management team to deliver on our stated business objectives. Liberty Bank is uniquely qualified to promote SME lending, and [this] EIB loan will deepen our ties with entrepreneurs throughout the country.”
Liberty Bank operates a network of 360 branches and 550 automated teller machines. With total assets of GEL 7 billion (USD 700 million) and capital assets of GEL 48 million (USD 16.7 million), it has about 4,600 employees and 1.7 million customers. Additionally, the bank is the sole distributor of social benefits and pensions for the government of Georgia.
Created in 1958, EIB supports projects in EU member states, likely future member states and other EU partner countries, principally in the area of SMEs. As of 2018, EIB reported total assets of EUR 556 billion (USD 621 billion) and a loan portfolio of EUR 451 billion (USD 504 billion).
EU4Business was created in 2009 and its 43 active projects comprise a portfolio of EUR 320 million (USD 353 million) as of 2018. Since the inception of the program, its partner banks have lent approximately EUR 1.96 billion (USD 2.2 billion) to approximately 66,000 SMEs.
Sources and Additional Resources
The Financial news release
https://www.finchannel.com/society/lifestyle/77610-eib-approves-eur-15-mln-loan-to-jsc-liberty-bank
Liberty Bank homepage
https://libertybank.ge
European Investment Bank homepage
https://www.eib.org
EU4Business Initiative
http://www.eu4business.eu
MICROCAPITAL BRIEF: European Investment Bank (EIB) Lending $5.6m to FONDESA, BANFONDESA to Increase Energy Efficiency Finance for Schools, MSMEs, Homes in the Dominican Republic
https://www.microcapital.org/microcapital-brief-european-investment-bank-eib-lending-5-6m-to-fondesa-banfondesa-to-increase-energy-efficiency-finance-for-schools-msmes-homes-in-the-dominican-republic/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: UN, EU Supporting SMEs Involved in Fisheries in Cambodia via Capfish-Capture Program
- MICROCAPITAL BRIEF: Bank of Maldives Borrowing $40m from ADB, JICA, OeEB, for Blue Economy, SMEs, Tourism
- MICROCAPITAL BRIEF: Uzpromstroybank (UzPSB) Borrowing $15m from EBRD for SMEs in Uzbekistan
- MICROCAPITAL BRIEF: EIB Lends Credo Bank $10m for MSMEs in Georgia
- MICROCAPITAL BRIEF: EBRD Purchases 5% Equity Stake in ProCredit from IFC, Increasing Exposure to SMEs in Europe, Ecuador
