EIB to allocate 100 million euros to SMEs in South Caucasus region

The European Investment Bank (EIB), the lending arm of the European Union, kicked off €100 million MSME Outreach Initiative for the Southern Caucasus to foster MSME lending by medium and smaller size banks, Report informs, citing EIB.

EIB has strengthened its long-term cooperation with Credo Bank, Georgia’s fifth-largest commercial bank, by signing a new five-year loan agreement worth GEL 28.8 million (€10 million). This is the first such arrangement by the EIB worldwide, setting a precedent for other countries.

Signed in late 2022, the initiative improves inclusion and access to finance for underserved MSMEs in the Southern Caucasus by helping the medium and smaller size banks of Armenia, Azerbaijan and Georgia broaden their service offerings.

Around 26 500 jobs will be created or maintained in the MSME sector of the Southern Caucasus region, fuelling private sector-driven growth and promoting social inclusion through finance in the form around 6 150 sub-loans for MSMEs.