The European Fund for Southeast Europe (EFSE) has provided a senior loan of $10 million to the Bank of Georgia Group PLC for on-lending to micro and small enterprises (MSEs).
The funding will be distributed to MSEs through the Bank of Georgia Group’s dominant subsidiary, the Bank of Georgia – one of the country’s leading small-business lenders. This continued collaboration between the longstanding partners aims to support the Bank of Georgia in further expanding its outreach to MSEs, especially those in the tourism, trade, and agricultural sectors. It also contributes to the achievement of a key EU4Business priority in easing access to finance for small businesses.
"Together, we are investing in the success of Georgian entrepreneurship,” said EFSE Board Chairman Christoph Tiskens: “With its strong commitment to EFSE’s target group of MSEs and its extensive nationwide network, the Group has been a valuable partner in our joint effort to meet the financing needs of this key sector of the economy."
Kaha Kiknavelidze, Bank of Georgia Group CEO, said he was pleased once again to cooperate with EFSE in creating "a range of products for our MSE clients".
"Supporting small businesses with various types of financial services and solutions has always been an important part of our business, and EFSE has been our trusted partner in this regard since 2010. I would like to thank our partner for their contribution in supporting the further development of Georgian enterprises,” Kiknavelidze added.
The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission under the EU4Business initiative.
EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions.