The European Investment Bank (EIB) will fund Georgian microfinance company Crystal with €4.1 million to support Georgian micro enterprises with fewer than 10 employees.
Micro enterprises will receive loans up to €25,000 which will be oriented to fund women, young people and entrepreneurs living in rural areas. As a result, about 10,000 entrepreneurs should receive long-term financing.
“This microfinance operation will support microbusinesses, representing the most vulnerable segment of the Georgian economy. This type of funding… helps entrepreneurs develop their activities, which ultimately boost the economy and general wellbeing in the country,” said EIB Vice-President Vazil Hudák.
“Today’s partnership with Crystal aims at assisting an additional 10,000 local entrepreneurs to start and develop their businesses and create additional income and jobs in the country”, said EU Ambassador to Georgia Carl Hartzell.
“We are delighted to start long-term cooperation with the European Investment Bank…This agreement aims to reach and support local entrepreneurs and consists of the financing of micro and small enterprises operating in Georgia”, said the CEO of Crystal Ilia Revia.
Over 30,000 Georgian small and medium businesses have benefited from EU funding or technical assistance so far.
Financing Crystal is the second EIB microfinance investment in Georgia under the framework of the EU4Business initiative, after the investment in Credo Bank in November 2017. Both initiatives are partially financed by the Neighbourhood Investment Facility of the European Union.
EU4Business is an initiative of the European Union, which aims to help SMEs in the six countries of the Eastern Partnership (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) to finance their development and increase economic growth.
EU4Business support is delivered by the EIB together with other organisations such as the European Bank for Reconstruction and Development.
