The European Investment Bank (EIB) and the European Investment Fund (EIF) – jointly the EIB Group – will allocate €100 million in loans to small and medium-sized enterprises (SMEs) in Georgia, Moldova and Ukraine. The EIB Group signed the first guarantee agreements with ProCredit Holding and its subsidiaries under the EU4Business initiative today.
These agreements will allow the ProCredit banks in these countries to facilitate access to finance for local SMEs by providing a 70 percent guarantee on each loan and subsequently extend financing at favourable conditions, including reduced collateral requirements.
The three guarantee transactions are expected to unlock additional financing to small and medium businesses and ultimately to sustain jobs and new business opportunities in Georgia, Moldova and Ukraine. These guarantees are funded by the European Union through the Neighbourhood Investment Facility in the context of the EU4Business initiative.
“Support for SMEs is one of the EIB Group’s priorities because by funding them we are boosting economic growth, innovation and employment,” said EIB Vice President Vazil Hudak, who is responsible for oversight in Ukraine and Georgia. “These guarantee agreements with our longstanding partner Procredit Holding and its subsidiaries will help us to reach SMEs in the countries that have signed an Association Agreements with the EU, increasing access to crucial long-term financing in order to help them continue to develop new projects and to generate growth,” he added.
