Georgia: EIB Global and TBC Bank sign a guarantee agreement enabling over €31 million to support businesses

• The guarantee agreement with TBC Bank will make it easier for local businesses to access finance with attractive terms and conditions.
• The guarantee will focus on regional entities, women-led businesses, young entrepreneurs and start-ups.
• The guarantee comes under the EFSD SME Access to Finance Initiative, a joint EIB-European Commission programme that aims to enhance access to finance for underserved small businesses.

The European Investment Bank (EIB) has signed a guarantee agreement financially supported by the European Union with TBC Bank, enabling it to extend financing to the local private sector on favourable terms, including with reduced collateral requirements. The EIB guarantee will unlock over €31 million of financing for small and medium-sized enterprises (SMEs) in Georgia by providing 80% of the coverage of potential losses on each loan originated by TBC Bank. It will contribute to inclusive economic growth in the country with a specific focus on regional entities, women-led businesses, young entrepreneurs and start-ups.

The guarantee is under the SME Access to Finance Initiative supported by the European Fund for Sustainable Development. This joint programme by the EIB and the European Commission aims to enhance access to finance for SMEs and promote financial inclusion of underserved segments, such as start-ups or youth- and women-led businesses.

The guarantee operation also contributes to sustainable economic recovery under the European Union’s flagship Economic and Investment Plan for the Eastern Partnership, which aims to help 80 000 SMEs in Georgia.

EIB Vice-President Teresa Czerwińska, responsible for the Bank’s activities in Georgia, remarked: “The EIB is pleased to support women in business, young entrepreneurs and start-ups in Georgia through our joint initiative with the European Commission. To be implemented by one of Georgia's leading banks, TBC Bank, this guarantee facility will promote financial inclusion for underserved SMEs and increase their contribution to the economy. Supporting the growth of enterprises and diversification of the Georgian economy is particularly important as the country has just recently been granted EU candidate status.”

European Union Ambassador to Georgia Paweł Herczyński said: “The EU’s Economic and Investment Plan for the Eastern Partnership is the backbone of EU-Georgia cooperation to support small businesses, stimulate jobs and growth, promote connectivity and foster Georgia’s green and digital transition. We are pleased to support today’s guarantee agreement, which takes an inclusive approach to providing access to finance and job creation. Economic growth that is inclusive and sustainable is crucial for Georgia’s socio-economic development and for the resilience of Georgia’s economy. Working on these EU priorities – a more inclusive, sustainable economic growth – will help Georgia on its EU path.”

Vakhtang Butskhrikidze, CEO of JSC TBC Bank, said: “We are happy to continue our strategic partnership with the EIB and announce the successful completion of another risk-sharing agreement.  This transaction is testament to the well-established, strong partnership between our organisations and our shared values to strengthen women’s economic empowerment, promote young entrepreneurs and start-ups and support the country’s regional development. Innovative financial instruments of this kind are very important, as it enables TBC to accelerate financing for underserved SMEs, strengthen their competitiveness and support sustainable economic development and job creation in Georgia. I would like to thank the EIB for this extended support, and I’m convinced we will have many more opportunities to work on impactful deals in the future.