SME Credit Line - Georgia



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

03 Dec 1996



PSD disclosed:

05 Nov 1996

Project Description

The project consists of a Framework Guaranteed Loan Programme, with direct loans to be provided under a sovereign guarantee to private Georgian banks for on-lending to private small and medium-sized enterprises (SMEs).

The project objectives include: i) providing term finance for investment, working capital and trade finance needs of eligible SMEs; and ii) strengthening a core group of Georgian banks to become effective financial intermediaries by improving their credit skills and assisting in their institutional development.

Transition Impact

The transition impact of the project will be significant, particularly in supporting the development of the financial sector, the regulation and effective supervision of banks, and in meeting the financing needs of new private SMEs, as well as privatised and restructured firms.

The Client

Georgian private banks meeting eligibility requirements designed to identify, and support, those that can develop into sound banks within the project time-frame. TBC Bank, Tbilcombank and Tbilcreditbank are expected to participate at an early stage.

EBRD Finance

The total funds for the credit lines to the participating banks which qualify before 30 June 1998 will be up to US$ 12 million (ECU 9.6 million).

Project Cost

Up to US$ 12 million (ECU 9.6 million).

Environmental Impact

The participating banks will follow the EBRD's "Environmental Procedures for Local Banks" for all sub-loans financed through the credit line. In implementing these procedures, the participating banks will assess potential environmental issues associated with sub-projects, which are required to comply with local/national environmental, health, safety, and public participation requirements. The participating banks will report annually on environmental issues related to the credit line.

Technical Cooperation

Technical cooperation funding totalling ECU 326,000 has been provided. Funding of ECU 1,156,000 is being sought from donors for resident advisers and specialised assistance.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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