In 2008, only a few month after the conflict with Russia, OeEB and German KfW signed a credit line for the ProCredit Georgia. The total sum of the credit line amounts to USD 47.5 million, of which 49.75 % were assigned by OeEB. The evaluation now confirms OeEB the desired effects has been achieved.
OeEB and KfW jointly commissioned a review by an independent expert to assess whether the credit line, of which a total of USD 20 Mio was disbursed, is the right tool for supporting micro-, small- and medium enterprises and whether the project therefore makes good sense from a development perspective. Based on the DAC evaluation criteria of the OECD, the consultant assessed the project’s relevance, effectiveness, efficiency, broader development impacts and sustainability.
Development purposes achieved
The findings of the assessment show that the path taken was the right one. The evaluator concluded that the credit line fully achieved its development purpose. Through it, ProCredit Georgia had access to long-term, affordable credit even in an extremely difficult period. When money was scarcest, in a time of crisis, micro, small and medium enterprises in Georgia thus gained the opportunity to borrow for business start-ups and expansion. In parallel, awareness campaigns expanded the knowledge of ProCredit’s customers about financial products.
ProCredit was able to position itself as a profitable financial institution and is now the third largest bank in Georgia. It was also the only bank in Georgia to remain profitable between 2008 and 2011.