Georgia: New Companies Give the Economy Momentum
In the spring of 2008, OeEB decided to strengthen the financial sector in Georgia by providing 49.75% of a joint credit line with KfW in the amount of a total of USD 47.5 million for ProCredit Georgia.
When the B. family stands proudly among a large selection of bags in their shop in Tbilisi, it is clear evidence that the credit line for ProCredit Georgia extended by OeEB together with German KfW in 2008 has achieved its purpose: to create new companies and thus new income opportunities.
ProCredit Georgia is a part of the international ProCredit group with more than 40 branches and approximately 1,500 employees in Georgia. The OeEB/KfW credit line made it possible for them to offer additional loans to micro, small and medium-sized enterprises. Family B. took advantage of this opportunity and got a small loan from ProCredit. Then, the family drove over the border to Turkey to buy bags and shoes, which they then sold in a small shop in Tiflis.
The entrepreneurial courage was rewarded. The business is going well. In the meantime, family B. has begun selling bags and shoes in a larger shop and is thinking about an additional location.
Investment despite conflict
The OeEB decided to strengthen the Georgian financial sector in the spring of 2008. A few months later, the situation worsened on account of the armed conflict between Georgia and Russia and the trust of international investors sank even further.
OeEB extended 50% of a joint credit line with KfW in the amount of a total of USD 47.5 million and thereby bolstered ProCredit.
A joint evaluation of KfW and OeEB performed by independent experts concluded that the credit line was a complete success in terms of the fulfilment of its development goals.
Department Investment Financing
Department Advisory Programmes