The European Investment Fund (EIF) and ProCredit Bank Georgia signed an InnovFin agreement in Luxembourg today that could benefit innovative Georgian smaller than average and medium-sized enterprises (SMEs) and small mid-caps.
The InnovFin agreement, the very first of this type in Georgia, will enable ProCredit Bank Georgia to supply loans to innovative companies on the next 2 yrs with the support of the guarantee furnished by the EIF and backed by Horizon 2020, the EU Framework Programme for Research and Innovation. The InnovFin guarantee covers 50% of loan disbursed by ProCredit Bank Georgia and it\’s most likely to develop a total loan portfolio of EUR 50 million.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: \”Horizon 2020, our research and innovation programme, is ready to accept the whole world, and a productive relationship with Eastern Partnership countries for instance Georgia is a crucial part of the strategy. This deal takes our cooperation with Georgia a step further. It will eventually support Georgia’s economy, as Georgian companies can reap the benefits of EU-guaranteed loans to boost their research and innovation potential\”.
Commenting over the signature, the EIF\’s Ceo, Pier Luigi Gilibert, said: \”I welcome the signature of this first InnovFin agreement in Georgia. Today\’s agreement will enable ProCredit Bank Georgia to grow its financing activities, which can allow innovative Georgian companies to learn from more attractive loans.\”
Alex Matua, Director of ProCredit Bank Georgia, said: \”The InnovFin programme is essential for ProCredit Bank Georgia, simply because it offers us the possibility to develop further and finance the firms that individuals believe are the core on the economy. We give attention to medium and small enterprises that contain innovative vision and embrace modern European standards. They may be planning their future development and we\’re your budget that frequently supports them.\”
Borislav Kostadinov, person the Management Board of ProCredit Holding, added: \”We are extremely thrilled to announce that your InnovFin guarantee agreement, that has been successfully implemented in eight of the banks in South Eastern and Eastern Europe, can be introduced in Georgia, thereby easing access to financing for innovative Georgian SMEs. Of your amount invested on the ProCredit group in 2016, 1 / 3rd is utilised to aid innovative companies throughout the course of the season.\”
The objective the InnovFin SME Guarantee could be to encourage banks or another financial institutions to give loan to SMEs and small mid-caps (approximately 499 employees) requiring investment and/or operating capital to fund research, development and innovation activities, with EU financial support. Finance institutions are selected by the EIF using a demand expression useful for financial intermediaries across Europe.