European Investment Bank supports Georgia’s agricultural food sector
Monday, May 25
The European Investment Bank (EIB) is providing significant financial support to new agricultural projects in Georgia with the aim of stimulating the country’s agricultural sector.
The EIB signed a Declaration of Intent with Georgia yesterday to set up a financing facility that will benefit Georgian small and medium-sized enterprises (SMEs) active in the wine industry and horticulture.
The agreement was signed yesterday in Brussels by EIB Vice President Wilhelm Molterer and Georgia’s Agriculture Minister Otar Danelia.
The agreement will enable the EIB to provide up to 50 percent of the cost of eligible projects in Georgia’s agricultural food sector, "and increased international competitiveness will allow the country to make the most of the DCFTA [Deep and Comprehensive Free Trade Area] and increase its exports to the EU”.
The EIB has lent nearly ˆ530 million to Georgia as part of cooperation to support a number of priority sectors including transport, water and energy as well as support for SMEs and midcaps. Last month, the EIB opened a representative office in Tbilisi.
Agriculture and the food and beverage industry are among the key sectors of Georgia’s economy, and increased international competitiveness will allow the country to make the most of the DCFTA and increase its exports to the EU.
The EU is Georgia’s most important trading partner, accounting for more than a quarter of Georgia’s total trade. The free trade area was set up in September 2014.
The EIB lent EUR 1.2 billion in the Eastern Partnership countries in 2014. Total lending commitments in the region amount to EUR 4.4 billion.