EBRD and EU provide €1.15 billion to support SMEs in Georgia, Moldova and Ukraine

EBRD and EU provide €1.15 billion to support SMEs in Georgia, Moldova and Ukraine

Oct 22, 2018 

At a high-level conference in Tbilisi, the capital of Georgia, Katarína Mathernová, Deputy Director-General for Neighbourhood Policy and Enlargement Negotiations of the European Commission, said:
“We are pleased to announce the extension of our successful programme of access to finance supporting reforms important for the Deep and Comprehensive Free Trade Area to function. The EU4Business-EBRD Credit line has allowed SMEs in sectors such as manufacturing, retail, agriculture and food processing, transport, services and health care to improve their products, strengthen their export potential and adopt EU standards and technical norms. The combination of EBRD finance and EU grants
has proven to be a perfect match to the needs of Georgian companies.” 
Through the EU4Business-EBRD Credit line – a joint EBRD-EU programme supported by the EU4Business initiative and active since September 2016 – over 100 Georgian companies have received €60 million in financing so far. 

Concrete projects under the EU4Business-EBRD Credit Line range from investments in machinery to complex programmes where companies had the opportunity to draw on free technical assistance provided by an international team of experts. Half of the projects financed in Georgia are with companies located in regions outside the capital, Tbilisi. “We are delighted to see the first real results of our financing supporting Georgian companies. From hazelnut processing to road construction, from promoting local produce to succeeding in foreign markets – companies financed by the programme have decided to invest in the European standards, and we are happy to be part of their success,” said Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus. The EU4Business-EBRD Credit Line is also available in Moldova and will soon be launched in Ukraine. It will assist local SMEs in reaping the benefits associated with their countries’ free trade agreements with the EU, the world’s largest trading block. The EBRD supports businesses with much-needed finance through local partner banks, which allows them to invest in efficient and modern equipment and technologies. EU funds complement investments with technical expertise and provide incentive payments to companies for successful completion. Access to knowledge and know-how is yet another dimension of the EBRD-EU cooperation, with EU funding of €18 million, while the EBRD SME Finance and Development Group fosters advisory services for enhanced performance and growth in all EU Eastern Partnership countries. The conference in Tbilisi today gathered representatives of the EU, EBRD, International Monetary Fund, International Finance Corporation, local firms and business associations. It provided an opportunity to take stock and discuss the future outlook of the programme. Participants agreed that the combination of EBRD finance through local banks such as TBC Bank or Bank of Georgia and EU grant funds remains an attractive and crucial proposition for local businesses.

New Corn LLC – Leases new Tractor

New Corn LLC – Leases new Tractor

Approximately 50% of Ukraine’s 603,000 km2 land mas is devoted to agriculture, and Ukraine’s arable land is amongst the finest in the world.  It is therefore not surprising that Ukraine belongs to the largest corn producers in the world and corn exports are an important part of the economy.  Helping producers align with European Directives and improving their cost structure, for example through energy savings, is the dedicated goal of the EU4Business-EBRD Credit Line. New Corn LLC took advantage of this opportunity and leased a new Tractor from the EU4Business-EBRD Credit Line Partner Finance Institution OTPL. The new Tractor corresponds with European regulations and is therefore also fully aligned with energy efficiency standards, resulting in environmental improvements especially regarding CO2 emissions. After the successful project verification, the company received 10% of the loan value as a grant incentive, funded under the EU4Business initiative of the European Union.

Invested in:

  • Tractor New Holland T7060

Loan & Grant:

  • Loan Amount: EUR 64,624.98
  • Grant Amount (10%): EUR 6,462.50

Value Added Benefits:

  • Primary Energy Use Avoided: 53.18 MWh/yr
  • GHG Emissions Avoided: 14.6 t CO2/year;
  • In addition, the investment leads to better Health h& Safety conditions of the workers

EU Directives Met

  • Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC Text with EEA relevance
  • Regulation (EC) N. 661/2009 of the European Parliament and of the Council concerning type-approval requirements for the general safety of motor vehicles, their trailers and systems, components and separate technical units intended therefore

Agricultural producer of grains, cereals and fodder plants invests in new farm equipment

Agricultural producer of grains, cereals and fodder plants invests in new farm equipment​

2 October 2017

The Moldovan company SC Marineanca-Agro SRL invested in new tractors and seeders and benefits from reduced fuel consumption, reduced pollutant emissions and moves closer to meeting EU Standards. The company took a EU4Business-EBRD Credit Line loan and, because the equipment chosen was standardized, it chose the fast and simple LET process.  After successful verification, the company received a 10% grant.

Investments in:

  • New Tractor
  • New Seeder
  • Other related tools

Investment volume:

  • Loan amount: EUR 80,813
  • Grant amount (10%): EUR 8,081.3

EU Directives met:

Regulation (EU) 2016/1628 of the European Parliament and of the Council of 14 September 2016 on requirements relating to gaseous and particulate pollutant emission limits and type-approval for internal combustion engines for non-road mobile machinery, amending Regulations (EU) No 1024/2012 and (EU) No 167/2013, and amending and repealing Directive 97/68/EC.