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The EBRD Lends to VTB Bank Georgia to Support the Agribusiness Sector

Published: November 19, 2012 | 1:17 pm
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The COMMERCIAL TIMES

The EBRD is continuing to support the development of enterprises involved in agribusiness through provision of a credit line to the VTB Bank Georgia. EUR 3 million, equivalent in local currency, will be extended to the VTB Bank Georgia for on-lending to farmers and other agricultural entities, so that sub-borrowers need not assume the foreign exchange risk

This is the second credit line to the VTB Bank Georgia under the recently launched the Georgian Agricultural Finance Facility (GAFF), which aims to improve access to funding for primary and secondary agri-businesses while supporting the much needed regeneration of the country’s agricultural sector.

VTB Bank Georgia is one of the leading and fast growing banks in Georgia operating since 1995, initially as United Georgian Bank that was subsequently renamed following the acquisition of its shares by the JSC VTB Bank Russia.

The facility will include up to EUR 1 million Technical Cooperation support from the EU NIF (Neighbourhood Investment Facility) to help with the introduction of risk management policies and assist in rebuilding value chains by increasing the quality and profitability at the farm level.

“This project reinforces the EBRD’s commitment to invest in the development of the agribusiness sector. We are also delighted to continue our cooperation with our long-standing partner VTB Bank Georgia which will provide much needed financing to small and medium-sized agricultural businesses, under-served farmers promoting their further growth”, said Paul-Henri Forestier, EBRD Director for Caucasus, Moldova & Belarus.

Agriculture is one of the key strategic sectors of the Georgian economy. The EBRD remains a committed partner in Georgia. Since the beginning of its operations in Georgia, the EBRD has invested approximately €1.72 billion in over 157 projects.

 

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