EIB to Allocate EUR 450 million to Georgia

The European Investment Bank (EIB) will allocate EUR 450 million to Georgia through three loan agreements, the EIB and Georgian Prime Minister’s Office said.

EUR 250 million will be allocated to finance new construction and upgrading of priority roads, EUR 100 million for the rehabilitation and upgrading of municipal infrastructure and a EUR 100 million intermediated loan to implement the projects of SMEs and midcap companies in the horticulture and wine sectors.

All the three agreements were signed on December 9 by Georgian Finance Minister Dimitri Kumsishvili and EIB Vice President Jan Vapaavuori.

Speaking at the government’s session later on the same day, PM Giorgi Kvirikashvili welcomed signing of the agreements as a high-level confirmation of “our partnership with the European Union.” According to the EIB, the loans are covered by the European Union’s comprehensive guarantee.

“Together with our European Commission partners, we will help to upgrade infrastructure in municipalities, extend the network and quality of roads important for better interconnectivity and trade opportunities of Georgia, as well as improved access to finance for companies operating in agriculture to support investments from the introduction of modern technologies from harvest to food production and marketing,” EIB Vice President Jan Vapaavuori said.