World Bank Pledges EUR 85 Million to Support Job Creation and Firms Affected by Pandemic in Georgia

Micro, small and medium sized enterprises in Georgia impacted by the COVID-19 pandemic are to benefit from EUR 85 million in financing support, approved today by the World Bank’s Board of Executive Directors, Mirage News reported.

The new Relief and Recovery for Micro, Small and Medium Enterprises (MSMEs) project aims to help businesses and create jobs by expanding and strengthening programs that support MSMEs and by promoting digitalization of Georgia’s economy.

“Through this latest support package, the World Bank will boost job creation and support firms that are the backbone of Georgia’s economy and key to a resilient recovery,” said Sebastian Molineus, World Bank Regional Director for the South Caucasus. “This includes helping firms gain easier access to finance and funding investments in financial infrastructure that will promote technology adoption and the use of digital financial services.”

The project will support at least 6,000 MSMEs across the country, increasing businesses’ chances of survival, preserving productive assets, and helping firms adjust to the new economic and public health challenges.

“The global pandemic has severely affected the private sector, especially micro and medium enterprises in Georgia, so to support them is vital, as well as to encourage the creation of new enterprises that will enable the country to accelerate economic growth,” said Lasha Khutsishvili, Minister of Finance of Georgia. “Once again, I would like to thank the World Bank for the support in fighting the pandemic, as well as in developing the country’s economy.”

The project aims at alleviating the financial constraints of firms and helping them adjust their business to a post-COVID-19 scenario. One component of the project will strengthen and expand MSME support programs implemented by Enterprise Georgia (EG). The direct support for micro and small firms will come in the form of grants offered by EG’s Micro and Small Entrepreneurship support program.