FIF -Bank of Georgia - SME Line (COVID crisis response)

complete

This Project was approved in the context of the Bank's response to the COVID-19 pandemic.  To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information.  Details of the Bank's response to COVID-19, and this deviation, can be found on our website. Project Description: MSME senior unsecured credit line of up to USD 100 million in favour of JSC Bank of Georgia. The Project will go under the Financial Intermediaries Framework (BDS 15-50) and will be complementary to the EBRD COVID-19 crisis response in Georgia, helping to address challenges outlined in the Solidarity Package (BDS20-039). Project Objectives: The Project will enable Bank of Georgia to maintain uninterrupted lending to MSMEs severely affected by the economic consequences of the COVID-19 pandemic. Transition Impact: ETI score: 60 The project contributes to the objectives of the Financial Intermediary Framework, supporting Competitive and Resilient transition qualities. With its wide regional outreach, BOG is well positioned to provide finance to MSMEs and attract new MSME clients. BoG will ensure sound banking principles and will support local currency lending. Additionality: EBRD's participation in the proposed transaction is expected to be highly additional in light of severe impact of the COVID-19 pandemic on the Georgian economy and MSME sector in particular, greatly elevated risk aversion by commercial lenders and confidence-enhancing effect of EBRD's financial backing. Environmental and Social Summary: Categorised FI (ESP 2019).  Bank of Georgia (BoG) is well known to the Bank through a number of transactions, over a number of years.  BoG has a well-developed suite of policies and procedures for the management of key issues under PRs 2, 4 and 9. BoG will be required to continue compliance with PRs 2, 4 and 9 and to provide the EBRD with annual E&S reports. Implementation Summary (only complete if and when an OPA is completed): not applicable Technical Cooperation: None