Georgia: Bank of Georgia COVID-19 Response to Support Micro, Small, and Medium-Sized Enterprises Project

Nonsovereign Project | 54239-001

Senior unsecured loan of up to $100,000,000 or its lari equivalent to the Joint Stock Company Bank of Georgia (BoG) for the Bank of Georgia COVID-19 Response to Support Micro, Small, and Medium-Sized Enterprises Project in Georgia.

Project Details

Project Name Bank of Georgia COVID-19 Response to Support Micro, Small, and Medium-Sized Enterprises Project
Project Number 54239-001
Borrower / Company Joint Stock Company Bank of Georgia
Country / Economy Georgia
Location Nation-wide
Type or Modality of Assistance
Loan Japan USD 100.00 million Approved
Loan Ordinary capital resources USD 100.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing
Gender Equity and Mainstreaming Gender equity
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Perez, Gema
Project Sponsor(s)
Description Senior unsecured loan of up to $100,000,000 or its lari equivalent to the Joint Stock Company Bank of Georgia (BoG) for the Bank of Georgia COVID-19 Response to Support Micro, Small, and Medium-Sized Enterprises Project in Georgia.
Objectives and Scope The loan to BoG will improve the conditions for Georgia economic recovery by facilitating the growth of BoG lending to micro, small, and medium-sized enterprises (MSMEs), providing critically needed funding to companies that have been affected by the pandemic's economic fallout or that have new financing needs to build medium-term resilience and sustainable operations.
Linkage to Country/Regional Strategy

The transaction contributes to finance sector development by supporting the growth of a financial institution that plays a key role in Georgia's finance sector. It also contributes to accelerating progress in gender equality, an operational priority of ADB's Strategy 2030. The transaction is also aligned with the Operational Plan for Private Sector Operations, which aims to support vibrant, stable, and efficient finance sectors and financial inclusion.

The loan complements ADB's sovereign operations support package to Georgia, which includes a COVID-19 Active Response and Expenditure Support (CARES) loan of $100 million approved on 28 May 2020, and a protection and fiscal management programmatic policy-based loan of $350 million expected to be approved later in 2020, as well as increasing other existing programs to support reforms in energy, urban water, and education. The loan complements the countercyclical pandemic response's SME access to finance component via the government credit guarantee scheme, by providing funds for banks to lend to this segment.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects BOG will exclude any investment that is category A for environment or category A or B for social safeguard impacts from using ADB loan proceeds. The project will not contribute to the reduction of greenhouse gas emissions. No climate mitigation or adaptation financing has been estimated for this project.
Involuntary Resettlement No involuntary resettlement impacts are envisaged.
Indigenous Peoples No indigenous people's impacts are anticipated.
Stakeholder Communication, Participation, and Consultation BOG will engage directly with its MSME borrowers and work with them to provide the support needed during the COVID-19 crisis. Women who own MSMEs will benefit particularly from this project, as BOG will ensure that its COVID-19 financial and business support response is gender equitable. To implement this objective, both the design and monitoring framework and the gender action plan annexed to the loan agreement outline specific gender measures that will be carried out.
Timetable for assistance design, processing and implementation
Concept Clearance 04 Jun 2020
Credit Committee Meeting 21 Aug 2020
Approval 16 Nov 2020
Last PDS Update 17 Nov 2020

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