20 November 2012

The EBRD lends to VTB Bank Georgia to support the agribusiness sector

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. 

The facility will include up to EUR 1 million Technical Cooperation support from the EU NIF 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.

CFO of JSC VTB Bank Georgia Mr. Mamuka  Menteshashvili stated:
VTB Bank  is related to EBRD by the long-term partnership. It is of utmost importance for us that the agreement hereof support the follow-up development of agriculture and allow the farmers to extend and develop their own business.

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