Georgia: Bank of Georgia COVID-19 Response to Support Micro, Small, and Medium-Sized Enterprises Project
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.
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|Project Name||Bank of Georgia COVID-19 Response to Support Micro, Small, and Medium-Sized Enterprises Project|
|Borrower/Company||Joint Stock Company Bank of Georgia
|Type or Modality of Assistance||
|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|
|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.
|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|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Bank of Georgia COVID-19 Response to Support Micro, Small, and Medium-Sized Enterprises Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Aug 2020|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
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