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Proparco strengthens its partnership with ProCredit Bank Georgia to support SME financing and reduce regional inequalities

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Signing ceremony between Proparco and ProCredit Bank Georgia 2026 - DR

Proparco has signed a EUR 10 million ARIZ portfolio guarantee agreement with ProCredit Bank Georgia (PCBG), a leading development-oriented bank focused on financing small and medium-sized enterprises (SMEs) in Georgia. This operation marks a new milestone in the long-standing partnership between Proparco and the ProCredit Group, reflecting a shared commitment to responsible banking and sustainable development.

The ARIZ guarantee, amounting to EUR 10 million, will cover up to 50% of the credit risk on a portfolio of loans extended by ProCredit Bank Georgia to micro, small and medium-sized enterprises. By mitigating risk, this instrument will enable the bank to expand its financing to businesses that typically face greater constraints in accessing credit, while maintaining a sound and diversified portfolio.

The initiative places a strong emphasis on supporting enterprises located outside Tbilisi, thereby contributing to reducing territorial inequalities and strengthening economic activity in underserved regions. It also targets smaller and less-served businesses, as well as productive sectors that play a key role in local value chains and regional development.

Fully aligned with Proparco’s 2023–2027 strategy, and in particular with its objective to contribute to the reduction of inequalities through improved access to finance, the project is expected to generate significant and measurable development impact. It will support the financing of dozens of SMEs and very small businesses, contribute to the preservation of more than 1,100 jobs, and foster job creation while strengthening local economies. By facilitating access to finance for smaller enterprises, the operation will also reinforce the role of SMEs as a backbone of the Georgian economy and promote a more inclusive and resilient growth model.

The project contributes to the United Nations Sustainable Development Goals, particularly Goal 8 on decent work and economic growth and Goal 10 on reduced inequalities. It also incorporates a gender dimension, with part of the guarantee dedicated to 2X-eligible businesses, thereby supporting women’s entrepreneurship.

This new guarantee builds on Proparco’s strong and longstanding engagement in Georgia. Through this operation, Proparco reaffirms its commitment to supporting sustainable and inclusive economic development in the country, by enhancing access to finance, fostering entrepreneurship and contributing to more balanced regional growth. 

Through this new ARIZ portfolio guarantee, we are proud to further strengthen our longstanding partnership with ProCredit Bank Georgia. This operation will help expand access to finance for small and medium-sized enterprises, particularly in regions where it remains limited. By supporting entrepreneurship, job creation and more balanced territorial development, it fully reflects Proparco’s commitment to reducing inequalities and promoting sustainable economic growth in Georgia.

Steven Gardon

  • Regional Director for Turkey, Central Asia, the Caucasus, Eastern Europe and the Balkans at Proparco

It is an important partnership between PROPARCO and ProCredit Bank Georgia, as it’s the financial instrument that gives the bank flexibility to offer credit support to micro, small and medium business clients, meanwhile sharing the risks with a reliable European counterparty. ProCredit is the first bank in Georgia to sign an ARIZ portfolio sub-participation agreement and to introduce this instrument to the market. We believe this is the first step for many future joint initiatives, that would have an impact on sustainable economic development and growth in Georgia.

Elene Tsintsadze

  • Member of the Management Board / Director at ProCredit Georgia
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