The European Bank for Reconstruction and Development (EBRD) is extending a Georgian Lari (GEL) loan equivalent to $1m to local JSC Crystal MicroFinance Organisation.
The credit line is aimed to increase the availability of financing to micro and small enterprises (MSEs) and support JSC Crystal, a non-bank microfinance institution, in its drive to expand operations, particularly in rural areas where no other lender operates and in the agricultural sector.
The loan is accompanied by $100,000 in grant funds, which will be used to strengthen Crystal’s corporate governance and risk management.
Through this transaction the EBRD is helping Crystal meet the increasing demand for longer-term loans in GEL, facilitating MSE’s access to financing at a time when local currency lending in Georgia remains limited. The EBRD is setting a specific priority on promoting local currency borrowing in its countries of operations in a drive to reduce excessive dependency on foreign currency debt.