EBRD loan to ProCredit Bank Georgia supports youth-led businesses

• EBRD lending up to €15 million to support youth-led businesses
• First dedicated youth financing in Georgia
• Advisory support also being provided to strengthen young entrepreneurs

The European Bank for Reconstruction and Development (EBRD) is strengthening its support for young entrepreneurs in Georgia with a new loan of up to €15 million to ProCredit Bank Georgia for on-lending to micro, small and medium-sized enterprises (MSMEs).

This financing is being provided under the EBRD’s Youth in Business Caucasus programme and is the first transaction under that programme in Georgia. It will increase access to finance for private youth-led MSMEs, helping young business owners to start, grow and formalise their businesses.

Through this partnership, ProCredit Bank Georgia will expand lending to private businesses owned or led by entrepreneurs under the age of 35, including first-time borrowers and businesses located outside the capital, Tbilisi. Young entrepreneurs often face significant barriers in accessing finance due to their limited credit histories and collateral; the facility is designed to address these gaps and support more inclusive economic growth.

ProCredit Bank has been operating in Georgia since 1999, playing an important role in the development of the MSME sector through tailored financing and advisory services.

Alkis Vryienios Drakinos, the EBRD’s Regional Director for the Caucasus, said: “This product is the first of its kind in the Georgian market. By partnering with ProCredit Bank Georgia, the EBRD will effectively reach young entrepreneurs with tailored financial solutions at a critical stage of their development. ProCredit’s longstanding commitment to MSME financing, its strong local presence and its prudent risk management make it a trusted partner to channel these funds and expand access to finance for youth led businesses across Georgia.”

In addition to financing, the EBRD is also providing advisory services, which will help to strengthen the bank’s capacity to serve youth-led businesses and provide non-financial support to entrepreneurs. These services will focus on improving business skills, competitiveness, digitalisation and long-term resilience.

This initiative is expected to stimulate job creation, encourage innovation and contribute to the development of a dedicated youth banking market in Georgia, demonstrating that youth-led MSMEs represent a viable and bankable segment when supported with tailored financial and non-financial solutions.

Since the start of its operations in Georgia in 1996, the EBRD has invested more than €5.7 billion in the country across 318 projects, supporting the private sector, financial institutions and sustainable economic development.