Georgia: DCFTA and facility for SMEs

January 20, 2015

Hat: Georgia: DCFTA and facility for SMEs

Funding Scheme: 2015-01-20

Pgm2014 2020: Yes

Amorce:

Following the objectives of the neighborhood policy, EU is reinforcing the cooperation with Georgia.

Text:

Today, Johannes Hahn, Commissioner for European Neighbourhood Policy & Enlargement Negotiations, and Prime Minister of Georgia, Irakli Garibashvili, signed a Financing Agreement for a new programme to help Georgia implement the Deep and Comprehensive Free Trade Area (DCFTA) and promote the private sector development.

<b>Background</b>
The new three-year programme launched by the Financing Agreement is worth €44.5 million and will assist the Georgian Government in the implementation of the DCFTA. The EU support will focus on: (1) further strengthening the policy framework for trade and the development of SMEs; (2) improving the functioning of the institutions regulating and supporting the trade and the private-sector; (3) strengthening economic actors and SMEs while adjusting to the new regulatory environment according to the DCFTA; (4) the economic integration of returned migrants, women in business and young entrepreneurs.

This programme is complemented by the DCFTA Facility for SMEs, a regional initiative of the EU and the European Financing Institutions (EBRD and EIB at the first place) aiming at mobilising about €150 million of EU grant to unlock approximately € 1.5 billion of investments in the SMEs of Georgia, Moldova and Ukraine. As part of this initiative, the EU and EBRD have signed already in December 2014 a new SME Direct Finance programme of €10 million that will directly support investment by SMEs in the three countries by guaranteeing loans for ca. €70 million.

Url description: European Commission press

Url: http://europa.eu/rapid/press-release_IP-15-3381_en.htm