Brussels, 25/05/2012 (Agence Europe) - On Thursday 24 May, the European Investment Bank (EIB) decided to provide a grant of up to €4 million to ProCredit Holding's subsidiaries in Georgia, Armenia and Moldova, consisting of interest subsidies for the final beneficiaries, as well as credit enhancement on the loans in question.
This grant builds on successful EIB cooperation with the ProCredit group, which operates in the Eastern Partnership countries. In October last year, the EIB signed credit lines totalling €50 million with ProCredit's subsidiaries in Georgia, Armenia and Moldova to support smaller-scale project financing in those countries. Thursday's decision will enable interest rates on loans to small and medium-sized enterprises to be subsidised. The final beneficiaries of EIB loans will receive up to 10% of their loans interest-free. In addition, the 10% grant-funded loan will act as a funded-loss risk-sharing cushion for the ProCredit subsidiaries. (OL/transl.jl)