Mid-term Evaluation of Portfolio Guarantee Georgia between Sida and TBC Bank

Summary

This report presents the findings of the Mid Term Evaluation of Portfolio Guarantee Georgia between Sida and TBC Bank. The purpose of the guarantee is to facilitate increased lending by the TBC Bank to MSMEs and start-ups, improving both the conditions of and increasing the quantity of these loans, thereby stimulating economic growth in Georgia. The report assesses progress of the loan portfolio guarantee, including its financial and development additionality to inform decisions on the value added of increasing the guarantee amount. The guarantee continues to be relevant for supporting Swedish priorities for reform cooperation in Eastern Europe, and for supporting Georgian government priorities regarding economic development and job creation. The facility is serving as an efficient tool for mobilising private sector funds for Georgian MSMEs. Under the existing limit of the revolving facility, the amount of additional new loans will be constrained to the repayments on previous loans. There is a substantial demand for additional loans to similar viable borrowers, and any possible increase in the facility limit would help provide bank financing for their investments and growth.

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