Georgia gives up from a €100 million loan from European Investment Bank


February 11, Fineko/ Georgia had to give up from a €100 million loan allocated to the country by the European Investment Bank (EIB).

Georgian Parliament’s press service informs that the statement was published in the bulletin of the Agrarian Committee’s meeting.

The document says that the MPs considered the agreement submitted by the government for ratification - "On exemption from the financial agreement between Georgia and EIB" Chain of production/processing/and sale of agricultural products of Georgia". Deputy Finance Minister Giorgi Kakauridze delivered speech on this question before the parliamentarians.

This financial agreement was signed in 2016. The deputy minister explained that EIB gave a €100 million loan to Georgia for implementation of the project.

"Despite the efforts of the Ministry of Agriculture, commercial banks of Georgia could not assume the obligations of currency risk. As a result, interests on the loan in euros for farmers turned out to be unbearable and impractical - 8-9% per annum. Therefore, the government decided to abandon the allocated loan," Kakauridze said.

He stated that negotiations on this matter with EIB had taken place and now the possibility of implementing a new project within the framework of the above-listed amount is being sought. According to Kakauridze, speech is about a project on reclamation infrastructure.

The deputy minister informed that in 2018 Georgia and EIB already signed an agreement on cancellation of this loan. Ratification of the document by the Parliament of Georgia is necessary for its entering into force. In the coming days, this issue will be submitted for consideration of the session of the supreme legislative body.