EBRD Secures $10 Million Financing for Crystal Microbank in Georgia

News Summary

The European Bank for Reconstruction and Development (EBRD) has announced a $10 million financing package for Crystal Microbank in Georgia. This funding aims to bolster private-sector development and enhance green finance. The financing includes an EBRD loan of $8 million for local MSMEs and a $2 million loan to support green lending initiatives. The package also involves technical assistance for capacity building to meet increasing sustainable finance demands. This investment underscores EBRD’s commitment to promoting economic growth and environmental sustainability within the region.

Tbilisi – The European Bank for Reconstruction and Development (EBRD) has secured a financing package of US$ 10 million (€8.6 million) for Crystal Microbank in Georgia. This funding aims to bolster private-sector development while enhancing green finance in the region, paving the way for sustainable economic growth.

The financing consists of two primary components. An EBRD loan of US$ 8 million is designated to support local micro, small, and medium-sized enterprises (MSMEs), particularly in economically underdeveloped regions and rural areas. Additionally, there is a US$ 2 million loan comprising US$ 1.5 million from the EBRD and US$ 0.5 million from the Green Climate Fund (GCF) focused on expanding Crystal’s green lending capabilities.

With this funding, Crystal Microbank plans to finance technologies aimed at mitigating climate change and adapting to its effects, specifically for individuals and MSMEs. The loans will be distributed through Crystal’s expansive branch network and digital platforms, with particular emphasis on supporting women-led businesses and underrepresented groups within the local community.

Furthermore, a technical cooperation package funded by Austria and the GCF will provide assistance to Crystal Microbank for capacity building, implementation, and monitoring. This is expected to improve the bank’s ability to serve the needs of its clients effectively and sustainably.

The EBRD’s Regional Director for the Caucasus highlighted that this investment is crucial for fostering inclusive and sustainable private-sector growth within Georgia. This financing initiative aligns with ongoing efforts to promote environmental sustainability in the country’s financial system.

Crystal Microbank, which was officially licensed as a microbank by the National Bank of Georgia on February 12, 2025, has marked significant progress since its inception. At the time of its licensing, the bank reported a loan portfolio worth GEL 570 million (€181 million), operated 48 branches, employed over 1,000 workers, and served more than 100,000 clients across the nation. In the first half of 2025, Crystal successfully mobilized more than GEL 130 million (€41 million) in new funding, demonstrating its robust position in the market.

Since its establishment, the EBRD has invested over €5.52 billion in 313 projects spanning various sectors in Georgia, including financial services, corporate development, infrastructure, and energy, with 83% of these investments directed towards the private sector. This extensive engagement underscores the EBRD’s commitment to supporting Georgia’s economic development and environmental sustainability.

Georgia faces significant challenges stemming from climate change, evidenced by an increase in droughts and floods, which necessitates comprehensive reform for economic stability and climate adaptation strategies. The National Bank of Georgia has been proactive since 2020 in developing a sustainable finance strategy aimed at integrating environmental considerations into the financial system. This initiative includes the introduction of Environmental, Social, and Governance (ESG) guidelines that require financial institutions to disclose potential climate-related risks.

Recently, Georgia witnessed its first corporate green bond issuance, which was a US$80 million bond focused explicitly on renewable energy projects. Nevertheless, green loans currently represent less than 1% of total bank lending in Georgia, indicating a pressing need for broader adoption of sustainable finance practices. This backdrop reveals both the progress made and the challenges that lie ahead in promoting green finance within the country.

To meet the growing demand for sustainable financial products, future initiatives may focus on launching public education campaigns and strengthening partnerships with international financial institutions. These efforts aim to expand the offerings of green finance products while raising awareness among consumers and stakeholders.

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