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In Georgia, a loan to develop microcredits for smallholder farmers
Project
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Signature date
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Location
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Georgia
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Financing tool
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Financing amount (Euro)
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5743800
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Financing details
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USD 7m loan and USD 35,000 Technical Assistance
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Customer
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JSC MFO CRYSTAL
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Type of customer
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Microfinance
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Country of headquarters
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Georgia
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Project number
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PGE1013
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
PROPARCO’s loan allocated to the microfinance institution Crystal will support the development of microcredits for smallholders and agricultural cooperatives in Georgia.
Client presentation
Crystal was set up by five young refugees from Abkhazia Province. It started its microcredit activities in 1998 as an NGO working for vulnerable internally displaced populations.
Project description
Proparco’s credit line aims to develop Crystal’s loan portfolio for smallholder farmers (particularly cooperatives) in Georgia. Technical assistance in 2020 will also help the MFI develop its leasing activity.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
Project impact
This project will increase access to basic financial services in Georgia. With an average loan size of EUR 830 and a minimum loan of approximately EUR 17, PROPARCO’s loan should allow 14,000 people to access microcredit products and services.
Furthermore, PROPARCO’s support to Crystal promotes the empowerment of women, who account for over half (51%) of the microcredits allocated, and the development of Georgia’s agricultural sector via the allocation of agricultural microcredits to farmers and cooperatives.
PROPARCO’s financing will allow Crystal to develop by opening 21 new branches over the next 5 years, which should create 300 new positions, while maintaining the current 801 jobs.
Finally, PROPARCO will also play an advisory role via technical assistance, which could concern non-financial thematic areas (for example, via training programs for farmers).