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Supporting the financial inclusion of Georgian microentrepreneurs
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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9077539
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Financing details
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USD 10m equivalent loan in GEL and EUR 13,000 for 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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PGE1037
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Environmental and social ranking
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IF-C
This project is carried out with the support of the European Union and is part of the 2X Challenge initiative.
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union. This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has allocated a senior debt guaranteed by the European Union’s EFSD program to Crystal, a Georgian microfinance institution. This project aims to develop micro-credits and women’s entrepreneurship in the country.
Client presentation
Crystal is a Georgian microfinance institution set up in 1998 with a mission to grant micro-credits to vulnerable people, such as women, internally displaced persons and rural dwellers, which account for 58% of its loan portfolio. Its activity mainly focuses on Western Georgia. Crystal is particularly committed to supporting women’s entrepreneurship.
Project description
Proparco has allocated a senior debt in local currency (GEL) equivalent to USD 10m to the Georgian microfinance institution Crystal.
The project aims to support the development of its loan portfolio for vulnerable people. This senior debt is guaranteed by the European Union’s EFSD COVID (European Fund for Sustainable Development) program which aims to indirectly support small entrepreneurs affected by the economic crisis caused by the Covid-19 pandemic.
The client also benefits from technical assistance through an expert directly recruited by Proparco to strengthen and assess its capabilities on the issue of client protection for an amount equivalent to almost EUR 13,000.
Project impact
The expected impacts of this project are:
- New or improved access to a micro-credit for 4,700 beneficiaries and support for 315 MSMEs
- Support for 80 direct jobs (including 10 jobs created) and 1,900 indirect jobs over the next 5 years.
The project qualifies 100% for the 2X Challenge through the “Leadership” and “Consumption” criteria, with 37% of women on the Board of Directors and 60% of women among Crystal’s clients.
The project contributes to the achievement of SDG 1 (“No poverty”), SDG 5 (“Gender equality”), SDG 8 (“Decent work and economic growth”) and SDG 10 (“Reduced inequalities”).