The European Investment Bank (EIB) said on Thursday that it will lend $44.7 million to the Bank of Georgia in support of smaller companies.

This funding will be used to facilitate private-sector development for small and medium-size enterprises (SMEs) and midcap companies, as well as economic and social infrastructure, climate-change mitigation and adaptation initiatives.

“We are very pleased to start cooperation with the European Investment Bank, especially in light of Georgia’s increasing economic and political ties with the EU, which has become the country’s largest trading partner," Bank of Georgia CEO Irakli Gilauri."The euro’s influence on the lari has significantly increased in recent years, with the lari effectively becoming a euro proxy, and as a result, we are now focused on raising euro funding and trying to shift U.S. dollar loans to euros. This loan, earmarked for financing our micro and SME customers, will enable us to further increase our competitiveness in the sector and support growth and job creation.”