ADB’s GEL120m Credo Bank Loan Opens Doors for Small Businesses in Georgia

ADB and Credo Bank began working together in 2015, developing a partnership that has expanded MSME lending and supported financial inclusion for rural businesses involved in agriculture.

Small businesses outside Georgia's capital are set to gain greater access to financing through a GEL120 million loan, worth approximately $46 million, signed between the Asian Development Bank (ADB) and JSC Credo Bank. The agreement focuses on micro, small, and medium-sized enterprises (MSMEs), including businesses owned by women, bringing additional funding to regions where access to suitable credit can shape an entrepreneur's ability to invest, expand operations and build a more secure livelihood.

The loan addresses gaps in financing available in Georgian lari, particularly borrowing with longer repayment periods, and reduces the foreign exchange risks that enterprises face when taking on debt in another currency. For a business earning its income in lari, local currency borrowing can reduce exposure to exchange rate movements that could make repayments more expensive, giving owners greater certainty in planning their finances and helping strengthen the resilience of Georgia's banks.

Bringing Business Finance Beyond Tbilisi

Residents of smaller towns and rural communities are central to the agreement, with ADB Country Director for Georgia Lesley Bearman Lahm linking the financing to wider business opportunities and economic growth across the country's regions. She said the continuing partnership with Credo Bank helps maintain access to affordable financing for these communities, where local enterprises need dependable financial services to support their development.

Women-owned MSMEs are explicitly included among the businesses the loan will support, placing their access to finance within the broader effort to reach entrepreneurs outside Tbilisi. The combination of local currency lending and longer repayment periods addresses two practical concerns for businesses considering investments whose returns may take time to develop, connecting the transaction to the everyday decisions owners make about their future.

A Partnership Built Around Rural Communities

ADB and Credo Bank began working together in 2015, developing a partnership that has expanded MSME lending and supported financial inclusion for rural businesses involved in agriculture. Their cooperation included countercyclical support during the COVID-19 pandemic, providing assistance during a period of economic disruption that placed pressure on enterprises and the communities depending on them.

Credo Bank's roots in rural microfinance have helped it establish a strong presence across Georgia's regions, serving small businesses, farmers and rural households through services shaped around customers' needs and investment in digital innovation. Chief Executive Officer Zaza Pirtskhelava said financing and technical assistance from ADB have supported business growth, financial inclusion and digitalisation throughout the partnership, describing the new GEL120 million transaction as a further expansion of access to local currency funding for regional MSMEs.

Connecting Small Business Growth With Georgia's Future

ADB has supported Georgia since 2007 and is the country's largest multilateral development partner, with loans, grants and technical assistance exceeding $6 billion, including more than $1 billion allocated to the private sector. That support places the Credo Bank agreement within a wider programme of investment, recognising the contribution private businesses make to economic activity and opportunities across the country.

Under its 2024–2028 country partnership strategy, ADB supports Georgia's development into a green and inclusive regional gateway through public and private sector investment, policy reforms, capacity building, resilient infrastructure and regional integration. Better access to finance for businesses beyond the capital fits that direction, giving entrepreneurs in smaller towns and rural areas more scope to participate in the country's development.