Millennium Challenge Georgia Launches Investment Fund to Boost Economy in Georgia’s Regions
On January 31, 2007, Millennium Challenge Georgia launched the Georgia Regional Development Fund (GRDF) project to provide long-term loans and equity investments in small and medium local enterprises. MCG will make $30 million available to the fund for investments in rural areas outside of Tbilisi, focusing on tourism and agribusiness industries. Investments will range in size from $500,000 to $3 million. GRDF will also provide $2 million in technical assistance to investees or potential investees. Alongside the fund, MCG will fund a legal reform project to identify and address the problems affecting the investment climate in Georgia.
Millennium Challenge Georgia, the entity established by the Georgian Government to implement the US-Funded $295 million Millennium Challenge Account program, has recently contracted American company SEAF to manage the investment fund.
Key speakers at the event were Minister of Economic Development Giorgi Arveladze, Ambassador Tefft, Chairman of GRDF Board of Directors Giorgi Bedineishvili and the President of SEAF, Bert Van der Vaart.
“The United States has long supported business growth in Georgia. The Fund builds on USAID’s programs in the financial sector, improving the business climate and agriculture. In addition, it is hoped the fund will profit from MCG’s own ADA program to develop small agribusiness. It is hoped that the fund will pave the way for further foreign investment in Georgia both by example and through its legal reform efforts” Ambassador Tefft told the audience at the Tbilisi Marriott Hotel.
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