Ownership is the best motivation in Georgia

Omar and two of his employees at the new dental surgery in Rustavi, Georgia, which he opened with the help of a loan arranged through the EU4Business programme.

A €40 000 bank loan arranged through the European Fund for Southeast Europe (EFSE) has allowed Omar Baxturidze to expand his dental practice in Rustavi, Georgia.

Omar took out the loan in March 2014 with one of EFSE’s partners in Georgia, Bank Republic. “After years of renting premises, I finally invested in a practice to own outright,” he explained. “My advisors at Bank Republic laid out a realistic repayment schedule and they have been very helpful in many other ways. Now I can fully concentrate on my vocation.”

Bringing some personal savings to the table made it possible to negotiate favourable terms over a manageable time frame. The effect was a considerable reduction in Omar’s fixed costs, while increasing his net worth.

Located in Rustavi, about a 35-minute drive southeast of the capital, Tbilisi, the new practice is both larger and much better situated. “The great news is that virtually all of my patients are following me to my new practice,” he beams. “I know I also owe that to my team, both at the reception desk and by my side in the consultation room.”

Omar has barely settled in and already business at the new surgery is picking up as word-of-mouth spreads. The plan is to add two more dental chairs and hire two additional dental assistants as well.

“The extra space not only makes the work easier, but it also enables me to serve more clients and to serve them better,” he adds. “I keep in regular contact with Bank Republic and, as partners, we are both very happy to see how well things are going.

“I began practising dentistry almost thirty years ago, and always rented my premises. I was being responsible and not biting off more than I could chew. As the business grew, it became clear that I should talk to a bank about financing my own practice. As the saying goes, better late than never.”

EU contribution

€5.1 million for the six Eastern Partnership countries as a whole



Find out more

The fund was set up to benefit micro, small and medium enterprises and low-income private households, in the target countries. Its aims are to:

  • foster economic development and prosperity in the Southeast Europe region and European Eastern Neighbourhood Region. It does this through the sustainable provision of additional development finance, notably to micro and small enterprises (MSMEs) and private households, via qualified financial institutions
  • attract additional investors to Southeast Europe and the European Eastern Neighbourhood Region and to offer them an attractive financial return in line with market expectations.

Eligibility Criteria for financing and how to get it

The fund will finance:

  • local commercial banks, regulated and non-regulated microcredit organisations (MCOs) and other selected financial institutions
  • commercial banks, investment companies, investment funds or holding companies.

Implementing Partner

KfW Group
Contact person: Monika Beck
Palmengartenstr. 5-9,
60325 Frankfurt am Main,
Phone +49 (0) 69 74 31-0

Email: monika.beck@kfw.de

Partner Lending Institutions

Bank of Georgia

Bank Republic

MFO Credo

MFO Crystal

ProCredit Bank Georgia

TBC Bank