MICROCAPITAL BRIEF: Constanta Bank of Georgia Grows Microfinance Assets by 77%, Plans to Open 15 Branches in 2012

During 2011, Constanta Bank, a provider of microfinance services to micro- and small businesses in Georgia, witnessed a 77-percent growth in assets, a 71-percent growth in its credit portfolio and an 89-percent growth in the amount of loans issued relative to the previous year [1]. Constanta has increased its number of branches from 21 to 30 during the first quarter of 2012 and plans to open an additional 15 before the end of the year.

Within the last year, Constanta has rolled out several new products such as consumer loans and microsavings. The bank also introduced a deposit interest rate of 17 percent per year, resulting in deposits growing four times higher than anticipated [1]. In addition, the bank is looking to introduce automatic teller machines (ATMs) for its preferred customers. Going forward, the general director of the bank, Mr Levan Lebanidze, said that the bank would focus on developing agricultural financing products.

As of December 2011, Constanta Bank has total assets of USD 84 million, a gross loan portfolio of USD 66 million and approximately 29,000 active borrowers.

By Amira Berrada, Research Associate

About Constanta Bank: Constanta has been providing microfinance services to micro- and small businesses in Georgia since 1997. In December 2007, Constanta started operations as a joint stock company (JSC). Its 2011 annual report indicates total assets of USD 84 million, a gross loan portfolio of USD 66 million and approximately 29,000 active borrowers.

Sources and Additional Resources:

[1] http://finchannel.com/news_flash/GeoBanks/106758_Bank_Constanta_to_Open_

MicroCapital.org story, March 14, 2012, “MICROCAPITAL BRIEF: responsAbility Loans $1.5m to Constanta of Georgia, $2.5m to Eskhata of Tajikistan” https://www.microcapital.org/microcapital-brief-responsability-loans-1-5m

MicroCapital.org story, November 16, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe Lends $20m to ProCredit Bank Georgia for Microfinance, SMEs” https://www.microcapital.org/microcapital-brief-european-fund-for-southea

MicroCapital Universe Profile for Constanta Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=JSC…

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

 

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.