The European Bank for Reconstruction and Development (EBRD), a development finance institution headquartered in London; the National Bank of Georgia, the Georgian central bank; and the Georgian Ministry of Finance recently signed a memorandum of understanding (MOU) to launch EBRD’s “Local Currency Lending Programme” in Georgia. The MOU outlines a framework for the promotion of providing financing in the Georgian Lari to eligible banks, microfinance institutions (MFIs) and local enterprises at interest rates that are intended to be low enough to boost the local-currency loan market. The program is part of a local-currency risk-sharing program for “early transition countries” that is supported by EBRD and several donor countries in an effort to help reduce dependence on international financing and foreign-currency risk. EBRD’s operating assets for fiscal 2009 were reportedly EUR 6.1 billion (USD 8 billion).
By Jacqueline Foelster, Research Associate
About The European Bank for Reconstruction and Development (EBRD): EBRD is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). Its operating assets for fiscal 2009 were reportedly EUR 6.1 billion (USD 8 billion).
About National Bank of Georgia (NBG): The National Bank of Georgia (NBG) is the central bank of the Republic of Georgia. It is in charge of monetary policy, is the banker and fiscal agent of the Georgian government, and has the sole right to issue money in the country. It is governed by the Council of the National Bank, whose members are nominated by the President and confirmed by Parliament.
Source and Additional Resources:
[1] The Financial, May 2, 2011, “EBRD supports local currency lending in Georgia”, http://www.finchannel.com/Main_News/Economic/86162_EBRD_supports_local_currency_lending_in_Georgia/
MicroCapital.org Brief, April 15, 2011, “European Bank for Reconstruction and Development (EBRD) to Promote Energy Efficiency in Poland Through $12m Loan to BZ WBK Finance & Leasing”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-promote-energy-efficiency-in-poland-through-21m-loan-to-bz-wbk-finance-leasing/
MicroCapital.org Brief, September 27, 2010, “European Bank for Reconstruction and Development (EBRD) Extends $50m Financing Package to Bank of Georgia for Efforts Including On-lending to Small and Medium-sized Enterprises, Residential Energy Efficiency”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-extends-50m-financing-package-to-bank-of-georgia-for-efforts-including-on-lending-to-small-and-medium-sized-enterprises-re/
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Universe Profile: National Bank of Georgia (NBG), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+Georgia+%28NBG%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Uzpromstroybank (UzPSB) Borrowing $15m from EBRD for SMEs in Uzbekistan
- MICROCAPITAL BRIEF: EIB Lends Credo Bank $10m for MSMEs in Georgia
- MICROCAPITAL BRIEF: EU Guaranteeing $113m to Support $490m in Lending by EBRD to MSMEs in Eastern Europe, North Africa, Western Asia
- MICROCAPITAL BRIEF: EBRD Loans $21m to BMCI of Morocco as Part of Women in Business (WiB) Program
- MICROCAPITAL BRIEF: EBRD Loans $4.4m to KEP Trust of Kosovo with Focus on Rural, Women-led MSMEs
