MICROCAPITAL BRIEF: International Finance Corporation Loans $7m to Georgia’s Kor Standard Bank for Small and Medium-sized Enterprises (SMEs)

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has agreed to loan USD 7 million to Kor Standard Bank (KSB), a financial institution in the republic of Georgia, to increase funding for small and medium-sized enterprises. The funds are expected to triple – from an unspecified level – the number of loans provided by KSB to smaller enterprises by the end of 2016.  The partnership also is intended to convince other investors to support KSB’s funding of small and medium-sized enterprises.

Since Georgia became a member of IFC in 1995, IFC has invested USD 583 million in 43 projects in the country [1]. For the year 2011, KSB reported total assets of GEL 308 million (USD 186 million) and a gross loan portfolio of GEL 197 million (USD 119 million) [2]. As of 2012, IFC reported total assets of USD 75.7 billion.

By Brendan Millan, Research Associate

About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the World Bank group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC reported total assets of USD 75.7 billion.

About Kor Standard Bank (KSB)

Founded in 1999, KSB is a financial institution in the republic of Georgia. For the year 2011, KSB reported total assets of GEL 308 million (USD 186 million) and a gross loan portfolio of GEL 197 million (USD 119 million). Additional financial details on the bank, such as return on assets and return on equity, are unavailable.

Sources and Additional Resources:

[1] International Monetary Fund: “IFC Partners with Georgia’s Kor Standard Bank to Support Small and Medium Businesses” by Tamar Barbakadze, http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/2407BD418CE5436F85257AF50046C8B1

[2] Kor Standard Bank: “Consolidated Financial Statements”, http://www.korstandardbank.com/admin/editor/uploads/files/IFRS%20FS_KSB_2011_ENG_FIN.pdf

MicroCapital.org story, January 7, 2013, “International Finance Corporation Loans $15m to AccessBank to Aid Small Enterprises, Microentrepreneurs in Azerbaijan”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-loans-15m-to-accessbank-to-aid-small-enterprises-microentrepreneurs-in-azerbaijan/

MicroCapital.org story , October 30, 2012, “International Finance Corporation Aims to Boost Entrepreneurship in Romania with $10m Loan to Patria Credit”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-aims-to-boost-entrepreneurship-in-romania-with-10m-loan-to-patria-credit/

MicroCapital.org story, April 16, 2012, “Constanta Bank of Georgia Grows Microfinance Assets by 77%, Plans to Open 15 Branches in 2012”, https://www.microcapital.org/microcapital-brief-constanta-bank-of-georgia-grows-microfinance-assets-by-77-plans-to-open-15-branches-in-2012/

MicroCapital Universe Profile: International Finance Corporation (IFC),

MicroCapital Universe Profile: Kor Standard Bank (KSB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kor+Standard+Bank+%28KSB%29#Kor_Standard_Bank_KSB_

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