MICROCAPITAL BRIEF: Bank of Georgia Borrowing $200m from ADB, JICA for MSMEs, Especially Those Owned by Women

The Bank of Georgia (BOG), a UK-based institution active in Georgia, recently obtained a loan of GEL 617 million (USD 200 million) to on-lend micro-, small, and medium-sized enterprises (MSMEs), especially those owned by women. Half of the loan is from the Asian Development Bank (ADB), a development finance institution active in Asia and the Pacific, and the other half is funded by the Japan International Cooperation Agency (JICA).

To support the loan package, ADB will help BOG implement “technical assistance resources to support women-owned MSMEs.” Suzanna Gaboury, ADB’s Director General for Private Sector Operations, says the project will work to “directly address gender equality and women’s empowerment to narrow gender disparities.”

The Director General of JICA’s Private Sector Partnership and Finance Department, Shohei Hara, stated that the “facility will promote further sustainable economic growth of MSMEs and women’s social success in Georgia by improving their access to financial services.”

The Bank of Georgia provides retail and business banking as well as wealth management services and employs 6,000 people at 270 branches. As of 2021, its assets total GEL 20 billion (USD 6.5 billion), its loan portfolio is valued at GEL 13.3 billion (USD 4.3 billion), and its customer deposits total GEL 13.4 billion (USD 4.35 billion).

Founded in 1966, ADB is headquartered in Manila, the Philippines. Its mission is to help its 68 member countries reduce poverty and otherwise improve the quality of life of Asia’s citizens. As of 2020, ADB had total assets of USD 272 billion, including a loan portfolio of USD 130 billion.

Established in 2002, JICA coordinates international development for Japan’s government. During 2019, JICA provided JPY 1.5 trillion (USD 13.3 billion) in loans and JPY 175 billion (USD 1.5 billion) for technical assistance.

By Adhya Singh, Research Associate

Sources and Additional Resources

ADB press release
https://www.adb.org/news/adb-and-bank-georgia-sign-100-million-loan-support-micro-small-and-medium-sized-enterprises

ADB homepage
https://www.adb.org/

BOG homepage
https://bankofgeorgia.ge/

JICA homepage
https://www.jica.go.jp/

JICA 2020 financial statements
https://www.jica.go.jp/english/ir/financial/c8h0vm0000c65af0-att/FY2019_fia.pdf

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