The European Bank for Reconstruction and Development (EBRD), an international finance institution headquartered in London, recently announced that it will make available a USD 50 million financial package to the Bank of Georgia, a private bank that operates in Georgia, Belarus and the Ukraine. EBRD intends the package to promote access to longer-term financing, competitiveness and energy efficiency among Georgia’s private micro, small and medium-sized businesses.
The package includes a USD 20 million credit line “to provide local entrepreneurs with medium-term financing of up to $1 million for development of their businesses” wherein “companies earning revenues in local currency will be able to borrow funds in Georgian Lari”; a USD 10 million energy efficiency loan “for on-lending to private sector industrial entities and residential customers to finance investments aimed at reducing energy consumption”; and a USD 20 million loan under the EBRD’s Medium-sized Co-Financing Facility “to finance investments and working capital of medium and large-sized Georgian companies” [1].
As of June 30, 2010, the Bank of Georgia reports total assets of USD 1.88 billion.
By Lindsey Shaughnessy, Research Associate
About the Bank of Georgia: The Bank of Georgia (BoG), which operates in Georgia, Belarus and the Ukraine, offers retail, corporate and investment banking services; insurance products; and asset and wealth management services to approximately 856,000 retail clients through several subsidiaries and 140 branches. As of June 30, 2010, BoG reports total assets of USD 1.88 billion.
About the European Bank for Reconstruction and Development (EBRD): The European Bank for Reconstruction and Development (EBRD) is an international 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 as well as commercial banks and non-bank microfinance institutions (MFIs). As of the end of 2008, EBRD has operating assets worth EUR 5.2 billion, the equivalent of over USD 7 billion. Operating assets for fiscal 2009 are EUR 6.1 billion (USD 8 billion).
Sources and Additional Resources:
[1] European Bank for Reconstruction and Development, “Bank of Georgia to receive EBRD support”, September 14, 2010. http://www.ebrd.com/pages/news/press/2010/100914.shtml
MicroCapital’s Microfinance Universe profile: Bank of Georgia
MicroCapital’s Microfinance Universe profile: European Bank for Reconstruction and Development (EBRD)
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