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Tuesday, March 15, 2005, #046 (0820)
Credit line to boost lending for SME's
KfW and Bank of Georgia ink deal for USD 4.5 million credit line
By Christina Tashkevich
Bank of Georgia CEO Lado Gurgenidze and KfW's representative in
Tbilisi, Christian Calov, sign the agreement on Monday Bank of Georgia
signed a USD 4.5 million credit guarantee agreement with KfW, the
German development bank, on Monday.
According to the agreement, the Georgian bank will get access to the
specially created Credit Guarantee Fund (CGF). The CGF allows Bank of
Georgia to borrow in international capital markets up to USD 4.5 million.
The bank then must loan these funds to small and medium enterprises.
"I am delighted that Bank of Georgia has been selected as a partner bank at
a time when the bank is in the process of implementing a series of strategic
initiatives aimed at providing better financing opportunities for its
clients in the small and medium business sector," said the bank's Chief
Executive Officer Lado Gurgenidze.
He hopes the guarantee will enhance "the bank's ability to draw upon
international funds to on-lend to the SMEs with loan maturities of up to
five years."
On his part, KfW's representative in Tbilisi, Christian Calov, said KfW is
demonstrating through this project that it uses its knowledge so that
Georgia can be closer to international markets. "The CGF helps Georgian
banks move closer to European standards and it gives European banks an
opportunity to work in the Caucasus region," he said on Monday.
Calov added that the Bank of Georgia is dedicated to the "further
strengthening of its already significant presence in the SME sector."
According to KfW representative, the CGF will also provide technical
assistance to Bank of Georgia in training of staff and advice on lending
procedures. The non-profit Savings Banks Foundation for International
Cooperation will provide support to the Bank of Georgia in the establishment
of lending procedures.
The Bank of Georgia was selected in KfW tender announcement in 2004. In
addition to Bank of Georgia, two other local banks-TBC Bank and Bank
Republic have been selected for participation in the CGF.
KfW is implementing the CGF project in Armenia and the KfW says one may be
launched in Azerbaijan in the near future.
Last Wednesday the Bank of Georgia introduced two new commercial projects.
Microloan Plus is designed for the owners of small businesses. According to
the bank, when receiving a loan under this project a person also will get
VISA Electron and Maestro debit cards. They also automatically get life and
workers-compensation insurance.
The bank says it is the first project of its kind in Georgia and that it
will soon spread to all Georgian regions.
In addition, the Bank of Georgia also announced last week it launched
enhanced current accounts for individuals and corporate clients,
specifically designed with a new nine-digit account numbering system for
easier use internationally.
Tuesday, March 15, 2005, #046 (0820)
Credit line to boost lending for SME's
KfW and Bank of Georgia ink deal for USD 4.5 million credit line
By Christina Tashkevich
Bank of Georgia CEO Lado Gurgenidze and KfW's representative in
Tbilisi, Christian Calov, sign the agreement on Monday Bank of Georgia
signed a USD 4.5 million credit guarantee agreement with KfW, the
German development bank, on Monday.
According to the agreement, the Georgian bank will get access to the
specially created Credit Guarantee Fund (CGF). The CGF allows Bank of
Georgia to borrow in international capital markets up to USD 4.5 million.
The bank then must loan these funds to small and medium enterprises.
"I am delighted that Bank of Georgia has been selected as a partner bank at
a time when the bank is in the process of implementing a series of strategic
initiatives aimed at providing better financing opportunities for its
clients in the small and medium business sector," said the bank's Chief
Executive Officer Lado Gurgenidze.
He hopes the guarantee will enhance "the bank's ability to draw upon
international funds to on-lend to the SMEs with loan maturities of up to
five years."
On his part, KfW's representative in Tbilisi, Christian Calov, said KfW is
demonstrating through this project that it uses its knowledge so that
Georgia can be closer to international markets. "The CGF helps Georgian
banks move closer to European standards and it gives European banks an
opportunity to work in the Caucasus region," he said on Monday.
Calov added that the Bank of Georgia is dedicated to the "further
strengthening of its already significant presence in the SME sector."
According to KfW representative, the CGF will also provide technical
assistance to Bank of Georgia in training of staff and advice on lending
procedures. The non-profit Savings Banks Foundation for International
Cooperation will provide support to the Bank of Georgia in the establishment
of lending procedures.
The Bank of Georgia was selected in KfW tender announcement in 2004. In
addition to Bank of Georgia, two other local banks-TBC Bank and Bank
Republic have been selected for participation in the CGF.
KfW is implementing the CGF project in Armenia and the KfW says one may be
launched in Azerbaijan in the near future.
Last Wednesday the Bank of Georgia introduced two new commercial projects.
Microloan Plus is designed for the owners of small businesses. According to
the bank, when receiving a loan under this project a person also will get
VISA Electron and Maestro debit cards. They also automatically get life and
workers-compensation insurance.
The bank says it is the first project of its kind in Georgia and that it
will soon spread to all Georgian regions.
In addition, the Bank of Georgia also announced last week it launched
enhanced current accounts for individuals and corporate clients,
specifically designed with a new nine-digit account numbering system for
easier use internationally.