TBC Bank to Receive USD 55 Million from Entrepreneurial Development Bank

The Entrepreneurial Development Bank (FMO) has announced a grant of USD 55 million to two Georgian banks as part of a program to support the private sector in developing economies.

The FMO program, which has an overall portfolio of EUR 7.6 billion, focuses on assisting financial institutions, the energy sector, agrobusiness, and food and water systems in countries with developing economies.

The decision was announced at a press conference this Wednesday at the TBC Bank Head Office.

TBC Bank will receive USD 25 million over the next seven years, according to the new loan agreement, while Bank Republic will receive USD 30 million over a five year period.

In the last decade, ten loan agreements have already been signed between TBC Bank and FMO, with financial resources provided amounting to a total of USD 150 million.

“I’m delighted by the opportunity to continue our cooperation with FMO,” said Vakhtang Butskhrikidze, CEO of TBC Bank, at the press conference. “With these resources, TBC Bank will be able to strengthen its position in the micro, small and medium business segments and increase financing for the sectors that are the most vital for the Georgian economy. FMO is our long-time business partner, and we have numerous types of loan agreements with them already. It has been a TBC Bank shareholder since 2009, a time, which, as you all know, was an extremely difficult one for our country and our economy. FMO was a great supporter and became our shareholders and, furthermore, provided a subordinated loan. Of course, our cooperation will continue in the future.”

“I’m very proud that we’re able to sign two new contracts with both Bank Republic and TBC Bank. FMO has been active in Georgia for several years, supporting private sector development, and, as we see, the economy in the country is reportedly growing,” said Jan Willem Hoek, an investment officer for financial institutions in Europe and Central Asia. He went on to underline that TBC Bank is a stable, reliable and fast growing financial institution, which has been an active partner over the years.

Mr. Hoek also praised TBC Bank for adapting to the market and working very closely with its clients. The bank’s recent success, he said, demonstrates the burgeoning strength of the country’s financial sector overall.

“The uniqueness of this USD 55 million loan assigned to micro, small and medium size business is that it may be available in lari, which is essential for the de-dollarization program that the National Bank of Georgia and the government of Georgia are implementing,” said Giorgi Shagidze, Deputy CEO of TBC Bank. “TBC Bank is the leader in importing financial resources to our country. This year, in November/December alone, we’ve already signed contracts for USD 60 Million with other international financial institutions, which gives us the possibility to offer more loans.”

“TBC Bank and Bank Republic are both extremely active in assisting micro, small and medium businesses,” added Nika Kurdiani, another TBC CEO. “Transactions like these will enable us to support the sector even more, and that is extremely important for our country, as small and medium businesses are the backbone of the economy.”

Jos Douma, the ambassador of The Netherlands to Georgia, was also present. “This is a milestone,” he said, “because it’s proof that we, the Dutch and the FMO, are participating in this important process of the larification of the Georgian economy.”

The press conference ended with the signing of the loan agreement by TBC Bank and FMO representatives.

Nino Gugunishvili

22 December 2016 21:30