First local currency loan in Georgia

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Author: Tamar Kikacheishvili

The European Bank for Reconstruction and Development (EBRD) said today that it will offer a currency loan to micro and small enterprise in Georgia.

The bank will give a non-bank microfinance institution, Crystal, a loan equivalent to $1 million. With this move the bank aims to support the expansion of the organization’s operations and develop its portfolio of MSE credits, particularly in rural areas and the agricultural sector.

Established in 1998, Crystal operates in Western Georgia and in some rural areas where no other lenders operate.

In an attempt to reduce excessive dependency on foreign currency in its countries of operation, the EBRD has set the promotion of local currency borrowing as a priority.

The loan comes with a $100,000 in grant funds, which will be used to strengthen Crystal’s corporate governance and risk management.

Since the beginning of its operations in Georgia, the EBRD has committed over 663 million Euros .

23 December Wed 2009, 12:08:35