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EBRD and BP/BTC help microfinance bank to expand
ProCredit Georgia will use $750,000 to open three new branches
BP Exploration (Caspian Sea) Ltd, on behalf of its joint venture partners in
the Baku-Tbilisi-Ceyhan project to run an oil pipeline from the Caspian to the
Mediterranean Sea, has signed an agreement with the European Bank for
Reconstruction and Development (EBRD) under which ProCredit Bank of Georgia,
the country’s only specialised microfinance bank, will receive $750,000 of
technical cooperation funding.
The agreement, signed during the EBRD’s Annual Meeting here, marks the launch
of the first official joint project with the EBRD related to the EBRD-BP/BTC
co-financing facility to be established as a core component of the Regional
Development Initiative (RDI). The initiative aims to deliver a long-term
contribution to the social and economic development of Azerbaijan, Georgia and
Turkey by combining the experience, skills and resources of the oil partners.
This microfinance venture was initiated by the EBRD. It will help ProCredit
Bank of Georgia set up three new branches in the towns of Telavi, Rustavi and
Khashuri which do not yet have access to banking services. By financing micro-
and small enterprises and agricultural businesses, ProCredit Bank will have a
visible and lasting effect on local employment. The three branches plan to
issue 4,000 loans to micro- and small businesses for a total amount of $7.6
million within the next two years.
David Glendinning, Communications and External Affairs Director of BP Georgia,
said: “This project aims to improve the socio-economic situation and living
conditions in two areas of Georgia through which the pipeline passes and one
other area. By supporting the regional expansion of ProCredit Bank, we will be
contributing to much-needed access to finance and banking for micro- and small
enterprises in these areas to maximize the positive impacts of BP and its oil
partners’ presence in the region.”
Noreen Doyle, the EBRD’s First Vice-President, said: “The opening of these
branches is especially important because their financing will continue to
exist after the interim jobs provided by the pipeline come to an end. Their
existence will help promote long-term development and increased employment.”
Press contacts:
Lucy Almond, BP Georgia - Tel: +995 99 47-15-17; Email: almondla@bp.com
Vanora Bennett, London - Tel: +44 20 7338 6940; E-mail: bennettv@ebrd.com
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