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EBRD helps growth of Georgia leasing market
Bank lends $3 million to and takes equity stake in TBC Leasing
The European Bank for Reconstruction and Development is fostering the
development of Georgia’s fledgling leasing market by cooperating with TBC
Leasing. The Bank is providing a 5-year $3 million loan to the company for
making leases to privately owned Georgian enterprises and is acquiring 10 per
cent of its shares to support efficiency and skills development.
In Georgia, where the leasing sector is in the early stages of development,
the company is one of only three to have started operating. As Georgia’s
economy has improved in the past two years, demand for leasing has increased.
For 2006 the potential demand for leases is forecast to exceed $22 million. A
healthy leasing industry will help bring increased flows of financing to the
productive sector of the economy and facilitate the growth of domestic
production. TBC Leasing’s target market is small and medium sized enterprises
which will benefit from asset based finance to extend their business
activities.
The EBRD is committed to supporting the development of the non-bank financial
sector in Georgia. As well as supporting the leasing industry, this investment
will support the private-sector small and medium sized enterprises seeking
leasing contracts from TBC Leasing.
TBC Leasing, which was set up in September 2003, is a wholly owned subsidiary
of JSC TBC Bank, the largest bank by assets in Georgia.
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