Project description
and objectives:
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The proposed project is in support of the Bank’s Financial Sector Strategy for
Georgia which aims to strengthen the sector by addressing identified gaps and
weaknesses and promoting best practice. The Framework will enable the Bank to
increase both the amount and variety of medium-term funding available to a
range of financial intermediaries.
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Sub-projects:
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- Georgian Financial Sector F/W - Basis Bank (MSME Loan)
- Georgian Financial Sector F/W-Bank Republic MSE Loan
- Georgian Financial Sector F/W-Cartu Bank SME Loan
- Georgian Financial Sector FW-TBC Bank Mortgage Line II
- Bank Republic Equity (Capital Increase)
- Basis Bank Equity Investment - Georgian Financial Sector F/W
- Bank Republic Subordinated Debt
- TBC Bank SME Line
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Transition impact:
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The is expected to have three major sources of transition impact: Market
expansion and competition for MSME lending, leasing, insurance and consumer
finance through improvements in operational efficiency and the increased
amount of financing available which will increase competition and lessen the
concentration in specific sub-sectors. The project will also have a
demonstration effect and is expected that GFSF will broaden the product lines
of financial intermediaries to include new or /underdeveloped products such as
insurance, leasing, mortgage and consumer finance. Finally, the project is
also expected to contribute to the Transfer of skills by providing required
technical assistance tailored for each financial intermediary to accompany
transactions on an as-needed basis.
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The client:
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Existing Partner Banks and new partner financial intermediaries including
banks, leasing, mortgage and insurance companies (FIs). The first partner
bank under GFSF will be Basis Bank.
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EBRD finance:
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The product range under GFSF will include senior debt facilities for MSE and
SME on-lending, mortgage lines, consumer finance, syndicated loans,
quasi-equity and equity investments.
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Total project cost:
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USD 75 million.
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Environmental impact:
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Screened FI. All transactions under this framework will comply with EBRD’s
Environmental Procedures for Local Banks. These include compliance with
applicable national environmental, health, safety and labour legislation,
adherence to the Environmental Exclusion List, submission of Annual
Environmental Report to the Bank and nomination of a senior staff member in
charge of the environmental issues.
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Technical
cooperation:
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Previous TC has been provided to existing financial intermediaries including
support for MSME and mortgage lending. Funds were provided by the EU and the
ETC Multi-Donor Fund.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Not applicable.
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EBRD contact:
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Irakli Mekvabishvili, Operation Leader: mekvabii@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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