Project Description
MCFF will be used to provide medium- to long-term financing to Georgian private companies, clients of Cartu Bank, to meet their requirements for larger loans.
The operation will support the client’s business diversification strategy across Georgia and help to enhance its competitive position in the market.
Transition Impact
The transition impact of this equity investment will mainly arise from institutional development of the bank through changes in corporate governance, strategy and business development, operations and risk management systems. In addition, this investment will strengthen Cartu’s capital base thereby enhancing the ability of the bank to further expand its market share in Tbilisi and the regions and hence facilitate the competition in the banking sector as a whole. Via the MCFF and SME facilities, EBRD’s support of Cartu will add to the overall lending capability of the banking sector in Georgia thereby increasing financial intermediation. The proposed loans will increase the supply of funding to SMEs thereby increasing access to bank finance.
The Client
Cartu Bank, the sixth largest bank by assets in Georgia with total assets of USD 373 million and equity of USD 64 million, as of end of 2008.
EBRD Finance
USD 10 million (EUR 7.7 million equivalent) for the MCFF Non Recourse Portion.
Project Cost
EUR 32.1 million.
Environmental Impact
Screened FI.
Technical Cooperation
TC will be put in place to assist in the implementation of the Institution Building Plan.
Company Contact
George Nozadze, Head of FI Division
Cartu Bank
39a Chavchavadze Avenue,
0162 Tbilisi
Georgia
Tel: +995 95 22 22 83
Email: gnozadze@cartubank.ge
Business opportunities
For business opportunities or procurement, contact the client company.
For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
Public Information Policy (PIP)
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Text of the PIP
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.
