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Tbilisi, Georgia, January 16, 2013
—IFC, a member of the World Bank Group, is partnering with Georgia’s Kor Standard Bank (KSB) to help the bank expand financing for small and medium enterprises, supporting their growth, job creation, and contributing to the increased competitiveness of Georgia’s economy.
IFC will provide a loan of $7 million to KSB Bank to extend term funding for small and medium enterprises, which are often underserved by commercial banks. As a result, the number of loans to be provided by the bank to smaller enterprises is expected to triple by the end of 2016. IFC is the first international finance institution to support KSB Bank with long-term funding. IFC’s support to the bank is also expected to encourage other potential investors to support the bank in funding small and medium enterprises.
“KSB Bank has chosen a new strategy recently, which entails improving access to finance for small and medium enterprises," said George Glonti, CEO of KSB Bank. "Our cooperation with IFC will help us meet the long-term funding needs associated with these clients.”
Thomas Lubeck, IFC Regional Manager for the South Caucasus said: “Small and medium enterprises provide an important share of employment in Georgia. The funding will enable those entrepreneurs to modernize their businesses, employ more workers, and contribute to poverty reduction. We are happy to be partnering with Kor Standard Bank.”
Georgia became a member of IFC in 1995. Since then IFC has invested $583 million in 43 projects across various sectors and additionally supported regional projects developed in the country. IFC has also implemented a number of advisory projects focused on the development of the private sector.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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