Washington, D.C., and Tbilisi, Georgia, September 24, 2008
—The Bank of Georgia has become the first Georgian bank to join the IFC Global Trade Finance Program. IFC, a member of the World Bank Group, will provide the bank with a trade finance line of $20 million, allowing it to provide guarantees against its clients’ trade transactions and facilitate trade in the country.
The IFC Global Trade Finance Program supports trade with emerging markets worldwide and promotes the flow of goods and services to and from developing countries. IFC provides partial or full guarantees against underlying trade instruments and covers the payment risk of participating issuing banks. The program allows issuing banks to increase the volume and value of trade transactions, with enhanced tenors and access to competitive pricing terms. Participating banks gain access to finance and a network of global correspondent banks worldwide.
Nicholas Enukidze, Chairman of the Supervisory Board of Bank of Georgia, said, “We are very pleased that IFC has selected the country’s leading trade finance provider as its first Georgian partner bank under the Global Trade Finance Program. This renewed partnership will enhance our trade financing capability and strengthen trade in the region. It underscores IFC’s confidence in the Georgian economy and the Bank of Georgia.”
Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said, “The Bank of Georgia has been an IFC client since 2000, and with this trade line, we are happy to expand our partnership. It is part of a targeted series of investments that IFC will be making with existing client banks to support the banking system and sustain access to finance for local small and medium enterprises and individuals.”
Georgina Baker, IFC Director for Global Financial Markets and Short Term Finance, said, “The commitment to provide trade finance enables businesses to reach new markets, under competitive terms. As the leading banking group in the country, the Bank of Georgia’s partnership with the Global Trade Finance Program will support transactions in emerging and post-conflict markets.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totalled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
Georgia joined IFC in 1995. Since then, IFC has approved more than $100 million in investments in the country, mainly projects in financial services, infrastructure, and manufacturing.
About JSC Bank of Georgia
The Bank of Georgia is Georgia’s leading bank, with the largest asset, loan, deposit, and equity base. As at July 31, 2008, the bank held a 34 percent market share by total assets. It is a universal bank that provides a wide range of retail, corporate, and investment banking services to customers across Belarus, Georgia, and Ukraine. The bank also provides a wide range of corporate and retail insurance products, as well as asset and wealth management services through its wholly-owned subsidiary, Aldagi BCI. It has 142 branches and serves over 880,000 retail and more than 128,000 corporate current accounts. The bank has credit ratings from all three major rating agencies: Standard & Poor’s, Fitch, and Moody’s.
