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Tbilisi, Georgia, April 3, 2009—
IFC, a member of the World Bank Group, will provide a $10 million trade finance guarantee to Georgia’s Bank Republic to help the bank finance foreign trade transactions of local companies.
Bank Republic has joined the IFC Global Trade Finance Program as an issuing bank. Under the program, IFC’s guarantees will help Bank Republic finance the import and export operations of its clients, including small and medium enterprises. This will increase trade transactions by providing financing with enhanced tenors and competitive pricing terms. Bank Republic will have access to a global network of 250 banks participating in the program.
“We will use IFC’s guarantee as additional leverage to improve trade finance activities in Georgia,” said Gilbert Hie, Chief Executive Officer of Bank Republic. “We appreciate the strong support from IFC, particularly in the current financial environment.”
Nena Stoilijkovic, IFC Director for Central and Eastern Europe, said: “We are glad to support Bank Republic, our long-term partner. By joining IFC's trade finance program, the bank will be able to help its clients reach new markets and support foreign trade in the region.”
The IFC Global Trade Finance Program, launched in 2005, 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 for individual trade transactions and covers the payment risk of 145 issuing banks in 72 countries.
IFC began working with Bank Republic in 2005, through IFC’s corporate governance project in Georgia. As a result, Bank Republic became the first Georgian bank to attract western investors. In the past two years, IFC has invested about $42 million in Bank Republic to help expand the bank’s lending programs for small and medium enterprises, mortgages, and education. For more information about Bank Republic, visit
www.republic.ge
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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 totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
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