Dutch Development Bank Improves Access to Finance in Georgia
By Tea Mariamidze
Thursday, October 25
According to the agreement, five-year loan facility will be used primarily to finance young entrepreneurs running micro, small and medium-sized enterprises in Georgia, as well as young retail customers requiring mortgage loans. The local currency funding will be obtained by FMO through a public placement of bonds on the Georgian Stock Exchange.
Vakhtang Butskhrikidze, CEO of TBC Bank noted that TBC started connecting with FMO in 2006, adding during 12 years, FMO has provided more than $350 million in MSME and mortgage loan financing, as well as local currency and subordinated loans.
“Local currency funding is of great importance for the Georgian financial sector as it allows us to supply financing for the increasingly high demand in local currency loans and enables us to further strengthen the Bank's leading position in the MSME segment. In addition, a public placement of bonds will further support local capital market development in Georgia. This transaction reflects both institutions' commitment to continued cooperation and we look forward to more years of productive partnership,” he said.
According to FMO's Chief Executive Officer, Peter van Mierlo, FMO is proud to continue its long-standing and successful relationship with TBC Bank in Georgia.
“This new transaction will enable TBC to reduce inequality and support financial inclusion, particularly among young entrepreneurs as they will now have access to financial services. This is an important contribution to stimulating job creation in Georgia,” he noted.
The Netherlands Development Finance or Dutch development bank is a bilateral private-sector international financial institution founded 1970, based in the Hague, the Netherlands. It is licensed as a bank and supervised by the Dutch Central Bank. In 2017 its assets were over US$10 billion.