BSTDB Expands its Trade Finance Program in Georgia

Press Release | 01-Mar-2006

The Black Sea Trade & Development Bank will make available a USD 3 million revolving credit line to the United Georgian Bank for the purpose of providing short-term export and import financing to Georgian companies. The facility will be used to finance sub-loans extended by the United Georgian Bank to exporting and importing companies in Georgia for the period of up to 360 days.

The operation strengthens the BSTDB effort to improve the availability of funds for short-term trade financing in Georgia, following earlier BSTDB credit lines for trade financing in the amount of USD 8 million, as well as Micro and SME finaning in the amount of USD 11 million extended to other Georgian banks selected by BSTDB as financial intermediaries.

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United Georgian Bank (UGB) was established in 1995 and became one of the largest universal banks in Georgia. At present it is majority owned by Vneshtorgbank (Russia) and has EBRD as a shareholder. Among other activities, UGB acquired good experience in servicing international trade transactions, including those among countries of the Black Sea region.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. With an authorized capital of SDR 1 billion (approx. USD 1,45 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa2 and Short Term P2 by Moody’s.