BSTDB increases financing to Georgian SMEs
Press Release | 19-Feb-2008
BSTDB made available a USD 10 million SME loan facility to Procredit Bank Georgia.
Having a tenor of three years, the facility delivers the much-needed medium-term financing to the Georgian market. It intends to finance sub-loans offered by Procredit Bank Georgia to micro, small and medium-sized enterprises in Georgia.
The borrower already has a successful credit history with BSTDB’s previous SME facilities for the amounts of USD 5 and USD 6 million that have been successfully utilized.
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ProCredit Bank Georgia (previously the Microfinance Bank of Georgia) started operations in May 1999. The bank was established by several IFIs to provide financial services to micro and small businesses in Georgia and is currently a development oriented full service bank offering a wide range of banking products and services. It is part of ProCredit Holding AG, a group of 19 microfinance banks headquartered in Frankfurt, Germany and operating in transition economies and developing countries in Africa, Latin America and Eastern Europe. The Bank focuses on lending to micro, small and medium-sized enterprises in order to improve access to financing for the dynamic and fast-growing SME sector in the country. Majority shareholders of the Bank are well-established international organizations including, among others, KfW, IFC, EBRD and Procredit Holding AG. Procredit Bank Georgia is rated BB- by Fitch.
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 1,5 billion), the Bank supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa1 and Short Term P2 by Moody’s.