US$ 1.5 million loan will promote foreign trade in Georgia
Press Release | 17-Jul-2000
The Black Sea Trade and Development Bank (BSTDB) will make available US$ 1.5 million credit line to the Bank of Georgia, which was chosen as a Financial Intermediary of BSTDB for the purpose of lending trade finance products in Georgia. The signing ceremony for the loan agreement took place on July 17, 2000 in Tbilisi. The agreement was signed by Mr. Ersoy Volkan, President of BSTDB and Mr. Vladimir Pateishvili, President of the Bank of Georgia.This is the first operation of BSTDB in Georgia.The credit line will be used for short-term trade finance programmes supporting export of value added products to generate more employment, productivity and hard currency revenues in Georgia. The BSTDB Pre-Export Finance Programme will provide loans for up to 180 days. In addition to getting the necessary pre-export financing, Georgian exporters may be able to offer credit terms to their buyers, thus having a stimulating impact on regional trade.
The BSTDB delegation had meetings with Dr. George Arsenshvili, State Minister of Georgia, as well as with the Ministers of Finance and Industry, to discuss specific areas of cooperation. The State Minister expressed the full support of the Georgian Government to the BSTDB and stressed the importance of the first BSTDB project in the country as export promotion is a priority area. In May 2001 the country will host the 3rd BSTDB Annual Meeting and the Black Sea Business Day, under the patronage of the President of Georgia. BSTDB is currently working on a number of projects in agribusiness involving Georgia, Azerbaijan, and Russia.
The Bank of Georgia is a fast growing leading private bank in Georgia incorporated as a joint stock company in 1994. It has 32 branches and 15 sub-branches spread all over Georgia. The Bank established financial cooperation with EBRD, World Bank, and a number of reputed foreign private banks. The Bank of Georgia is active in export financing. Its strategy is to support increasing trade in the Black Sea region, with an emphasis on trade between Georgia, Russia, Türkiye, Armenia, Azerbaijan, Ukraine, and Bulgaria.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established in 1998 by eleven countries of the Black Sea Economic Cooperation Organization (BSEC): Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, Ukraine, and has its headquarters in Thessaloniki (Greece).
The authorized capital of the Bank is SDR 1 billion (about US$ 1.35 billion). The Bank supports economic development and regional cooperation by providing financing for projects and trade transactions to public and private enterprises in its Member States. During one year since its inauguration, the BSTDB launched seven projects in energy sector, shipbuilding, development of small enterprises, and trade financing to the total amount of over US$ 70 million.