Bank Republic and KfW agree on USD 16 million credit line

Bank Republic of Societe General Group and the German KfW Development Bank signed a USD 16 million credit line agreement.

The credit line is split into two credits of USD 8 million each, one of them having a five year tenure and the second a ten year tenure.

The five year credit will refinance SME lending and the ten year loan will help the bank refinance one the fastest growing business lines of Bank Republic—long-term mortgage loans.

The bank also announced on December 10 that it plans to implement numbers of the new projects to attract more funds from international financial institutions.

KfW was the first international institution that started cooperation with Bank Republic in 2004. At that time KfW guaranteed a loan from German Commerzbank to Bank Republic. KfW also helped the bank to strengthen the SME lending and retail banking activities of Bank Republic.



UNDP and Economy Ministry present study on potential EU–Georgia free trade agreement

The prospects of a potential free trade agreement between the European Union and Georgia were discussed at a joint conference between the Ministry of Economic Development and the UNDP Thursday. Carried out by a group of international and Georgian experts, the study examines the effects the agreement would have on the economies of Georgia and the EU. It also provides recommendations on how a free trade agreement can promote economic growth. The UNDP and the Ministry for Economic Development also signed an agreement that will begin a program of assistance for the Department of Foreign Trade and International Economic Relations.



Prime minister announces new easy credit program

On December 11, Prime Minister Lado Gurgenidze called on banks to participate in a program that will allocate low interest loans to small businesses. The prime minister said the program aims to increase employment and assist Georgians who are trying to set up their own business. Gurgenidze emphasized that participation in the program is voluntary, adding that the National Bank of Georgia will coordinate the program. “We still have ideas in store and one of them is focused on economically depressed regions; we encourage banks to start generating economic activity in these regions,” he said. Gurgenidze expressed hope that the first visible results of the will be seen in late winter or early spring.



TBC Bank goes to Azerbaijani market

TBC Bank announced it has entered the Azerbaijan market, after buying 75 percent of SOA Credit, an Azerbaijani company. The bank said Azerbaijan was chosen as it is Georgia’s strategic partner and has a stable financial market. SOA Credit is part of Shorebank, based in Chicago. Under TBC Bank ownership SOA Credit will offer mortgage loans and loans for small and medium sized businesses. “It’s important that Shorebank is our partner, their experience of providing European and Asian financial companies with technical assistance is a prerequisite for future success in the Azerbaijani finanical market,” said Mamuka Khazaradze, head of TBC Bank’s supervisory board.