Foreign Participation in Capital of Georgian Banks Exceeds $100mln

Business Materials 24 February 2007 14:58 (UTC +04:00)

Georgia , Tbilisi / Trend , corr N. Kirtskhalia/ The direct investments put by foreign financial institutions and other non-residences to the capital of Georgian commercial banks to February 1, 2007 exceeded $101 mln., a source in the Georgian National Bank told Trend Correspondent to Tbilisi .

As compare with January, 2006, the volume of investments put into the capital increased by 61 Laris. Today, 10 Georgian commercial banks have a foreign participation in their capitals. The volume of credit lines and loans granted by foreign financial institutions for 8 Georgian commercial banks to February 1 reached 694 mln. Laris, that is on 352 mln. Laris exceeds the corresponding figures of 2006.

The investments to the authorized capital and credit lines to Georgian banks have been granted by the following financial institutes: EBRD, IFC, DEG, KFW, "ProKreditBank" JSC, "VneshTorgBank" (VTB), Bank Austria Cretitenstall, "CascadeBank", "Black Sea Bank for Trade and Development".

The foreign investments to the capital of Georgian commercial banks are carried out both on the basis of private interests and within the support of institutional building in the country. The participation of foreign banks in the market increases strong competition and makes credit resources cheaper. It also further introducing new principles on rendering services on the basis of new technologies.

The investment interest of the Georgian banking system is stipulated by the dynamics of its development. In addition, investments to the countries with the increasing economy will bring a significant return at comparable short period.