Georgian TBC Bank enters loan agreement with European Investment Bank
BAKU, Azerbaijan, December 24
By Tamilla Mammadova – Trend:
Georgian TBC Bank has signed a loan agreement for the equivalent of 90 million lari ($31.4 million) with the European Investment Bank (EIB), Trend reports via the London Stock Exchange (LSE).
As reported, the funds would be available to draw either in euro, USD or Georgian lari.
The five-year loan facility would be used primarily to finance micro, small and medium size businesses in Georgia, and support the development of private enterprise.
"I am very pleased that over time we have built such a successful partnership with the European Investment Bank," said the Chief Executive Officer of TBC Bank Vakhtang Butskhrikidze.
This is TBC's first transaction in Georgian lari with the EIB, and is a testament to the truly close working relationship since the launch of partnership in 2012, he said.
Butskhrikidze said that local currency funding was of "great importance" for the Georgian financial sector, as it allowed to reduce dependence on borrowing in foreign currencies.
Local currency funding will protect business owners and households from direct exposure to exchange rate risk while it helps to de-dollarize TBC Bank's portfolio, the report said.
Follow the author on Twitter: @Mila61979356