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Georgia's Crystal MFO confirms loan facility from Incofin Investment Management

Finance Materials 10 June 2020 13:34 (UTC +04:00)

BAKU, Azerbaijan, June 10

By Tamilla Mammadova – Trend:

Georgia's Crystal microfinance organization (MFO) confirmed $8 million senior loan facility from Incofin Investment Management (Incofin IM) for supporting its provision of innovative financial services to micro entrepreneurs and farmers across Georgia, Trend reports citing Georgian media.

This loan injection provided crucial reinforcement of Crystal’s liquidity position at a time of increasing market uncertainty in the immediate pre-crisis period.

Incofin Investment Management is a global independent impact investment firm, focused on rural and agricultural finance, driven by a desire to promote inclusive progress. As such, Incofin IM strives to provide the support entrepreneurs need in order to build sustainable businesses and to improve the lives of the more vulnerable or less privileged people.

The proceeds of this fund have already been directed in first quarter of 2020 toward Crystal’s continued delivery of critical financial products to vulnerable farmers and micro-entrepreneurs during the COVID-19 crisis, including increased access to credit products, liquidity to finance working capital, and business consultancy.

Crystal and Incofin IM have enjoyed a successful partnership since 2010 through a number of managed and advised funds. In 2016 agRIF (fund managed by Incofin) became an important shareholder of Crystal. Invest in Visions is partnering with Crystal on the debt side since 2015. This new facility is a clear sign of mutual intent to continue delivering on shared development goals of improved financial inclusion and entrepreneurial development across Georgia.

“Incofin’s partnership with Crystal spans a full decade during which the global and the local economy have seen ups and downs. It is part of the work of an impact investor to provide continued availability of support needed during both good and bad times. With Crystal, we are strongly aligned to pursue social outcomes, and have notably joined forces using technical assistance to measure such outcomes,” said Senior Managing Partner and Chief Investment Officer of Incofin IM Geert Peetermans.

“The decision to strengthen Crystal’s liquidity position in the turbulent pre-crisis period was an important contribution to our continued delivery of financial services during the COVID-19 pandemic. This transaction emphasizes continued international belief in the microfinance sector and in Georgia,” said Crystal's CEO Ilia Revia.

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