In December 2020, OeEB signed a long-term credit line of USD 20 million arranged by Dutch development bank FMO to JSC Bank of Georgia. The funds will be used to strengthen Bank of Georgia's capital base, thereby helping to strengthen the country's private sector.
|Project name||Bank of Georgia|
|Sector||Financial sector / Microfinance / SME|
|Project volume||USD 20 million|
|Project partner(s)||JSC Bank of Georgia|
The capital requirements for Georgian banks have been gradually adjusted by the local central bank to the Basel Ill regulations since December 2017. In order to be prepared for the stricter capital requirements in the future, Bank of Georgia is striving to strengthen its capital base. The loan provided by OeEB counts as supplementary capital and thus strengthens the bank's capital position.
Bank of Georgia will use the funds to expand its customer portfolio - in particular to lend to local micro, small and medium-sized enterprises, which are a cornerstone of the Georgian economy and therefore essential for the further development of the country and the creation of jobs.
Already in 2012, OeEB provided Bank of Georgia with financing in the form of a risk sub-participation in a KfW loan to finance the construction or rehabilitation of small and medium-sized hydropower plants. More about the project