Tbilisi, Georgia, January 16, 2013—IFC,
a member of the World Bank Group, is partnering with Georgia’s Kor Standard
Bank (KSB) to help the bank expand financing for small and medium enterprises,
supporting their growth, job creation, and contributing to the increased
competitiveness of Georgia’s economy.
IFC will provide a loan of $7 million
to KSB Bank to extend term funding for small and medium enterprises, which
are often underserved by commercial banks. As a result, the number of loans
to be provided by the bank to smaller enterprises is expected to triple
by the end of 2016. IFC is the first international finance institution
to support KSB Bank with long-term funding. IFC’s support to the bank
is also expected to encourage other potential investors to support the
bank in funding small and medium enterprises.
“KSB Bank has chosen a new strategy
recently, which entails improving access to finance for small and medium
enterprises," said George Glonti, CEO of KSB Bank. "Our cooperation
with IFC will help us meet the long-term funding needs associated with
Thomas Lubeck, IFC Regional Manager
for the South Caucasus said: “Small and medium enterprises provide an
important share of employment in Georgia. The funding will enable those
entrepreneurs to modernize their businesses, employ more workers, and contribute
to poverty reduction. We are happy to be partnering with Kor Standard Bank.”
Georgia became a member of IFC in 1995.
Since then IFC has invested $583 million in 43 projects across various
sectors and additionally supported regional projects developed in the country.
IFC has also implemented a number of advisory projects focused on the development
of the private sector.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.