Tbilisi, Georgia, April 4, 2018—IFC,
a member of the World Bank Group, has joined forces with Basisbank to boost
access to working capital and trade finance for Georgia’s small and medium
enterprises (SMEs), helping them expand their businesses, create jobs,
and tap into new markets.
Access to finance is among the biggest challenges
for doing business in Georgia, according to the World
Economic Forum’s Global Competitiveness Index 2017-2018.
To help address this, IFC is providing a $10 million loan to Basisbank,
a subsidiary of the Hualing Group, one of China’s largest private enterprise
groups, to enable it to on-lend trade-related working capital to Georgia’s
exporters and importers.
Basisbank has also signed on as an issuing
bank in IFC’s Global Trade Finance Program (GTFP). As part of the deal,
IFC will provide the bank with a trade finance guarantee line of $2 million,
helping it facilitate its clients’ trade transactions and boost cross-border
“The partnership will help us enhance our
trade finance capacity, offer best solutions to our SME clients, and help
grow their businesses globally,” said David Tsaava, General Director,
are also delighted to join IFC’s Global Trade Finance Program, which will
further strengthen our position in the trade finance segment and help expand
our outreach to exporting and importing companies.”
By supporting a smaller-sized bank, IFC is
also expected to foster greater competition among Georgian banks.
“Access to trade finance is vital for businesses
that depend on cross-border trade to remain viable and seek new opportunities
for growth,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus.
“Our cooperation with Basisbank is part of our wider efforts to support
private sector growth in Georgia.”
Georgia became an IFC member in 1995. Since
then, IFC has committed around $1.83 billion in long-term financing, including
nearly $940 million in mobilization, in 59 projects in financial services,
agribusiness, manufacturing, and infrastructure. IFC has also supported
more than $385 million in trade through its trade finance program,
and implemented advisory projects to help develop the private sector.
The GTFP supports trade in emerging markets
by providing partial or full guarantees for individual trade transactions.
It has an international network of more than 500 bank partners in 150 countries,
helping SMEs access the global trading system, and has supported more than
$64 billion in trade in the last 13 years.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In FY17, we delivered a record $19.3 billion in long-term financing for
developing countries, leveraging the power of the private sector to help
end poverty and boost shared prosperity. For more information, visit www.ifc.org.
Basisbank is a fast growing, internationally
recognized mid-sized banking institution operating in Georgia with a strong
market reputation and solid international support. Headquartered in Tbilisi,
Basisbank’s operations span Georgia’s most economically active regions,
through a network of 22 branches and its 416-strong sales force. In 2012,
the Hualing Group, the largest conglomerate in China, acquired 90 percent
of Basisbank’s shares, subsequently increasing this to 92.78 percent in
2014. For more information, visit www.basisbank.ge