OREANDA-NEWS. On 31 December 2008 was announced, that IFC, a member of the World Bank Group, and the EBRD are providing a financial package worth up to USD 200 million to Bank of Georgia to help the leading bank in the Caucasus region manage the effects of the global financial crisis.

The two international financial institutions will provide USD 100 million each, including subordinated and subordinated convertible loans of up to USD 50 million to support the bank’s capital base, and a senior loan of USD 50 million to provide longer-term liquidity that will allow the bank to continue lending to retail clients and small and medium enterprises, two key client bases that will drive economic growth in Georgia

After several years of successful integration into the world economy, Georgia has also suffered from the effects of the global credit crunch. Access to international financing has become more difficult for Georgian banks and companies.

“Over the past several years, Georgia’s banking sector has made remarkable progress in deepening financial intermediation and facilitating economic growth,” said Jyrki I. Koskelo, IFC Vice President. “This investment into the Bank of Georgia will help promote a stable and healthy banking sector which is critical for other sectors of the economy to develop. We are happy to support the Bank of Georgia together with the EBRD and are considering other opportunities in the Georgian banking sector jointly.”

Varel Freeman, EBRD First Vice President, said the “swift reaction by international financial institutions demonstrates our preparedness to stand by our partners in times of needs. The EBRD is ready to support structurally sound clients to overcome the current crisis. This is key for the preservation of a sound banking system and the return to sustainable growth in the future.”

Bank of Georgia is the largest Georgian bank, with a market share of 34 percent of total assets, 33 percent of total loans and 30 percent of total deposits. Since November 2006, the bank has been listed on the London Stock Exchange in the form of global depositary receipts.