Page 45 - GEORptJun20

TBC obtains $67mn in funding from Citi Bank
TBC Bank obtains $50mn financing from OPEC Fund for International Development to back foreign trade clients
Corporation [IFC] and the Uzbek-Oman Investment Company, have expressed their interest to participate subject to their internal approvals. TBC PLC will remain the majority shareholder with 51% interest.”
TBC Bank Group has announced that its subsidiary, TBC Bank, has signed a $67mn trade finance facility with Citi Bank. ​The proceeds of the facility are aimed at supporting import and export transactions for customers of the Georgian bank, thereby increasing the volume and value of trade transactions in Georgia’s key economic sectors.
The agreement is the first between TBC Bank and Citi Bank on attracting funding in the field of trade finance.
“ Currently, our market share in trade financing in Georgia stands at around 50% and with this new facility we will be able to further increase our support to local businesses and contribute to the economic development of our country.”said Vakhtang Butskhrikidze, general director of TBC Bank.
“By delivering this Trade Finance Facility to one of the leading Financial Institutions in Georgia, Citi has underlined its commitment to support growth in key developing markets. We are proud of our longstanding relationship with TBC Bank and the Georgian banking sector as a whole," said Chafic Haddad, EMEA head of financial institutions and correspondent banking, treasury and trade solutions, Citi.
Earlier, TBC Bank Group announced on March 23 that its subsidiary TBC signed a three-year loan agreement for $50mn from the OPEC Fund for International Development. ​The funding is to be used primarily to finance international trade activities of TBC customers.
“With this new facility, TBC Bank will continue to more actively support local businesses to expand their import and export activities and engage in international markets," said Vakhtang Butskhrikidze, CEO of TBC Bank. TBC Bank and the OPEC Fund enjoy a longstanding partnership, the group said.
8.2 ​Central Bank policy rate
Gerogia’s central bank cuts key rate to 8.5%
Georgia’s central bank (NBG) on April 29 cut the refinancing rate by 0.50 percentage points to 8.5%, mentioning local and global demand-side disinflationary pressures as well as lower oil prices.
In Georgia, the annual inflation rate in March was 6.1%. The NBG predicts that due to temporary factors, inflation will remain high for several months, then gradually decline, and in the first half of 2021 approach the 3% target level.
“A sharp decline in external and domestic demand due to pandemic will create a downward pressure on inflation over the course of the year. Given the expected reduction in the demand, there is no need to further maintain such a tightened policy stance”, said the NBG.
Despite the rate cut, monetary policy remains tight, ensuring a return of inflation to the target level in the medium term. The Monetary Policy Committee will exit the tight monetary policy stance gradually and further steps will depend on how quickly inflation expectations recede.
Georgia’s central bank reiterated its forecast for 4% GDP decline this year. Preliminary data shows that in March exports of goods fell by 22% y/y and
45​ GEORGIA Country Report ​June 2020 ​ ​www.intellinews.com