Page 32 - GEORptAug18

Oman and Qatar, but delays and supposed "technology issues" have hampered any further development of banking integration with those neighbours.
In the case of Russia, it was first announced that the connection would be achieved by January this year. Then it was suggested that it would occur by the time of the June start of the Russia 2018 World Cup. But Iranian football fans who have journeyed to Russia for the tournament have told media outlets that their bank cards fail to work in the country’s ATMs.
According to several Iranian residents of Georgia, all Iranians in the country, bar those working for foreign media, are only permitted to open Georgian lari accounts. Also, the account holders are not permitted to conduct international banking transactions in other foreign currencies as that might breach US Treasury banking regulations and sanctions.
8.1.6 Bank news
TBC signs partnership agreement with Nikoil Bank to develop its Azerbaijan business
IBA-Georgia’s banking licence revoked
Georgia’s TBC Bank Group has announced that its subsidiary, JSC TBC Bank (TBC Bank) has signed a conditional, non-binding strategic partnership agreement with Nikoil Open Join-Stock Company Investment Commercial Bank (Nikoil Bank) to develop its business in Azerbaijan.
The partnership will involve the merger of TBC Bank's Azerbaijani subsidiary, TBC Kredit, with Nikoil Bank. The move remains subject to the approval of the relevant authorities. After the merger, TBC Bank is to own up to 10% of the merged entity and “would play a crucial role in the future development of the company”, according to a July 25 press release from TBC Bank Group.
“TBC Bank intends to use its Georgian banking sector expertise, including its newly-launched fully-digital bank, Space, to support Nikoil Bank’s local growth in its targeted retail and MSME customer markets,” the release added.
It also outlined how TBC Bank would receive a three year call option to acquire additional shares of the merged entity to reach a 50% +1 share interest, subject to the approval of all relevant authorities, which could be exercised at TBC Bank's sole discretion during the three-year period.
Vakhtang Butskhrikidze, CEO of TBC Bank, said of the transaction: “I am very pleased that TBC Bank has reached an agreement to become a partner of Nikoil Bank and I am looking forward to our future cooperation. This would be a very important transaction for TBC Bank, which has succeeded in a competitive Georgian market and can share its vast experience and broad range of products with Nikoil Bank. The products offered by the merged entity would include our Space business that is gaining popularity very quickly and has already attracted up to 120,000 users.”
The banking licence of Azerbaijan International Bank - Georgia (IBA-Georgia) has been revoked, the National Bank of Georgia (NBG) announced o n July 25. IBA is in the process of shutting down its operations in Georgia, and the bank will become a non-banking business organisation for the duration of the ongoing liquidation process. The NBG’s statement instructed creditors of IBA-Georgia to submit their requests to the bank’s liquidator, Roin Tsatsiashvili.
32 GEORGIA Country Report August 2018 www.intellinews.com