Page 40 - GEORptDec20

IFC plans to invest $10mn in TBC Uzbekistan
invested $5mn in digitalisation and ecosystem development. In 2021-23, it plans to invest another $3-10mn to develop the ecosystem further and its offering of banking, non-banking and non-financial services via the mobile app. The target is to double the number of MBank and IBank active users to 1.4mn, including converting 1.3mn members of the bank’s loyalty programme. The main targets are young people and Georgian emigrants.
The International Finance Corporation (IFC), a World Bank Group member, is looking at making an investment of $10mn in TBC Uzbekistan (TBC UZ), the fledgling subsidiary of Georgia’s TBC Bank Group, ​it has announced​.​ A final decision is expected by the end of this month.
In exchange for the investment, the IFC said it expected to receive a minority stake of 20%.
“It will be a next-generation banking ecosystem with a strong emphasis on digital offering, using high-quality contemporary banking practices transposed from the TBC Bank Group’s Georgian operations,” it added.
Officials that granted TBC UZ a licence expect the lender to contribute to increasing competitiveness in the country’s banking sector through innovation, competition, and demonstration channels.
TBC UZ will provide access to finance for an underserved segment in the economy, IFC said.
“Should TBC UZ prove successful, this will invite other private investors into the Uzbek banking sector. In addition, a strong operational performance focused on modern branches and digital channels is expected to push traditional banks towards innovation and increased efficiency,” it also noted.
8.2 ​Central Bank policy rate
Gerogia’s central bank keeps refinancing rate hawkish at 8%
The National Bank of Georgia (NBG) on October 28 kept its key refinancing rate at 8%. ​The central bank maintained the rate at the same level for a second straight time after reducing it to 8% on August 5. The monetary board convenes again on December 9.
NBG’s tight monetary policy, justified by adverse expectations on the foreign exchange market, pushes up the government’s financing costs. On October 27, GEL80mn ($24mn) of 5-year government bonds were issued with a weighted average yield of 8.29%.
The price dynamics in recent months were in line with forecasts, central bank said, with inflation continuing to decline, reaching 3.8% in September.
The central bank also stated that inflation, driven downward by weak aggregate demand, will adhere to a declining trend and remain close to the target level in 2021.
The regulator also said that it expected domestic demand to be the key driver of economic growth in 2021, taking into account significantly reduced external demand, with revenues from international tourists declining by 95% in September annually.
40​ GEORGIA Country Report ​December 2020 ​ ​www.intellinews.com