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and microfinance organisations.
8.1.5 ​Bank news
EIB extends €60mn credit line to Bank of Georgia
Georgia's TBC Bank goes live with Capital Banking Solutions’ API-based open platform in Uzbekistan
Georgia’s TBC Bank borrows $100mn from EBRD
The European Investment Bank Group and the Bank of Georgia (BoG) have signed an agreement to supply a €60mn credit line for loans to small and medium-sized enterprises (SMEs).
The sum will improve access to finance for over 100 businesses, particularly those which are affected by the coronavirus (COVID-19) crisis.
50% of every loan disbursed by the BoG that targets SMEs and mid-caps that require investment and working capital to finance research, development and innovation activities are covered by the InnovFin Guarantee, the EIB announced.
The InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing between €25 000 and €7.5mn, in order to improve access to loan finance for innovative SMEs and small mid-caps (up to 499 employees). This facility is being rolled out through financial intermediaries, which are guaranteed or counter-guaranteed against a portion of their potential losses by the European Investment Fund (EIF).
Moreover, as a response to the coronavirus crisis, the guarantee also covers 80% of loans provided by the BoG to SMEs and mid-caps impacted by the coronavirus crisis for their working capital needs.
This operation is covered by the EU4Business Initiative.
“Addressing the economic well-being of smaller innovative businesses is a key element of the EIB Group's response to the COVID-19 crisis,” said EIB vice-president Lilyana Pavlova.
Georgian TBC Bank’s Uzbek digital branch has gone live with integrated banking software provider Capital Banking Solutions’ (CBS) API-based open platform, TBC said in a statement. The digital bank in Uzbekistan will be supported by Space, the lender's fully-digital bank in Georgia, the statement noted.
TBC Bank said it has long been looking for a fintech partner for an open platform that provides seamless integration standards and efficient management of loans and deposits products. Capital Banking Solutions’ open banking suite will connect to TBC Enterprise Service Bus through API integration services while addressing the bank’s business needs.
“Space is an innovative digital banking laboratory, where experiments are made in terms of products, services and communication,” Space general manager Lasha Gurgenidze said. “Uzbekistan is the first case of geographic expansion for Space team.”
The European Bank for Reconstruction and Development (EBRD) has approved a $100mn senior unsecured loan for Georgia’s TBC Bank as part of its support in the country’s fight against the coronavirus outbreak, the EBRD said on June 23.
“The proceeds will be used for on-lending to eligible sub-borrowers, preferably small and medium-sized enterprises,” EBRD said in a press release.
The loan will be provided this year in two equal tranches.
The EBRD added that the loan would help to “ensure the resilience of the financial sector and to preserve competition in the sector and continued lending to the economy adversely impacted by the COVID-19 outbreak.”
TBC in mid-March allowed all its debtors to suspend repayment of bank loans for a period of three months and, like all other Georgian banks, built up
41​ GEORGIA Country Report ​August 2020 ​ ​www.intellinews.com