LONDON, UK: TBC Bank Group’s subsidiary JSC TBC Bank has signed a loan agreement in the amount of GEL (lari) 90 million with the European Investment Bank (EIB) to finance micro, small and medium size businesses in Georgia and support the development of private enterprise.  The funds are available to draw either in EUR, USD or GEL.

Vakhtang Butskhrikidze, CEO, TBC Bank, commented: “I am very pleased that over time we have built such a successful partnership with the European Investment Bank. This is TBC’s first transaction in Georgian Lari with EIB, and is a testament to the truly close working relationship we have formed since the launch of our partnership in 2012.

Local currency funding is of great importance for the Georgian financial sector as it allows to reduce dependence upon borrowing in foreign currencies. Local currency funding will protect business owners and households from direct exposure to exchange rate risk while it helps to de-dollarise TBC Bank’s portfolio.”

The European Investment Bank (EIB) is the European Union’s bank. It is the long-term lending institution of the EU and is the only bank owned by and representing the interests of the European Union Member States. It makes long-term finance available for sound investments in order to contribute towards EU policy goals. The EIB works closely with other EU institutions to implement EU policy.

As the largest multilateral borrower and lender by volume, the EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of EIB activity is focused on Europe but it also supports the EU’s external and development policies.