EBRD allocates $31.5m loan to Georgia’s BasisBank

A $31.5 million USD loan to Georgia’s BasisBank is one way the European Bank for Reconstruction and Development (EBRD) is supporting small and medium-sized enterprises (SMEs), energy efficiency measures and access to trade finance in Georgia.

The package included $20 million financing for corporations and $10 million for SMEs, including a line of credit for energy efficiency investments under the Caucasus Energy Efficiency Programme. It will allow BasisBank to enter and develop a new business segment by promoting and financing energy efficiency investments among local businesses and residential clients.

"The package [of loans] covers the needs of local businesses well and illustrates what we can offer to contribute to their successful development through a strong and leading local-market participant like BasisBank,” said Nick Tesseyman, EBRD Managing Director of Financial Institutions.

BasisBank will provide sub-loans to local companies to finance acquisitions, expansion or modernisation, and working capital needs.

"We are very happy about the successful cooperation between BasisBank and the EBRD. This is a new stage in our ongoing relationship. We are sure that the stated package of loans will support corporations and SMEs. Our cooperation will be a significant contribution to the development of the Georgian economy,” said David Tsaava, CEO of BasisBank.

Support for private businesses was one of the EBRD’s priorities throughout its activities, and in Georgia the private sector share of the Bank’s investments stands at 91 percent.