The Black Sea Trade and Development Bank (BSTDB) is extending a US$15mn to Georgia’s Basisbank for financing SMEs.

The multilateral lender says Basisbank’s SME clients will be able to use the funding to access funds for “investment programmes and working capital needs”.

BSTDB says the deal is the latest in a partnership dating back to 2012 and including trade finance facilities and SME loans totaling over US$183mn.

A BSTDB spokesperson did not respond when asked about the tenor of the facility.

“This new SME facility illustrates our commitment to fostering economic resilience and growth by empowering small and medium-sized enterprises –  the backbone of the economy,” says Serhat Köksal, BSTDB president.

“Together, BSTDB and Basisbank are laying a strong foundation for long-term economic progress and regional development.”

David Tsaava, general director of Basisbank, says the new facility “will contribute to the growth of the private sector and meet the financial needs of SMEs”.

The two institutions previously signed a combined facility of US$10mn and €5mn for SME lending in June 2020 and also have a separate revolving trade finance facility.

Thessaloniki-headquartered BSTDB is owned by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine.

The bank’s lending has been curtailed since Russia’s invasion of Ukraine, according to its financial reports, but it returned to profitability last year.