Georgia’s Kor Standard Bank (KSB) has received a US$7mn loan from the International Finance Corporation (IFC).

The finance will be used to fund SMEs across all sectors in Georgia and it’s hoped that it will boost exports from the country. The terms of the transaction are confidential.

The IFC has a history of partnering with Georgian banks in an effort to stimulate trade. The bank’s regional manager for the South Caucasus Thomas Lubeck explains to GTR: “Trade has been recognised as a key driver of global integration and gross domestic product growth in developing countries. To support this critical aspect of the global economy, the IFC launched GTFP in 2005 to extend unfunded support through guarantees for individual trades. We believe this is one way to boost trade worldwide.

“In Georgia, we have partnered with three banks within the framework of the GTFP: Bank of Georgia, Bank Republic and TBC Bank. Through this co-operation we help local banks finance foreign trade transactions of local companies, thereby boosting trade. The IFC’s trade lines have proven important for Georgia since the onset of the global financial crisis when commercial banks, particularly in Europe, scaled back their trade facilities to Georgian banks. We believe these banks are strong and encourage commercial banks to engage with them as trade partners.”