Cartu Bank SME Loan II

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SME loan will assist the client to further develop its SME lending activities and expand access to finance for local SMEs, which continue to be under-served. The operation will support the client’s business diversification strategy across Georgia and help to enhance its competitive position in the market. The transition impact of this equity investment will mainly arise from institutional development of the bank through changes in corporate governance, strategy and business development, operations and risk management systems. In addition, this investment will strengthen Cartu’s capital base thereby enhancing the ability of the bank to further expand its market share in Tbilisi and the regions and hence facilitate the competition in the banking sector as a whole. Via the MCFF and SME facilities, EBRD’s support of Cartu will add to the overall lending capability of the banking sector in Georgia thereby increasing financial intermediation. The proposed loans will increase the supply of funding to SMEs thereby increasing access to bank finance. Cartu Bank, the sixth largest bank by assets in Georgia with total assets of USD 373 million and equity of USD 64 million, as of end of 2008. USD 10 million (EUR 7.7 million equivalent) SME loan facility. EUR 32.1 million. Screened FI. TC will be put in place to assist in the implementation of the Institution Building Plan. George Nozadze, Head of FI Division Cartu Bank 39a Chavchavadze Avenue, 0162 Tbilisi Georgia Tel: +995 95 22 22 83 Email: gnozadze@cartubank.ge For business opportunities or procurement, contact the client company. EBRD project enquiries not related to procurement: Tel: +44 20 7338 7168; Fax: +44 20 7338 7380 Email: projectenquiries@ebrd.com The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Text of the PIP The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed. Last updated 22 July 2010