Georgia Microfinance Bank

completed

Summary Of Project Information (SPI)Project NameGeorgia: Georgia Microenterprise Bank     RegionEuropeSectorProject No008465Projected Board DateJune 15, 1998Company NameGeorgia Microenterprise BankTechnical Partner and/or Major Shareholders Shareholders: IFC, Kreditanstalt fur Wiederaufbau (KFW), the Netherlands Development Finance Company (FMO), four Georgian banks (TBC, Tbilcredit, Tbilcom and Intellectbank) and a technical partner (which is still to be selected, but is expected to be a company with considerable experience in managing microfinance institutions).Project Cost Including proposed IFC investment US$16 million; proposed IFC equity investment of US$0.8 million and a credit line of up to US$5 million.Location of project and Description of site Tbilisi, GeorgiaDescription of Company and Purpose of Project The project involves introducing micro-lending techniques to Georgia, through the creation of a specialized financial institution, the Georgia Microenterprise Bank (GMB). GMB will lend to micro and small enterprises, a sector which is not currently being served by Georgia''s nascent banking sector. GMB is expected to provide loans for working capital and for equipment acquisition. The loans will have relatively short maturities and will be for amounts of up to US$35,000, with an expected average of US$10-15,000.Environmental Category and Issues This is an environmental review category FI project. GMB will be required to apply IFC''s microlending screen to all loan applications and require that each sub-project comply with applicable host country environmental, health and safety requirements.Date SPI sent to PIC April 27, 1998     “This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384