The Asian Development Bank (ADB) is providing a 60 million Georgian lari ($22.3 million) loan and a $500,000 technical assistance grant to Credo Bank (Credo) to launch new products including home improvement and mortgage loans to lower income households in rural areas and on the outskirts of Georgia’s capital, Tbilisi. The loan is provided in Georgian lari supporting Georgia’s strategy to increase the use of local currency and reduce foreign currency-induced credit risks of the beneficiaries and banks.
“This is ADB’s second project with Credo and it allows the bank to expand its services to small business and rural household customers, most of whom are women,” said ADB Lead Investment Specialist for Private Sector Operations Mr. Rainer Hartel. “We are proud to work with Credo Bank to reach underserved regions, boosting economic activity and affordable housing to enhance Georgia’s sustainable and inclusive growth.”
Credo’s long-term loans will particularly benefit women-headed households, who represent the majority of the bank’s clients, not only by improving living conditions but also by broadening rural income generation through the construction of homestays. The technical assistance aims to improve Credo’s outreach to 1,300 remote village communities through fintech solutions covering payment, savings, and loan services, as well as financial literacy and entrepreneurship training through Credo’s academy services.
Around 43% of Georgians live in rural areas and 27% in regional towns, with a vast number working in small enterprises or in subsistence farming. The assistance will support the wellbeing of the rural population and help address poverty in the regions.
Since 2007, ADB has provided nonsovereign loans totaling $255 million to banks in Georgia.
Credo is a leading financial service provider for households as well as micro and small enterprises (MSEs) in Georgia, serving about 230,000 MSE borrowers, 50% of whom are female, with an average loan size of 2,300 Georgian lari.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.
See all the news
Silknet signed Memorandum of Understanding with Global Communications Company One Web
Reuters: Dutch city tells floating Georgian monastery to cast off
The NBG hiked further as the GEL stays undervalued
World Bank expects slowdown of Georgia's economic growth in Q4 of 2019
Georgia-Estonia Business Forum is Held Today
Nestle Sees $250 Million Boost for Starbucks Products
GDP will be Calculated by the Updated Methodology from Today – What the Reform Will Cause
BM.GE: Giorgi Gakharia has selected a new business ombudsman
Tourist Number Hits a Record within 10Months and Exceeds 8 MLN Despite Putin’s Flight Ban
Galt & Taggart does not rule out slowdown of economic growth to 4% in 2020
Mamuka Khazaradze: finally, I also found out what we were accused of
Salmonella detected in frozen chicken meat imported from Ukraine
Talakvadze about Tskaltubo Development Project: special rules won’t apply to Ivanishvili
m2: we do not have any plans for Center Point at this stage
Georgia Capital to open 6 new hotels in Georgia under the new brand Amber Group
The CEO of m2 Group is changed - Shota Berekashvili replaces Irakli Burdiladze
The 30 Top Emerging Travel Destinations for 2020
"We hold rather comfortable shares on the market " – Does TBC Bank want to Buy Cartu?
Interview with Ahmed Bin Sulayem - Executive Chairman and CEO of DMCC
Agreement signed between Silknet and Euronews to launch “Euronews Georgia”