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First international bank established in Georgia
Companies operating in Georgia will be able to access high-quality commercial banking services with the founding of the country's first international bank, the International Commercial Black Sea Bank-Georgia (ICBSB-Georgia). The bank's shareholders - the Commercial Bank of Greece (51 per cent), United Georgian Bank (29 per cent) and the European Bank for Reconstruction and Development (EBRD) (20 per cent) - signed the founding documents and held the first shareholders' meeting in Tbilisi today.
In the presence of Georgia's President, Edward Sevardnadze, the EBRD's Deputy Vice President, David Hexter, remarked: "Conditions in Georgia are now ripe for the dynamic development of the banking sector. We expect the creation of ICBSB-Georgia to stimulate competition in the local market and help advance Georgia's transition and economic growth."
ICBSB-Georgia's objective is to establish itself as the benchmark of good banking practice in Georgia. "Our belief in the capabilities of the Georgian people and Georgia's promising future inspired us to establish its first international bank," said Constantine Kanonis, Chairman of the bank's Supervisory Board. "We are all very proud of this moment that symbolises an important step in Georgia's development. The Commercial Bank of Greece has been actively working to revitalise trade and investment in the Black Sea countries and this is an important development towards such a goal."
Up to now Georgian companies have had only limited access to very costly short-term trade credit. The Chairman of the United Georgian Bank, Vano Chkhartishvili, commented: "Establishing the ICBSB-Georgia is a crucial moment in the development of the Georgian financial sector. By strengthening services and rebuilding customer confidence we can attract more domestic savings into the banking system. This step marks a significant advance in the long and fruitful relationship between the United Georgian Bank and its international partners."
With an initial capital of US$ 3 million, ICBSB-Georgia will offer local companies a range of banking products, such as trade finance, foreign exchange, money transfers and other services related to international payments. It will not provide retail banking services.
ICBSB-Georgia is the first bank to be created under a multi-project facility agreement signed the EBRD and the Commercial Bank of Greece in December 1995. Under the facility, the Greek bank plans to establish more banks in the Black Sea countries over the next two years.
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