CSR at Crystal Microfinance Organisation

CSR at Crystal Microfinance Organisation

Watch the video

CSR at Crystal Microfinance Organisation

Listen to Mr. Malkhaz Dzadzua, CEO of Crystal Microfinance Organisation. 
This video is part of the FINANCIAL annual forum on CSR. 
Author: Tako Khelaia

JSC MFO Crystal is a dynamically growing local microfinance organization, supporting development of micro and small business sectors in Georgia.

Crystal offers a wide range of high quality financial services to the customers including: micro, SME and agro loans for start-ups and operating businesses; housing and consumption loans; currency exchange services; remittances; utility payment service etc. Headquartered in Kutaisi (West Georgia), Crystal is mainly focused on micro entrepreneurs and farmers living and working in regions and remote areas. For 2015 almost 24% of the company’s loan portfolio is concentrated in non-urban areas.Holding market share of around 6%, Crystal is the 4th largest MFI in Georgia among 62 registered institutions.

Corporate Values

The mission of JSC MFO Crystal is to support micro and small entrepreneurs and farmers in realizing their business potential, reaching financial stability and elevating their living standards. Crystal is seeking for long- term partnerships by offering transparent, innovative and fast financial solutions, tailored to the needs of customers, providing them with knowledge critical to their economic success.

Organizational History

In 1995, internally displaced persons from Abkhazia teamed up to set up a local non-profit organization – a charity humanitarian center “Abkhazeti”, which launched a pilot micro lending program in August 1998 with starting debt capital of  just $10, 000.

Following recommendations by donors and international rating agencies, in 2004 center “Abkhazeti” made spin-off of micro lending programs from other charity and social projects to set up a separate, independent entity.  That marks inception of Crystal Fund in April 2004. In line with requirements of the Georgian “Law on Microfinance Organizations”, Crystal Fund was transformed into and registered with the National Bank of Georgia as JSC Microfinance Organization “Crystal” in 2007. 

In October 2011, a US investment bank “Developing World Markets” (DWM) became the first institutional investor and shareholder of “Crystal”. 

Key Achievements

The activity launched by “Crystal” in 1998 with just USD 10,000 debt equity has evolved to serve more than 44,000 customers and successfully manage loan portfolio of around GEL 95 million in 2015; The Company operates through a network of 31 regional branches and is represented in 8 regions of Georgia.

Crystal is the first Georgian microfinance organization, which managed to raise bank funding (2003).

Crystal is also the first microfinance institution in Georgia to be awarded an international credit (2003) and social (2010) ratings.

Robust institutional standards, commitment to social responsibility and transparency principles served Crystal to earn international recognition: platinum award (the highest prize) from MIX for social reporting (2012); CGAP award for financial transparency (2006); in 2011, Crystal was announced a winner in the call of Smart Campaign for “plain language loan contract”.

Partners and Investors:

Financial partners:

Financial partners of Crystal include well-known and reputable international institutions, such as: EBRD, KfW, Commerzbank, IFAD, responsAbility SICAV, Developing World Markets, MicroVest, Oikocredit, Incofin, Rural Impulse Fund, Credit Suisse Microfinance Fund, Symbiotics, Micro Credit Enterprises and other financial companies.

From October 2011 “Developing World Markets” (DWM), a US-based investment bank has become the first institutional investor and shareholder of the company.

Solid reputation:

Crystal is regarded in the international microfinance market as a responsible credit organization, boasting of 14-years’ experience of successful cooperation with financial institutions, development agencies and investment companies.  

Distinguished credit record:

Not a single case of arrears or delayed payment can be found in the whole credit record of Crystal.