The FINANCIAL — Basisbank is offering a new credit product in cooperation with Black Sea Trade and Development Bank (BSTDB) to exporters and importers.
BSTDB allocated 4 million USD for Basis Bank for this new product. Basisbank will be offering credits from 100,000 USD for a minimal interest rate of 13 percent.
“We are oriented at issuing loans for lower interest rates, but the maximum margin will be 24 percent,” said Davit Tsaava, General Director of Basisbank. “We have not determined the maximum margin of the credit, but we expect to be issuing loans from 100,000 USD up to 1 million USD. Our experience of crediting exporters and importers gives us the ability to predict so.”
The credit is renewable and after each loan is repaid the borrower will be eligible to get following credit for a lower interest rate.
Any company which is running an export or import business now has the possibility to apply for credit through us. The main criterion for issuing the loan is experience. Any company which has implemented at least one successful import or export operation has the chance to get credit with us.
“The product has very affordable terms. Another advantage of this new product is that the schedule of payments won’t be a fixed and standard one. The terms of the contract will be flexible and fitted to the specific needs of each borrower. This will depend on the contract and its terms for our borrower and its partner,” Tsaava explained.
“The credit has to be covered in 360 days. But the borrower has the possibility to apply for another loan just 2-3 days after repaying the credit,” he added.
The borrower has the possibility to perform several transactions with one credit. The new product is oriented at companies which run an export business to any country or import to BSTDB member countries.
“BSTDB are the main trade partners of Georgia, therefore this new product is very important. 40 percent of all trade goes to these countries. Export is increasing in the country significantly as well. So local manufacturing and export-import are the sectors we are focusing on,” said the General Director.
BSTDB is the seventh international financial organization Basisbank is cooperating with. The Bank started partnership with international organization EBRD in 2007. After a year EBRD acquired an equity stake of Basisbank. According to EBRD the decision was taken based on the Georgian bank’s stability, experience, huge branch network, moderate and rational management and transparent ownership.
“This new facility is very important for Basisbank, for Georgia and BSTDB as well,” said Mustafa Boran, Vice President of BSTDB. “This is important for Georgia, as trade holds quite a big share of the economy and the new product is supporting trade development. This will increase competition for Georgia and create a better business environment. New credit will increase the liability and efficiency of the businesses.”
The main mandate of BSTDB is to support trade among our member countries. So this is important for fluffing our mandate and main strategy as well,” he added.
“This new cooperation will encourage closer partnership between us and EBRD, as this international organization is a shareholder of Basisbank. We are already working with this organization.”
BSTDB has implemented 21 projects in Georgia. The whole amount of these projects totals 84.5 million USD. BSTDB is oriented at the development of agriculture, transportation, energy, infrastructure, producing.
Apart from Basisbank BSTDB is cooperating with KSB, TBC, VTB and Cartu Bank nowadays. The international financial organization is working on trade projects with Basisbank.
EBRD also appreciates the new cooperation between Basisbank and BSTDB.
“We, as a shareholder of Basisbank, are satisfied with and thankful for this new project,” said Irakli Mekvabishvili, representative of EBRD. “This will support the diversifying of the reservation market.”
Basisbank launched operations in 1993. It was set up during a period when there was a rather complex business environment in the country. However it managed to build itself up as a stably growing financial institution with a firm base.
Basisbank provides a full package of banking services, for both private and corporate customers.
The most important events of the last years have been the recognition by international financial institutions and our further strengthening of cooperation with them.
