EBRD provides loan worth $1M to Georgia’s Crystal Microfinance

Microfinance Focus, Dec. 22, 2009: The European Bank for Reconstruction and Development (EBRD) will provide its first loan denominated in Georgian Lari (GEL) to JSC Crystal Microfinance Organisation, said an announcement on Monday. The loan amount, equivalent to $1 million,  will be used to for on-lending to micro and small enterprises (MSEs).

This transaction will help Crystal meet the increasing demand for longer-term loans in GEL, facilitating MSE’s access to financing at a time when local currency lending in Georgia remains limited, the EBRD said in a statement.

The EBRD loan is accompanied by $100,000 in grant funds, which will be used to strengthen Crystal’s corporate governance and risk management. The loan is part of the EBRD effort to promote local currency borrowing to reduce dependency on foreign currency debt, which is subject to exchange rate risk, said the statement.

Established in 1998, JSC Crystal operates in Western Georgia where it has a strong presence, including in some rural areas where no other lender operates. The loan will assist the MFI to expand its reach, particularly in rural areas and the agricultural sector.

The EBRD has committed over €663 million in approximately 120 projects in the financial, corporate, infrastructure and energy sectors in Georgia.

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