Bank of Georgia agrees $20m trade loan deal

24th Jul 2014 13:39

Bank of Georgia has signed a $20m trade finance loan deal with Turk Eximbank, which is the only official export credit agency of Turkey to extend financing to Georgian companies that import Turkish consumer and capital goods to Georgia. Under the agreement, they will together be able to offer clients solutions to diversify financing sources and will benefit from growing trade flows between Turkey and Georgia. "The $20m trade finance facility will further strengthen our leading market position in trade finance services and will allow our corporate clients to tap business opportunities arising from long standing economic partnership between Georgia and Turkey," said Nikoloz Gamkrelidze, Bank of Georgia's Deputy Chief Executive Officer. On contracts with a less than two-year maturity, financing can be extended to 100% of the contract value, while financing for longer maturities up to seven year will be capped at 85%. "As one of the few Export Credit Agencies around the world that can provide both insurance/guarantee and direct lending, Turk Eximbank will encourage Turkish and Georgian companies to promote trade relations by extending short term and medium term loans with competitive costs, and will be able to provide 100% financing for short term loans with maturity of less than 24 months," added Hayrettin Kaplan, General Manager of Turk Eximbank.Shares had risen 0.28% to 2,548p by 13:29.NR