TBC Bank & Sida Sign Loan Guarantee Agreement

For the first time in Georgia, the Swedish International Development and Cooperation Agency (Sida) will be the financial guarantor of business activities conducted by entrepreneurs in Georgia.

TBC Bank and Sida, represented in this instance by the Embassy of Sweden, signed a loan guarantee agreement with the purpose of supporting startups and micro, small and medium (SME) businesses in Georgia, particularly those which include female founders and entrepreneurs.

According to the agreement, if issues should arise on a loan issued by TBC Bank, Sida will act as a borrower's guarantor. The collaboration deals with loans that TBC Bank will offer in the field of agriculture, trade, environment, manufacturing and service providers to support start-ups and SMEs.

The risk will be shared equally (50% - 50%) based on the Borrower and Loan category. With loans taken by women entrepreneurs, startup entrepreneurs or those that intend to create ecologically clean products, 60% of risk will be shared by Sida.

Sida's guarantee will cover a total portfolio of $40 mln.

TBC Bank has been working with the Swedish International Development Cooperation Agency for the past year and the agreement will be the first project for Sida with the cooperation of a commercial bank in Georgia.

By Anna Zhvania