ADB Provides Finances for Georgia's Credo Bank

The Asian Development Bank (ADB) is providing a 60 million Georgian GEL ($22.3 million) loan and a $500,000 technical assistance grant to Credo Bank (Credo) to launch new products including home improvement and mortgage loans to lower-income households in rural areas and on the outskirts of Georgia’s capital, Tbilisi.

The information was released on ADB’s official website and reads that the loan is provided in Georgian GEL, supporting Georgia’s strategy to increase use of the local currency and reduce foreign currency-induced credit risks for the beneficiaries and banks.

ADB reports that the project allows the bank to expand its services to small business and rural household customers, most of whom are women.

“We are proud to work with Credo Bank to reach underserved regions, boosting economic activity and affordable housing to enhance Georgia’s sustainable and inclusive growth,” the statement reads.

Credo is a leading financial service provider for households as well as micro and small enterprises (MSEs) in Georgia, serving about 230,000 MSE borrowers, 50% of whom are female, with an average loan size of 2,300 Georgian Lari.

Since 2007, ADB has provided nonsovereign loans totaling $255 million to banks in Georgia.

By Thea Morrison