Azerbaijan, Baku, Dec. 20/ Trend , N. Ismayilova/ EBRD, IFC and Dutch FMO are considering project of becoming one of the shareholders of TCB Bank, second largest bank of Georgia to support TBC in the process of restructuring its operations towards a more sustainable funding model under post-conflict market conditions and amid the global financial crisis, EBRD said.
In overall the EBRD stake will amount to 17%. The project costs $27mln.
The restructuring process will focus on a new business plan for TBC, revision of risk management, increase of the level of deposits to loans ratio and the increased focus on work-out procedures for non-performing loans.
A successful restructuring is expected to have a positive demonstration effect on the market and commercial lenders may resume lending to large banks in Georgia. The transaction will also allow TBC to gradually restart normal lending operations and provide finance to creditworthy individuals and enterprises. The increase in economic activity will have a positive influence on increasing the levels of deposits and encourage TBC to rely more on deposit expansion than foreign borrowings.
TBC Bank, a universal bank, is the second largest Bank operating in Georgia. As of 30 September 2008, TBC had USD 1,390 million in assets, USD 222 million in equity and USD 2.2 million in net profit.
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