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Turkey : BANK OF GEORGIA inks trade loan agreement with TURK EXIMBANK

July 25, 2014

Bank of Georgia has declared the signing of trade finance loan agreement with Turk Eximbank.

Turk Eximbank is the only official export credit agency of Turkey to bolster funding to Georgian companies that import Turkish consumer and capital goods to Georgia. The loan agreement is worth about $20 million.

Both the parties will jointly be able to provide clients solutions to diversify financing sources and will benefit from growing trade flows between Turkey and Georgia.

Nikoloz Gamkrelidze, Bank of Georgia s Deputy Chief Executive Officer, commented 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.

Under the agreement, financing can be extended to 100% of the contract value, on contracts with a less than two-year maturity. At the same time, financing for longer maturities up to seven year will be capped at 85%.

Hayrettin Kaplan, General Manager of Turk Eximbank, stated 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.

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Source: TendersInfo (India)

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