IFC, a member of the World Bank Group, will provide financing to Georgias Bank Republic to support the expansion of its small and medium enterprise, mortgage, and educational lending programs.
IFC has worked with Bank Republic since 2005, when it participated in IFCs advisory program to implement corporate governance best practices. IFC helped the bank introduce greater transparency and disclosure principles, increasing its accountability to shareholders and clients. IFC also helped staff the banks supervisory board with independent members, strengthening its decision-making power. Investors noticed the improved corporate governance, and in 2006, Société Générale, a major European bank bought 60 percent of the banks shares, while the European Bank for Reconstruction and Development bought 10 percent.
Gilbert Hie, Chief Executive Officer of Bank Republic, said, “Bank Republic is very pleased to continue the excellent relationship with IFC started with advisory work and pursued with financing in Georgia. This is a part of the global relationship between IFC and Société Générale Group in many countries in Central and Eastern Europe. It is Bank Republic and Société Générale Strategy to keep close relationship with International Financial Institutions, although Société Générale Group is also very dedicated to supporting its subsidiary in Georgia.”
