FINCA Holding to Turn its MFOs into Banks in Georgia and Azerbaijan
The COMMERCIAL TIMES
Another microfinance organization in Georgia plans to turn into a bank. FINCA Holding is intended to develop its microfinance institutions into banks in Georgia and Azerbaijan. Earlier, it was Constanta that now successfully operates in the local market as a bank.
The process will take 6-7 months in Georgia and around a year in Azerbaijan.
Established in 1998, FINCA Georgia operates 32 branches in the country.
According to the 2011 data, the company’s market share of actives made 17.5% while in respect to credit portfolio its shares made 18.5%.
Currently, 18 banks operate on the Georgian market. In addition, the local market will soon have new players: German Commerzbank, Azeri Pasha Bank and Turkish Isbank.
Finca Georgia is an affiliate of FINCA International Inc., a network of microfinance institutions based in Washington, D.C., with affiliates operating in 21 countries around the world – was established in Georgia in 1998 with support of USAID and the US Department of Agriculture.
Since the end of 2011, JSC MFO FINCA Georgia is a subsidiary company of FINCA Microfinance Cooperatief U.A., with such shareholders on board, as FINCA International, USA, International Financial Corporation (IFC, World Bank Group)- USA, KfW Bankengruppe, the German development bank, FMO, the Netherlands development bank, responsAbility Global Microfinance Fund, an investment fund advised by the Zurich-based asset manager responsAbility Social Investments AG, and Triple Jump, a Netherlands-based microfinance investment manager.
