bank into the largest and one of the best performing commercial banking institutions in Georgia. In 1999, IFC helped establish the ProCredit Bank
- the first bank dedicated to lending to micro and small enterprises in the country, and now the fastest growing banking institution in Georgia. IFC has also supported other Local Companies, for example, GG & MW , a mineral water production company, where IFC's loans supported the company's acquisition of key strategic assets and strengthened control over its key brand, Borjomi mineral water. IFC's equity investment helped the company rehabilitate two mineral water bottling facilities, diversify its product mix and develop the distribution network. IFC sold its stake in the company in 2002. Development of Mortgage Lending. In the financial sector, IFC has focused on supporting the development of the housing finance market. The introduction of mortgage financing has allowed individuals for the first time to leverage their residences to increase their standard of living. In 2000, IFC extended a $ 3 million credit line to the Bank of Georgia , and together with re-flows, this credit line financed over 500 projects totalling $ 4.5 million. In June 2003, IFC provided a second $ 5 million credit line to the Bank of Georgia for housing finance and for on-lending to small and medium enterprises. In August 2001, IFC provided a second $ 3 million loan to TBC Bank to support the development of its mortgage lending.
Facilitation of Foreign Investments : IFC invested in equity and provided loans to Ksani Glass Factory, a producer of high-quality glass bottles and packaging. IFC's The $ 2.5 million equity investment and $ 6.3 million loan supported Ksani's expansion and modernization. At project completion, the facility will be producing 40,000 tons of high quality glass bottles annually with a high level of product flexibility. In the power sector IFC provided a $ 30 million loan to AES Corporation to support the newly privatized Tbilisi area power distribution company. The loan was pre-paid in August 2003, when the AES Corporation sold Tbilisi electricity distribution system to UES.
1.6 Legislative Basis for the Operation of the Private Companies
В
General . The operation of the private companies in Georgia is mainly regulated by the following two laws: a) Law on Entrepreneurs (LoE) (Corporate Law), which sets the corporate governance principles for the private companies (ie Limited Liability Companies and Joint Stock Companies); and b) Securities Market Law (SML), which regulates the activities of the private companies permitted to issue and trade the shares on the securities market (i.e. Joint Stock Companies). Both laws are reviewed below.
В
1.5.1 Law of Georgia on Ent...
