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EBRD Senior Banker: EBRD will Maintain 4% Stake after Merger of Basisbank and Bank Republic

Amalgamation of Basisbank and Bank Republic will create a new successful player, the EBRD senior banker said.

At the same time, Irakli Mekvabishvili stressed that the mentioned commercial banks have only expressed intention for merger and the regulatory body has not issued a due permission yet.

Mekvabishvili approved that the EBRD will maintain a 4% stake after the merger of the mentioned commercial banks. Currently, the EBRD holds 6.36% in Bank Republic (Societe General).

Mekvabishvili expects the deal to sharpen the market competition. Total assets of the merged banks (Basisbank and Bank Republic) will reach 2.5 billion GEL. Bank of Georgia assets make up 7.8 billion GEL, TBC Bank – 5.9 billion GEL. Total assets of all 19 commercial banks makes up 23.3 billion GEL.

EBRD will maintain the stake for a certain period and then it will withdraw, while Societe General will unveil its own plans later.