Large potential is present in the agricultural sector in Georgia

Georgia is one of the important countries of the Caucasus with its historical and cultural texture, natural beauties, and great potential, especially in the agricultural sector.

Georgia, which draws attention with its historical and cultural texture, natural beauties, and great potential, is a promising country of the Caucasus… Georgia, where Turks can enter without visas, has a close relationship with Turkey.

Turkish companies, which operate in almost every field from banking to tourism, from agriculture to construction sector, from energy to agriculture sector, make a significant contribution to the Georgian economy. One of these organisations is Ziraat Bank.

Ziraat Bank entered the Georgian market by opening a branch in 1998. It has been operating in Turkey as a Georgian subsidiary since 2017. Ömer Aydın, who took the seat of General Directorate of JSC Ziraat Bank in July last year, answered Turcomoney’s questions.

- How would you describe the developments in the banking sector in Georgia?

AYDIN - The Georgian banking sector continues to grow in line with the country’s economy. The country, which is in the stage of harmonisation with the European Union, has strengthened the equity structures of banks with the effect of legal regulations in the banking sector. The regulations enacted by the Central Bank are being

implemented in line with changes in monetary and fiscal policies.

AT ZİRAAT BANK, WE WOULD LIKE TO CONTRIBUTE TO THE DEVELOPMENT OF TRADE RELATIONS BETWEEN TURKEY AND GEORGIA

- When was Ziraat Bank Georgia established? What is the place of Ziraat Bank in the banking system?

AYDIN - Ziraat Bank started to operate as a branch in Tbilisi in 1998 for the first time in Georgia. Batumi Branch was established in 2013 and Marneoli Branch in 2016. A new phase has started with the start of operations of our subsidiary in JSC Ziraat Bank Georgia since 2017 following the changes in the banking legislation in Georgia. Our branches in Tseretelli in 2018, Kutaisi in 2019, and Gldani and Varketili in 2020 were opened. The basic principle of our bank ensures the continuation of sustainable profitability with its healthy and efficient balance sheet structure. We are working to increase the market share of our Bank in foreign trade volume by mediating foreign trade between Georgia, Turkey and other Ziraat Finance Group countries. We would like to contribute to the development of economic and trade relations between our countries in order to support foreign trade through financing. We provide support for Turkish investments and local investments in Georgia. We continue our activities with the strategies of strengthening both the branch network and alternative distribution channels.

WE DO NOT DISCRIMINATE BETWEEN SECTORS

- Does your bank mainly serve SMEs and the agricultural sector? Is it focusing on consumer loans? Would you provide information about your target audience?

AYDIN - We continue to provide services to our customers in Georgia without discriminating between sectors. With the pandemic in 2020, there was a slowdown in the rate of credit growth with the slowdown of economic activity all over the world. The financial needs of our customers in all sectors were evaluated and no sectoral prioritisation was made in this process.

WE OFFER ALL MAIN BANKING PRODUCTS TO OUR CUSTOMERS

- With which products and services does your bank stand out in Georgia?

AYDIN - Our bank offers all main banking products to our customers in Georgia. We provide services to our customers through branch and nonbranch channels such as ATM, Internet and mobile banking, especially Cash and Non-Cash Loans, as well as Deposits and Investment products. In addition, local money and foreign exchange transfer transactions of corporate and individual customers are carried out with the Finance Group Transfer System (FGTS), which we have just launched within the Ziraat Finance Group, and our Bank stands out in the sector with this product. Money transfers between our banks and branches in Georgia, Turkey and other countries included in the system (Azerbaijan,

Bosnia and Herzegovina, Kosovo, Russia, Kazakhstan, and Bulgaria) are carried out faster and more cost-effectively with this

Ziraat Bank, which entered the Georgian market by opening a branch in 1998, has been operating as a subsidiary of Ziraat Bank since 2013.

system. We plan to expand the money transfer network to include banks and branches in other countries where Ziraat Finance Group operates in the future.

- What incentives and benefits does the Georgian Government offer for foreign investors and entrepreneurs?

AYDIN - Georgia Government has organised incentive and grant programmes depending on the amount of investment in various business lines so that foreign investors can invest in the country. There are state support and grant programmes on issues such as hotel and real estate, service, clothing, shoes, car and aircraft parts production among these within the scope of the Direct Foreign Investment Support Mechanism, “Production in Georgia Project”.

WE PLAN TO OPEN A BRANCH IN THE KAKHETI AREA.

- Georgia draws attention with sectors such as tourism and agriculture. We see that there has been mobility in the construction sector in recent years. How would you describe the development of these sectors and the investments made? How does Ziraat Bank work with these sectors?

AYDIN - Service and construction sectors have come to the forefront in Georgia in recent years. Tourism is one of the sectors most affected by the COVID-19 outbreak in 2020. It is predicted that Georgia will also grow in the agricultural sector in the near future thanks to its high potential in the agricultural field. The state has studies since most of the fertile lands in the country cannot be fully utilised. Our bank serves our customers with innovative products to meet all the financial needs of these sectors, including business and investment loans. We plan to open a branch in the Kakheti region, where agriculture and livestock activities play an important role in economic terms, in order to provide our customers with higher standards in the agricultural field from the next year thanks to the arrangements made. We aim to provide the same quality of service and produce more added value in Georgia by benefiting from the experience and wide product network of our main bank, Ziraat Bank Turkey in this field.

WE OFFER SUPPORTIVE PLANS FOR OUR CUSTOMERS TO BE ABLE TO GET THROUGH THE PANDEMIC PERIOD WITHOUT DAMAGE

- Investments are being made in the business world and serious reductions and changes are being experienced in the amount of expenditure and habits of consumers due to the pandemic. How did this reflect on the banking sector?

And how has the pandemic affected the performance of Ziraat Bank? How are you trying to adapt to these changing circumstances?

AYDIN - We benefit from the support and experience of our main Bank to meet the demands of our customers and to be the leading bank in the sector. We are gaining new customers by increasing the marketing activity in the favourite sectors where economic mobility intensifies during the pandemic. We offer supportive plans to our customers in sectors where demand is decreasing due to the pandemic and economic problems are experienced in order to get through the period without damage. - What kind of working model do you apply during the pandemic period? Have you ever had to make decisions such as personnel reduction or branch closure?

AYDIN - We continue our banking activities with our General Directorate units in addition to 7 branches in total in Tbilisi, Batumi, Marneuli, Kutaisi, Tseretelli, Varketili and Gldani in Georgia. Our bank provided uninterrupted service during the pandemic period. Distance working method was also adopted, including rotating work, to avoid disruption of services according to the number of cases and the status of legal restrictions. We have taken all kinds of measures to prevent our services from being disrupted during the pandemic period, and we closely monitor domestic and international developments.

WE PLAN TO OPEN NEW SERVICE POINTS WHERE NEEDED

- What are your targets for 2022? Do you have plans for new breakthroughs in digital banking, increasing the number of branches and employees, etc.?

AYDIN - Digital technologies will continue to affect the banking sector. We closely monitor new developments to provide quality and fast service. We also plan to open new service points where needed to keep customer satisfaction at a high level.

OUR BANK PROUDLY REPRESENTS TURKEY IN GEORGIA

- What about your medium and long term goals in the Georgian market?

AYDIN - Our bank, which provides fast and quality service and has a widespread branch network in Turkey and around the world with its experienced human resources, will continue to implement its growth strategy in sustainable profitability and efficiency. Our bank continues to strengthen the socio-economic bond between the two countries in addition to banking activities in Georgia. We continue to work to meet the demands and needs of investors and visitors to Georgia in the field of banking along with their existing customers. Our bank proudly represents Turkey in Georgia as well as all over the world with its sectoral knowledge, experience, and expert human resources.

Ömer Aydın, General Manager of JSC Ziraat Bank, evaluated the banking sector in Georgia and answered Turcomoney’s questions.