As stated by the FMO, to support Crystal's growth, FMO / MASSIF have extended a loan to Crystal. This project is fully in line with FMO's strategy of increasing our impact in Georgia through growing our client base with selected second tier banks and larger MFIs. By supporting Crystal, FMO contributes to improving access to finance for Georgian micro businesses, especially in rural areas. Crystal’s inclusive mission and activities fit well within the new Massif’s strategy and focus themes. A part of the funding will be used for green lines.
As stated by the FMO, due to its microfinance activities, Crystal is exposed to limited Environmental and Social risks as a result of small loan sizes. Crystal has an Exclusion List and a Social and an Environmental Policy in place. A dedicated Social Responsibility Officer is responsible for its implementation who reports directly to the Chief Operations Officer, who is also in charge of Credit. The Social Policy and its implementation is rather successful to improve the organizations performance in reaching its social objectives, both with respect to its customers, its employees and its communities. The SR Officer undertakes regular environmental impact assessment for key sectors financed by Crystal.
According to FMO website, JSC Microfinance Organization Crystal (Crystal) is Georgia’s fourth largest microfinance lender with 60 thousand customers, 36 branches and a loan portfolio of USD 60m. Headquartered in Kutaisi, a regional city in the northwest of Georgia, it has a strong outreach in the country’s rural areas (>60 percent of loan portfolio), especially in its home region.
Crystal is growing quickly, both in balance sheet size and in outreach. It is expanding its branch network, mainly in rural areas elsewhere in the country, which should lead to a doubling of its loan portfolio by 2020. In parallel, the company is improving operational efficiency and strengthening the organization.
No project contact information provided at the time of disclosure.
Financial Intermediary - JSC MFO Crystal:
ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism.