Company ProfileOur History and ValuesCorporate GovernanceSupervisory BoardManagement TeamOrganizational ChartMain AchievementsOur CustomersVideo Report

Company Profile

 

PORTFOLIO SIZE (GEL)

270 mln.
Q3 2018
260 mln.
Q2 2018
205 mln.
2017

 

NET PROFIT (GEL ‘000’)

7’660 
Q3 2018
(unaudited)
4’970
Q2 2018
(unaudited)
8’135
2017
(audited)

 

 

PAR>30

1.61%
Q3 2018
1.40%
Q3 2017

 

PRODUCT LIST

  Business Loan
  Agro Loan
  SME Loan
  Consumer Loan
  Housing Loan
  Pawn Loan
  Other Loans

 

 

NUMBER OF BRANCHES AND BOUTIQUES

40 Branches
Q3 2018
22 Boutiques
Q3 2018

 

AREAS WHERE CURRENT LOANS ARE GRANTED

     48%
        Rural
37%
Municipal
15%
Semi-Municipal

 

NUMBER OF EMPLOYEES

           1’022                            947                                 896
           
                                           Q3 2018                                                     Q2 2018                                                                 2017

 

EMPLOYEES’ GENDER STATISTICS

39%
Male
61%
Female

 

Our History and Values

By Archil Bakuradze, Executive Chairman
 
It was the autumn of 1995 when a small group of Internally Displaced Persons (IDPs) from Abkhazia started CHCA, a not-for-profit organization aiming to support IDP community. It was hard time in Georgia, which survived two ethnic conflicts and the civil war with substantial part of population displaced, facing complete poverty. Georgia was practically a failed state with weak economy and no formal systems.
 
I was leading the development of CHCA with the help of my parents, friends, who made a core team, and most importantly – our co-founder and Chairman of the Board Mr. Alu Gamakharia, an entrepreneur and social activist from Abkhazia. 
 
Commencement of Crystal in 1998
As the team of young IDPs, we were looking for ways to start our business activity and obviously to keep supporting CHCA. After several attempts and pivots, we decided to commence a microfinance service. We raised our first fund of US$ 10,000 for the pilot program with the help of International Rescue Committee, who were supporting us through mentorship and passing vital management skills.
 
Donors’ Funding
From 1998 till 2001, the program successfully served thousands of micro entrepreneurs in the Western Georgia through grant funding raised from donors, including $352,000 for the revolving loan portfolio. The fund was successfully recycled and handed over to CHCA for further development of microfinance activity.
 
Borrowing from commercial bank
By 2001, we became self-sufficient – having phased out the grant funding – focusing on borrowing from Microfinance Investment Vehicles (‘MIV’s) and commercial banks, including our first lender in Georgia – TBC Bank.
 
Spin off from CHCA
As the program matured, at recommendation of funders, we decided to split a not-for-profit portfolio of CHCA and the microfinance program, which was successfully implemented in 2003. This is how Crystal Fund emerged. It was registered as a microfinance organization under a special provision of the Civil Code of Georgia.
 
Transformation into JSC
In 2007, based on the newly adopted Law on Microfinance Organizations of Georgia, Crystal Fund was transformed into an entrepreneurial legal entity. We have gone through a lengthy consultative process with funders, Board and the management. It took an adoption of the amendments into the Law which was led by Georgian Microfinance Association. In September 2007, Crystal Fund established JSC MFO Crystal, certified by the National Bank of Georgia, and transferred the shares into the ownership of founders, management and staff.
 
 
Our Corporate Values
 
We conduct our business with the following corporate values in mind:
 
Responsibility – responsible lending focused on avoiding over – indebtedness; we treat our customers fairly, with care and due forbearance; socially responsible attitude towards clients, employees, business partners, community and environment.
 
Transparency – customer should be able to compare costs, terms and conditions of a loan and understand consequences of a non-payment. Crystal’s relationship with clients, staff, funders and a wider society is based on transparency, frankness and fairness.
 

Partnership – a long–term, equitable and customer-focused relationship. The cornerstone of Crystal’s approach is care towards customers and sustainability.

Access – our product design, lending standards, distribution channels and customer interfaces are all about access. We are always accessible to our clients, business partners and each other.

Innovation – innovation and constant improvement is the way Crystal and its people work. We love technology and encourage creativity. Innovation is life!

 

 
 
 

 

Corporate Governance

Crystal has embarked at the further strengthening of the corporate governance system and policies, by adopting the action plan for developing relevant policies and complying with the UK Corporate Governance Code.

Supervisory Board and Committees

The main job of Supervisory Board (‘SB’) is to ensure effective supervision and governance of the company; resolutions made by SB deal with strategic issues, overall organizational structure, Board-level policies, large-scale projects, motivation and performance appraisal of Chief Officers, approvals of the annual milestones, financial forecast and decisions recommending actions to the shareholders.

SB is comprised of six members, including a Chairman, two independent directors and three directors representing investors and the shareholder. Two directors are Georgian nationals based in Georgia. Directors bring extensive experience of business development, corporate governance, banking/microfinance, technology, innovation and senior human resource development.

SB is chaired by Executive Chairman Archil Bakuradze (Georgia), financier, entrepreneur and a Founder of Crystal. Executive Chairman is appointed by and accountable to the shareholders. Executive Chairman also chairs Assets and Liabilities Committee (ALCO).

Deputy Chairman of SB is Nikoloz Loladze (Georgia), an experienced corporate director, an independent member of SB, who alternates Executive Chairman in his absence and chairs Internal Audit Committee, which the Head of Internal Audit Department reports directly to.

SB Members include (in alphabetical order): Jan Dewijngaert (Belgium), appointed by Incofin IM, who chairs Strategy and Innovation Committee; Aleem Remtula (USA), appointed by DWM, who chairs Social Committee; Clare Titcomb (UK), an independent member of SB, who chairs Risk Committee and Keith Young (UK), appointed by Crystal Fund, who chairs HR and Remuneration Committee.

 

 

 

 

Supervisory Board

 

Archil Bakuradze
Executive Chairman, Chairman of ALCO

Mr. Archil Bakuradze is the Executive Chairman of Crystal. He chairs the Supervisory Board and Assets and Liabilities Committee. Archil has founded Crystal being involved in its management and governance since 1998. He was a Chairman and currently serves as a Board Member of the Georgian Microfinance Association.  As part of his commitment to civil society, Archil holds non-executive positions in the Business and Economic Centre in the Parliament of Georgia and Charity Humanitarian Center “Abkhazeti”. For his contribution to the Internally Displaced People, in 2003, he received the international award from the Dutch Refugee Foundation (Stichting Vluchteling). Archil Bakuradze holds a BA in Economics from the Georgian Institute of Sub-tropic Agriculture and MBA degree from the Lancaster University. He is the UK FCO Chevening scholar and Fellow of the John Smith Trust.

 

Nikoloz Loladze
Deputy Chairman, Chairman of Internal Audit Committee

Mr. Nikoloz Loladze is the Deputy Chairman of the Supervisory Board of Crystal. He is a social entrepreneur and development consultant with more than 15 years of experience in economic development work. Mr. Loladze is a founder and board member of a number of prominent business and not-for-profit organizations in Georgia. In his capacity as a governance expert, Mr. Nikoloz Loladze is an advisor and board member of a number of business and not-for-profit organizations, including the Georgian Stock Exchange, JSC Brokerage Company Caucasus Capital Group, JSC Mobile Finance Eurasia, UK-Georgia Professional Network and Anchor Consulting LLC. Mr. Loladze holds postgraduate qualifications in Management (Warwick, UK), and Physics (Tbilisi, Georgia), as well as certificates in Project Management, Policy Analysis, and Public Administration.

 

 

Jan Dewijngaert
Chairman of Strategy and Innovation Committee

Mr. Jan Dewijngaert has broad Private Equity experience in acquiring, managing and selling equity stakes in a wide variety of sectors. Executed more than 60 investments and exits in Europe and Asia. He acts as a Managing Partner or Managing Director and Member of the Investment Committee of various private equity funds. Mr. Dewijngaert has extensive Board Member experience in multiple sectors and countries. Currently, besides his Board role at Crystal, he acts as a Board member of BEM (real estate fund), Genesis Private Equity Fund (Czech and Slovak PE fund), Araratbank (Armenia) and Arvand (Tajikistan).

 

 

 

Aleem Remtula
Chairman of Social Committee

Mr. Aleem Remtula is DWM’s investor nominee director on the Supervisory Board of Crystal. He has been on the Board of Crystal since DWM’s equity investment in 2011 and leads the Company’s Social Committee. Mr. Remtula has a decade of impact investing experience with socially responsible, double and triple bottom line venture capital and private equity funds in the U.S. and Europe. He is a Director of Private Equity at DWM covering Central and South Asia and the Caucasus. Mr. Aleem Remtula received his MBA from Harvard Business School and his BA in Economics and Finance from Princeton University.

 

 

 

Keith Young MBE
Chairman of HR and Remuneration Committee

Mr. Keith Young MBE is a member of Board and Chairman of HR and Remuneration Committee. He is an Entrepreneur with considerable expertise in the publishing, communications and new technology industries. Mr. Young co-founded Private Equity Investor plc. He also founded Easynet plc. His publishing interests include Parliamentary Communications Plc, the publisher of Parliament’s “House Magazine” and European Parliament’s “Parliament Magazine”. He has been the Executive Chairman of cScape Group PLC and a co-founder of Group NBT plc (formerly NetBenefit PLC). He served as a Non-Executive Director of Private Equity Investor PLC. Mr. Keith Young MBE holds a Degree in Economics from the London School of Economics, also has a broad background of investment in and management of companies in a number of other sectors.

 

 

Lilit GHARAYAN

A co-founder and CEO of ADWISE Consulting. She is leading the business advisory sector of the Company including banking advisory services.

Lilit has more than 16 years of progressive experience in different industries out of which around 8 years of mostly leadership positions in banking and financial sector. Lilit’s bank management experience includes roles of Head of Budgeting & Controlling Department, Head of Internal Audit Department, Management Board Member responsible for HR & Operations at ProCredit Bank as well as Head of Planning & Financial Analysis at Farm Credit Armenia UCO.
Lilit holds MBA degree with major in Finance from American University of Armenia, MA from Yerevan State University and pursues ACCA and CIA qualifications.

 

 

 

 

 

 

 

 

 

Management Team

 

 

David Bendeliani

Chief Financial Officer (CFO) & acting CEO

 

 

 

 

 

 

 

Kakha Gabeskiria

Chief Business Officer (CBO)

 

 

 

 

 

 

 

Manuchar Chitaishvili

Chief Innovation and Marketing Officer (CINO)

 

 

 

 

 

 

 

Sergo Nozadze

Chief People & Organizational Development Officer (CPODO)

 

 

 

 

 

 

 

Beka Tsitskishvili

Chief Information Officer (CIO)

 

 

 

 

 

 

 

 

Crystal Group

 

 

Malkhaz Dzadzua

Chief Executive Officer

 

 

 

 

 

 

 

 

 

Organizational and Management Structure

 

  • Supervisory Board and Management Team

 

  • CEO, Officers and Divisions

 

 

 

 

Main Achievements

 

 JSC MFO CRYSTAL is:

 

2018
 Fitch Ratings has affirmed JSC MFO Crystal’s Long-Term Issuer Default Ratings at ‘B’ with a Stable Outlook.

 

2017 

Issued local currency denominated bonds of 10 mln GEL amount.
 Fitch Ratings assigned JSC MFO Crystal a final long-term rating of ‘B’ with stable outlooks

 Implemented International Reporting Standard – IFRS 9

 

2016
 Implemented micro credit distribution channels called “Credit Boutiques” in rural areas

 

2015

JSC MFO Crysal – Member of the UN Global Compact

 

2014

International campaign member Certificate of Appreciation for valued participation in “Borrow Wisely” Campaign 2014 by Microfinance Center

 

2013

S.T.A.R. MFI by MIX Social Rating

 

2012

Platinum Prize by Mix-Market for Social Performance reporting

 

2011

SMART Campaign’s winner in “Plain Language Loan Contract for clients”

 

2010

Obtained International Social Rating

Our Customers

Our objective is to build long-term relationships responsibly so as to help our customers on the path to financial success.

Our customers are the people who are growing the economy of Georgia from its very foundations – on their farms, in their shops, hotels, hostels, restaurants, bars and in construction, workshops and manufacturing units. It is they who are taking the benefits to the population at large of the massive infrastructure spending and tourist numbers now being seen in Georgia. Their efforts are bringing a better life to their families and employees and thus hundreds of thousands of people. They are resourceful and innovative. We are doing our best to help them, not just by making available the money to fund their efforts, but with support and ideas. Their future is our future and the future of Georgia.

 

Zaza Gagua is a director of the company “Vino Martvili”. He has spent all his life in Tbilisi and married a girl born in the city. However, more than a year ago now he left Tbilisi and settled down in Martvili with his family.
“This year, our house in Martvili turned 80 years old. My great grandfather built it back in 1935. My wife and I decided to visit the house not only during summertime, but also to restore it and to lead our everyday life here”.
He first tried his hand at viticulture in 2012. He purchased half a hectare of land, together with his friends, and planted a vineyard of Ojaleshi. Four years have passed and he is waiting now for the harvest.
While his own vineyard is still young, he is buying grapes from other vine-growers. He makes sure that his partner cultivators use organic methods to grow their grapes.
“Once, a vine-grower called me from the village of Betlemi. I am loyal to Ojaleshi, which he produces using organic methods. He has one of the best vineyards from among those from which I buy grapes each year. He told me that he had 0.5 tons of grapes. I was very upset that I could not buy them as that year I did not have much Megrelian Ojaleshi from which to produce wine. We could not afford to pay a high price and also we did not have a sufficient number of vessels. However, it seemed to me that it was inadmissible not to take these grapes – they must not fall into the hands of someone who would produce bad wine from excellent grapes!’
Right away he decided to apply to Crystal. As Zaza states, he did not have to undertake much in the way of enquiries as he was immediately offered a loan with favorable conditions and a one-year grace period
They have good plans for the future as well: they intend to grow a vineyard where all Megrelian and Abkhazian breeds will be planted- around 120 varieties. They need to purchase a plot of land and expand the wine cellar. “We should turn this place into a hub of wine tourism. We have a plan for 5-10 years, which we are following step-by-step. In our future plans, we see Crystal as a partner, as the state programs are intended more for the eastern Georgian vineyard owners.

 

Tamaz Kalatozishvili (38) is a native of Tbilisi. Since graduating from school he has been performing physical work to earn a living and support his family. He used to work for private entrepreneurs and various farms. For a while, he was employed as a driver of agricultural machinery at the Ministry of Agriculture. But one day he decided that he would not be dependent on a salary anymore and would start his own business. To obtain assistance, he followed the recommendation of his friend and applied to Crystal. Gaining an initial loan of USD 6000, he purchased a lorry. In parallel, he still continued to work as a driver: as he explained, he did not know whether his efforts would bear fruit and he was afraid to deprive the family of a stable income.
The business started to prosper. The number of orders allowed him to repay the loan and to make a profit. So since he did not need to borrow more money he quit his job and bought another agricultural machine, this time a tractor.
“I have a family and three kids. My salary was the only source of income. I took a risk and became a businessman. Now, I employ another person to be a driver and I pay him myself. Thanks to Crystal, I can call myself a successful person. I generate am generating a much higher income and I can think about further development. As soon as I repay the loan, I plan to apply to Crystal to purchase additional machinery.
“A little while ago, I accompanied my friend to Crystal and guaranteed his loan, which he used for purchasing machinery. I recommend everyone not to step back, but to start one’s own business, to make the effort and increase the money they make”

 

Lali Shengelia is a successful entrepreneur from the village Zeda Vani. She has been engaged in the poultry business for ten years now. She started the business with her own saving and initially bought 2000 chickens. The business began to prosper. Gradually, she started to add chickens and sell them not only in the villages of Vani, but beyond the region as well. She hired six people and, in parallel, started to focus on expansion of her business assets.
“Hardships started when we learned about the illness of my husband. While suffering from diabetes, he was also diagnosed with tuberculosis. He underwent treatment in Abastumani, but he felt really bad. Our expenses started to soar. It was a difficult period: we had sold all our chickens, spent the money and ran out of finances. We had to urgently raise funds to continue our business activities.
Not having any experience with banks, I was recommended to apply to Crystal. I was hosted by a friendly employee, whom I started to trust. I disclosed all my problems. They studied my business and offered a loan with a grace period. They offered to lend money for purchasing chickens and gave an opportunity to repay it after they were sold. Such condition was definitely welcome for me.
Currently, I have 10 000 chickens. I sell both color and broiler chickens. My business is running well, though sometimes unforeseen circumstances do occur. Increase of USD rate automatically leads to rise of prices for chicken food. Sometimes it happens that chickens die due to some disease. In any unforeseen event, I rely on Crystal and regard it as my savior”.

 

Irakli Pipia (30) started his business about a year ago. Currently, he is a director of a block factory which employs 11 people. It all started with a simple idea, but with zero experience.
“Being a newly founded company, we did not have that large a scale production. We needed to purchase a block cutting machine. As our savings did not allow acquiring one, we started to search for funds. Being a newly-fledged firm, almost all the banks refused to extend a loan to us. Most likely, given our small amount of experience they did not want to take the risk. Finally, we applied to Crystal, which offered great support to us. Thanks to their loan, we managed to purchase new machinery and almost doubled our production”.
The company “Green Building” of Irakli Pipia was a successful startup. He says that he took a risk and it was worth the effort. When asked if he thinks himself a successful man, he smiles and says that he is not dissatisfied. He plans to buy new equipment soon and to employ another 25 people. He recommends everyone not to be discouraged by initial problems. He thinks that spending labor and making the commitment will certainly bring success.
“More than a year has passed since the foundation of the “Green Building” Ltd. Seeing our turnover, the banks are now eager to offer us different types of loans, but Crystal was the only one to stand by our side in our moment of difficulties. All the conditions of this company are acceptable to me. That’s the reason I want to continue cooperation just with Crystal”.

 

Video Report

Crystal raises USD 10 million for green financing
Young Entrepreneur’s School
Zaza Gagua – Winemaker
Tamaz Kalatozishvili – Entrepreneur
Lela Shengelia – Entrepreneur
Irakli Pipia – Entrepreneur