IN Q1, GEORGIA’S GDP REDUCED BY 4.2%

Sakstat reported that Georgia’s real GDP growth in March made up 4%, if compared with the same month of 2020. In turn, average reduction of the country’s economy for the 1^st quarter made up 4.2%. More...

ADB REDUCED FORECAST OF GEORGIA’S ECONOMIC GROWTH TO 3.5%

Asian Development Bank (ADB) updated its forecast, according to which Georgia’s economy in 2021 will grow by 3.5%. Forecast, released in September 2020, had projected 4.5% growth. More...

AS OF JANUARY 1, GEORGIAN POPULATION GREW BY 0.3%

Sakstat reported that as of January 1, size of Georgian population made up 3.7 million. If compared with the same period of 2020, the population has increased by 0.3%. More...

IN Q1, RATIO OF DEPOSITS TO GDP INCREASED BY 2.9 PP Q-O-Q AND BY 15.5 PP Y-O-Y, OF LOANS – BY 1.4 PP AND 9.2 PP, RESPECTIVELY

National Bank of Georgia reported that as of March 31, ratio of deposits, placed in Georgian commercial banks, to the country’s GDP made up 73%.

If compared with the end of 2020 (70.1%), the indicator has increased by 2.9 percentage points (pp). More...

FROM JULY, NORM OF MINIMAL RESERVE REQUIREMENTS FOR FUNDS, ATTRACTED IN FOREIGN CURRENCY, TO BE DEFINED ACCORDING TO BANK’S LEVEL OF DEPOSITS’ DOLLARIZATION

National Bank of Georgia (NBG) decided to determine, starting from July, the norm of minimal reserve requirements for funds, attracted by banks in foreign currency, separately for each bank in accordance with the level of dollarization of deposits.

Namely, if the level of deposits’ dollarization in the bank does not exceed 40%, then the reserve norm for the balance of funds, attracted in foreign currency for a period of up to 1 year, will be decreased from 25% to 10%. More...

“SOCIETY AND BANKS”: MONETARY POLICY COMMITTEE’S DECISION IS RESPONSE TO RISING INFLATION RISKS

Non-governmental organization Society and Banks estimated decision of the Monetary Policy Committee of National Bank of Georgia (NBG) as continuation of cautious approach, displayed in previous periods, and a response to growth of inflation risks.

To remind: NBG’s Monetary Policy Committee decided on April 28 to raise the monetary policy rate by 1 percentage point up to 9.5%. More...

“SOCIETY AND BANKS”: AS OF APRIL 1, CREDITS WITH FLOATING INTEREST RATE MADE UP 42.8% OF TOTAL CREDIT PORTFOLIO ISSUED IN LARI

Non-governmental organization Society and Banks reported that credits, issued by Georgian banks with a floating interest rate, accounted as of April 1 for 42.8% of total portfolio of loans, issued in lari.

As of April 1, there were 124,700 such credits in Georgia (in absolute majority of cases, their rate is tied to the refinancing rate (the monetary policy rate)), which volume totaled to 7.42 billion lari, the organization specified. More...

AS OF MARCH 31, COMMERCIAL BANKS’ BRANCHES INCREASED IN NUMBER BY 6 Y-O-Y, WHILE SERVICE CENTERS DECREASED BY 27

National Bank of Georgia reported that number of Georgian banks’ branches totaled as of March 31 to 160. If compared with the 4^th quarter of 2020, the number has not changed, while increased by 6 units in comparison with the 1^st quarter of 2020. More...

GEORGIA’S PREMIER AND EBRD REGIONAL DIRECTOR FOR CAUCASUS DISCUSSED COOPERATION ISSUES

Today, Georgia’s Prime Minister Irakli Garibashvili met with EBRD regional director for the Caucasus, Catarina Bjorlin Hansen.

As administration of Georgian government reported, the parties reviewed ongoing projects and outlined the prospects for future cooperation. More...

DISPUTE RESOLUTION AND NEGOTIATION CENTER OF EU ENERGY COMMUNITY TO TAKE PART IN “NAMOKHVANHES” PROJECT MEDIATION

Dispute Resolution and Negotiation Center of the EU Energy Community will be included in the mediation on the NamokhvanHES project, reported Georgian Ministry of Economy and Sustainable Development.

To remind, local residents and part of Georgian public oppose construction of the hydroelectric power station and hold permanent protests. More...

GEORGIAN SIDE TOOK PART IN “CONNECTING EURASIA: SMART PORTS AND RAIL FORUM”

Georgia’s Deputy Minister of Economy and Sustainable Development Gennady Arveladze took part in the opening of the maritime and railway forum “Connecting Eurasia: Smart Ports and Rail Forum”, reported Georgian Ministry of Economy and Sustainable Development.

The Ministry reported that the virtual forum was organized by the US Department of Commerce and the US Embassies in Georgia, Turkey and Azerbaijan. More...

Tabula: “TIKARADZE: SOME DOCTORS HAVE COMPENSATION OF 300 LARI A MONTH, SOME – 120,000, THIS IS UNFAIR”

Ekaterine Tikaradze, Georgia’s Minister of IDPs from Occupied Territories, Labor, Healthcare and Social Protection, declared that “[labor’ compensation of our doctors is radically asymmetric”, “some doctors have compensation of 300 lari a month, and some doctors – 120,000 lari”.

“You would certify too that this is unfair”, the Minister said, while speaking in the country’s Parliament. More...

Rezonansi: “IN REALITY, WIND AND SOLAR ENERGY CANNOT HELP GEORGIA’S ENERGY SECTOR”

Giorgi Chikovani, head of Georgian Energy Development Fund, has planned that by 2030, wind energy should make up 20% of Georgia’s generation, while solar energy – about 5%, the newspaper reports.

Regarding hydropower, Chikovani says that, unfortunately, most of the projects in this direction have been stopped – the matter concerns 20 small and medium-sized HESes. More...

Netgazeti.Ge: “OIL SPILLS IN KAKHETI, STATE ANNOUNCES SANCTIONS AGAINST “FRONTERA””

Former MP Beka Natsvlishvili declares that oil spills from stopped well in Dedoplistskaro (Kakheti region) and contaminates soil. The well belongs to Frontera, while the spilled oil reaches almost Vashlovani reserve, he notes. More...

Forbes Georgia: ““LOPOTA SPA RESORT” IS EXPANDING – TOTAL INVESTMENT IN NEW FACILITIES IS ABOUT 20M LARI”

This year, several new facilities will be added to Lopota Spa Resort (a hotel complex on Lake Lopota in Kakheti region), investment in which will total to about 20 million lari, the magazine reports.

In particular, the 15^th premium hotel building with 51 rooms will be added to the complex at the end of June, as a result of which the hotel’s total capacity will increase to 236 rooms. More...

MICROFINANCE SECTOR IN GEORGIA (2017-2020)

- In 2017-2019, new regulations on microfinance institutions (MFIs) entered into force, which significantly altered the landscape of the industry.

- Between Q1 2017 and Q4 2020, the number of MFIs and employees in the sector fell, with the former dropping to 40 and the latter to 4,145 by Q4 2020 (52% and 16% decrease, respectively). More...