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.
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.
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 1st quarter made up 4.2%.
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.
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).
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%.
“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%.
“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.
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 4th quarter of 2020, the number has not changed, while increased by 6 units in comparison with the 1st quarter of 2020.
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.