ACTING NBG PRESIDENT: NBG MONITORS COMPLIANCE WITH SANCTIONS
“Compliance with sanctions is very important, and the financial sector is taking it very seriously”, declared Archil Mestvirishvili, acting president of National Bank of Georgia (NBG). He noted that NBG “monitors compliance with sanctions”.
ICC HEAD IN GEORGIA: “GEORGIAN DREAM” HAS LOST LEGITIMACY
Fady Asly, head of the International Chamber of Commerce (ICC) in Georgia, estimates that the ruling Georgian Dream has lost legitimacy, as its leaders are trying to “lead us to Russia instead of Europe”.
Asly stated this in an open letter published today, which is addressed to Bidzina Ivanishvili (billionaire founder of the Georgian Dream), which he signs as a businessman, and not as the head of ICC Georgia.
GEORGIA’S AVERAGE GDP GROWTH RATE FOR THE FIRST 4 MONTHS MADE UP 7.3%
Sakstat released estimation, according to which Georgia’s real GDP growth in April, in comparison with the same month of 2021, made up 7.5%. Average rate for the 1st quarter made up 7.2%, while for January-April – 7.3%.
NBG FINANCIAL STABILITY COMMITTEE LEFT COUNTERCYCLICAL BUFFER AT 1%
National Bank of Georgia (NBG) reported that its Financial Stability Committee decided today to keep the countercyclical buffer unchanged at a neutral level of 1%.
NBG noted that for the past 2 years, ratio of loans to Georgia’s GDP has decreased, reflecting the effect of high economic growth and strengthening of lari exchange rate.
NBG INCREASED LIQUIDITY REQUIREMENTS FOR NON-RESIDENTS’ DEPOSITS IN FOREIGN CURRENCY
National Bank of Georgia (NBG) reported that its Financial Stability Committee decided today to increase the liquidity requirements for non-residents’ deposits, placed in foreign currency. The changes will enter in force on September 1.
NBG: RENT GROWTH IN GEORGIA EXCEEDS THE LONG-TERM TREND BY ABOUT 30%
In Georgia, growth of selling price for real estate is rather proportional to construction costs and inflation of industrial production, National Bank of Georgia (NBG) said. Whereas in case of rent, the growth is of larger scale and exceeds its long-term trend by about 30%, NBG pointed.
NBG VICE PRESIDENT: LINKING LOAN INTEREST TO TIBR WILL BE FINANCIALLY MORE JUSTIFIED
Papuna Lezhava, vice-president of National Bank of Georgia (NBG), points that the Tbilisi interbank rate of interest (TIBR) represents a more market-based and “financially more justified interest”.
Lezhava confirms that possibility of linking loan interest to TIBR is being considered, but he does not name the terms at this stage.
AMENDMENTS, RELATED TO GEORGIAN PARTNERSHIP FUND, APPROVED
At the plenary session today, the Georgian Parliament approved draft amendments to the law “On Joint Stock Company – Partnership Fund” (77 votes “pro”).
In particular, the name of the Partnership Fund is changed to Georgian Development Fund.