NBG: SHARE OF IDLE CREDITS IN TOTAL CREDITING TENDS TO DECREASE
National Bank of Georgia (NBG) declared that as a result of introduction of new standards of capital adequacy, quality of capital of commercial banks improved since the beginning of the year and became risk-based.
At the same time, against the background of improved economic activity, share of idle credits in total crediting tends to decrease, NBG indicated.
FINANCIAL STABILITY COMMITTEE DECIDED TO INTRODUCE REGULATIONS FOR RETAIL CREDITING
National Bank of Georgia (NBG) reported that its Financial Stability Committee decided today to introduce regulations for retail crediting. Financial institute will have to issue credit only after study of solvency of client.
COUNTERCYCLIC BUFFER IS MAINTAINED AT 0%
National Bank of Georgia (NBG) reported that its Financial Stability Committee decided today to maintain countercyclic buffer intact, at the level of 0%.
The buffer was defined for the first time in December 2017 and then, for the second time – in this March.
NBG RECOMMENDS FINANCIAL INSTITUTIONS TO ESTIMATE PROPERLY INTEREST RISK OF FOREIGN CURRENCY, WHEN DETERMINE COST OF CREDIT
National Bank of Georgia (NBG) recommends financial institutions to estimate properly interest risk of foreign currency, when determining cost of credit.
Dollarization-related risks remain essential challenge for financial system, NBG specified.
GEORGIAN ECONOMY MINISTER: WE WANT THE EU TO HELP US WITH FORMATION OF CONSTRUCTION AND ENGINEERING STANDARDS
We want the EU to help us with formation of construction and engineering standards, Georgia’s Minister of Economy and Sustainable Development Giorgi Kobulia declared. These are standards, which concern both construction process directly and stages of construction planning and engineering, he specified.
DEPUTY ECONOMY MINISTER: GEORGIA SHOULD BECOME REGIONAL HUB OF ENERGY TRADE
Georgia’s Deputy Minister of Economy and Sustainable Development Natia Turnava said that work on rapprochement of concept of energy market with standards of the EU is conducted under the auspices of the EU.
This concept ensures openness and competitiveness of the market, and Georgia will be transformed into regional hub of various activities directions, including energy trade, Turnava stated.
ANALYSIS OF THE WB: IF ALL HYDROELECTRIC STATIONS ARE BUILT ACCORDING TO MEMORANDUMS, POWER GENERATION WILL EXCEED DEMAND
Analysts of the World Bank (WB) indicate that if all hydroelectric stations are built according to memorandums, which Georgian government signed with investors, then excessive electric power will be generated.
According to the analytical document of the WB, in case of fail to sell this electricity, the state can face additional fiscal expenses, which make up in current costs 1.2 billion lari ($474 million).
“WEG”: IT IS NECESSARY TO APPROACH CAREFULLY TO INTERPRETATION OF RESULTS, PROVIDED IN THE WB-PREPARED DOCUMENT
It is necessary to approach carefully to interpretation of results, provided in the document, prepared by the World Bank (WB) (assessment of fiscal expenses and tariff impact in hydropower), as taking current reality into account, the considered scenarios have low probability, organization World Experience for Georgia (WEG) declares. Nevertheless, it is very important to envisage revealed regularities and major conclusions, the organization notes.
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