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Electricity prices in Turkey have risen and are leaving Georgia

According to G&T's research, in June 2026, electricity exports to Turkey dropped sharply - 7.9x in volume and 12.0x in value. Exports to Turkey totalled 24.0 GWh and US$ 0.7mn, and average export price stood at 2.8 USc/kWh (-34.4% y/y).ESCO was the sole exporter, supplying electricity to settle a previous obligation. The sharp declines in export prices, volumes and revenues reflect lower prices and increased generation in Turkey:• In June 2026, Turkey’s average market price was 2.9 USc/kWh -34.4% y/y, +61.1% m/m. • Such a low price significantly reduces the economic viability of exports, as exporters must also cover transmission and guaranteed-capacity fees totalling 1.5 USc/kWh.• Electricity generation in Turkey increased sufficiently for the country to pause commercial imports from Georgia. Higher generation in Turkey reflected favourable hydrological conditions and rapid solar capacity additions.Exports from Georgia to Turkey resumed on July 6, 2026 as Turkish electricity prices increased. The average Turkish market price reached 6.0 USc/kWh over 1-20 July. In July 2026, the companies exporting electricity were: Achar Energy 2007, Energy Development Georgia, Svaneti Hydro, Kasleti-2, AISI LLC, Austrian Georgian Development and ESCO. 

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NBG issues statement on sanctions

“According to the information available to us, as a result of the investigation conducted by the relevant investigative service against the aforementioned companies, none of the sanctioned companies had their area of ​​activity in Georgia. In addition, additional investigative actions have been initiated against them.We note here that the regulatory framework of the National Bank of Georgia imposes strict requirements for market entry and operation and represents an important filter for entities involved in illegal activities.In addition, the regulatory framework for virtual asset service providers developed by the National Bank is in line with the standards of the International Task Force on Combating Money Laundering (FATF) and best international practices, as confirmed by the 2024 assessment of the Committee of Experts of the Council of Europe (Moneyval). According to the assessment, in relation to Recommendation 15 (which provides for compliance with the requirements for the introduction of new technologies and the regulation of the activities of virtual asset service providers (VASPs)), Georgia’s rating is "Largely compliant." Similar assessments have been made regarding this recommendation by, for example, the United Kingdom and France," the regulator's statement reads.

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Banks increased their Return on Equity – Rating

The most satisfied shareholders are the shareholders of the Bank of Georgia Group. ROE for every 100 GEL invested is >31 GEL. TBC ratio is 23.5%. Liberty/Basis is almost equal within 15%. Return on capital >20% is considered optimal.

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Banking sector increases profit by 18%

According to the 6-month statistics of NBG, the total profit (of profitable banks) is 1.914 billion GEL (H1/2025 - 1.619 billion. +18.2% Y.Y).All banks are profitable, except for the sanctioned VTB (-14.9 million) and Silk (-13.8 million). Also at a loss are digital "Hash Bank" (-6.2 million) and "Paysera " (-1.2 million), the 3rd digital - "Pavebank" has a 6-month net profit of 5.6 million GEL.In total, there are 19 entities on the market, including 2 microbanks (Crystal and MBC).

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Nasdaq to support the development of Georgia's banking sector

The country's five leading commercial banks Bank of Georgia, TBC Bank, Liberty Bank, Terabank, and Basisbank will implement the Nasdaq Calypso system on a shared infrastructure covering the full front-to-back trade lifecycle. This initiative, executed under the Georgian Market Advancement Program (GMAP) and coordinated by GFMTA, represents a significant milestone in the development of Georgia's capital markets.The five participating commercial banks account for the largest share of assets in the Georgian commercial banking sector. Their transition to a shared, internationally recognized platform marks a crucial step toward establishing Georgia as a modern and well-governed financial market.Notably, over the past five years, the Georgian commercial banking sector has experienced double-digit growth, with total assets approaching USD 38 billion a testament to the scale and dynamism of the country's financial system. Alongside this growth, demand has increased for more sophisticated treasury infrastructure capable of supporting securities and derivatives markets, enterprise-wide risk management, and increasingly stringent regulatory requirements. At the same time, the investment required to implement and maintain such infrastructure at an individual institutional level poses a significant challenge for any single bank. A shared, coordinated approach, involving sector-wide pooling of resources and expertise, represents the most efficient means of achieving this objective at scale.According to Natia Turnava, Governor of the National Bank of Georgia, the modernization of Georgia's treasury infrastructure is a strategic priority for the NBG and an important step forward in the continued development of the country's financial system. She emphasized that, with the NBG's support, the shared platform will provide the reliable, world-class infrastructure needed to support the banking sector's continued growth."By migrating five leading Georgian commercial banks to a unified, internationally recognized platform, we are raising the standards of risk management, regulatory oversight, and operational resilience across the sector. This initiative reflects our commitment to building a strong and transparent financial market that fully aligns with international best practices and supports Georgia's economic growth," said Natia Turnava.Magnus Haglind, Head of Capital Markets Technology at Nasdaq, noted that Georgia serves as a prime example of how a shared infrastructure model can create tangible value."Both for individual institutions and for the financial system as a whole. Drawing on Nasdaq's experience in managing large-scale modernization programs, financial institutions gain access to deep institutional knowledge and future development opportunities without having to bear the full costs, risks, or operational complexities independently. GMAP represents precisely the kind of structured, country-level framework that ensures the success of a transformation on this scale. We are delighted to have the opportunity to support the National Bank of Georgia in this initiative and to assist the Georgian banking sector in establishing the infrastructure it needs for its next phase of growth," said Magnus Haglind.

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Gotsiridze Awaits Thursday's Auction

According to the Central Bank, as of 20.07.2026, the balance of refinancing loans has decreased to 300.5 million, and the one-month instrument has decreased by 500 million to 3 million.Investment bankers explain the decline in demand for GEL from banks simply - the sector has sufficient GEL liquidity and is not borrowing.Roman Gotsiridze explains the more than sufficient GEL liquidity in banks with the policy of the National Bank of Georgia. The supervisor focused on replenishing reserves and curbing price growth is no longer a priority.The politician (former president of the National Bank of Georgia) does not approve of the choice of the National Bank of Georgia, but he does not dislike it either. He believes that the processes could have been managed more professionally."Pension funds, government money on bank deposits, emigrant remittances converted into lari, crypto, legal and illegal financial flows, which of course benefit the banking system," - according to Gotsiridze, it is good that the sector makes a lot of profit, because this ensures the stability of the system. It is good that banks no longer need loans from the National Bank of Georgia, because they have their own resources. It is good that the National Bank of Georgia buys currency and replenishes the country's foreign exchange reserves, and at the same time, a large amount of money has accumulated in banks due to it.But it is bad that with a $1.4 billion purchase, the injection of 4 billion GEL into the market causes price increases, accelerates inflation and prevents the GEL from strengthening, which means that imports become more expensive," Roman Gotsiridze argues on social networks. If it is good, then why is it bad, and if it is bad, how can it be good?"It is not easy to say whether it is good or bad, but processes need to be managed professionally and not so rigidly," as he says, the NBG and the government manage."So the event is multi-faceted, which also indirectly shows other events," Roman Gotsiridze said.

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