“The reforms implemented in the country by the Government of Georgia and the NBG to develop the capital market were based on the principle that market growth and investor protection are parallel and equally important objectives. Accordingly, the aim of the reforms implemented in recent years was not only to increase issuances, but also to strengthen market reliability, transparency, and sustainability,” noted Ekaterine Mikabadze.The First Vice-Governor of the NBG also emphasized the importance of financial intermediaries in enhancing the inclusivity of the capital market. As she pointed out, increasing the participation of retail investors (individuals) in the public securities market particularly in segments where they are currently underrepresented requires, among other factors, the proactive involvement of brokerage companies and commercial banks. This includes simplifying access channels and reducing transaction costs.Alongside Ekaterine Mikabadze, the panel discussion featured David Urbaneja-Furelos, Head of the Asian Development Bank’s Private Sector Infrastructure Finance Group for the Caucasus; Irakli Nadareishvili, Deputy Minister of Economy and Sustainable Development; Giorgi Danelia, Chief Investment Officer of Wissol Group; and Ekaterine Kavtaradze, Director of Tegeta Holding.The second annual International Capital Markets Conference was held with the support of the National Bank of Georgia and brought together over 450 participants, including representatives of international financial institutions, investment banks, investors, issuers, and regulatory bodies.

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According to the regulation, the submission of a document confirming the GMP (Good Manufacturing Practice) standard for pharmaceutical products has become mandatory since October last year. Retailers were given until April 1, 2026, to sell off their stocks, but the business sector was unable to fully sell their stocks within the established timeframe.Business Arguments and New Deadlines According to the Pharmacists Association, based on consultations with the relevant ministry, the government has taken into account the challenge facing the sector. Under the new resolution, retail and wholesale sales (except for imports) of products whose registration was suspended due to lack of GMP standards are permitted until their expiration date.“Business was unable to sell the remaining products during this period, which is why we appealed to the Ministry and the government changed the decision,” the Pharmacists Association said.Tightening of GMP standardsDespite the exemption for the sale of remaining products, the rules for registering pharmaceutical products in Georgia are becoming stricter: From October 1, 2025: Any medicine that undergoes registration or re-registration must have a document of compliance with the European GMP standard. Scope of the requirement: The standard applies to both the final product and the substances used to manufacture it. Obligation: Compliance with this rule is mandatory for both local manufacturers and distributors. According to experts, the reform aims to bring the quality control of medicines on the market closer to European standards, although allowing the sale of surpluses during the transitional period will protect businesses from significant financial losses.

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The ministry also announced that the number of students admitted to master’s programmes at state universities will increase for the same academic year.“This adjustment will also impact master’s degree admissions, as most bachelor’s programmes have transitioned to a three-year study model. By the 2027–2028 academic year, the majority of students enrolled in 2024 and 2025 will complete their bachelor’s degrees. Consequently, the number of students eligible for admission to master’s programmes will rise in 2028–2029,” the Ministry explained.According to the ministry, the duration of general education is changing as part of ongoing reform. The secondary school level now comprises grades 10 and 11, with Year 12 becoming optional. Students who wish to continue into the 12th grade will be able to do so through prior registration.“Additionally, organised remedial classes will be introduced in schools for 11th graders, enabling students to prepare for national exams. This initiative will also benefit students currently in the ninth grade, who are actively engaged in their studies,” the Ministry’s statement reads.

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According to the NBG, heightened geopolitical tensions in the Middle East and substantial disruptions to transit through the Strait of Hormuz have temporarily disrupted traditional supply chains. On the one hand, these developments have already led to a marked increase in energy and shipping costs across international markets. On the other hand, if these dynamics persist, they could increase the risk of inflationary processes becoming more broad-based globally. Notably, before the escalation of geopolitical tensions, inflation dynamics were broadly in line with the NBG’s central scenario, under which inflation was expected to converge to the 3 per cent target from the second quarter of 2026 as temporary factors faded. Headline inflation in February 2026 stood at 4.6 per cent, as expected. Importantly, the contribution of food prices to inflation has begun to moderate, while measures of sticky prices and inflation expectations have remained broadly anchored around the target.However, amid ongoing geopolitical developments, the recent rise in oil prices has already been partially transmitted to the Georgian market and is expected to put upward pressure on headline inflation in March.Accordingly, under the NBG’s updated assessment, inflation is expected to be higher than in the central scenario in the short term. However, over the medium term, the projected path of inflation largely depends on the intensity and persistence of global inflationary pressures, which remain subject to considerable uncertainty,” the NBG has said.According to the Monetary Policy Committee’s assessment, the situation has shifted from the latest published central scenario to a high-inflation risk scenario, one of the key risks of which envisages higher oil prices amid escalating geopolitical tensions.“Notably, the severity and duration of inflationary pressures on the Georgian economy stemming from the geopolitical situation will largely depend on how these processes evolve going forward. It is also important to note that, despite recent developments, the sovereign risk premium indicator for Georgia has remained broadly stable at low levels, which, in turn, helps mitigate the impact of the external shock,” the NBG said.At this meeting, the Monetary Policy Committee also discussed high- and low-inflation risks relevant to the current situation.“Specifically, sustained high levels of energy prices would raise shipping and production costs globally, generating additional supply-side shocks. Under conditions of successive shocks, the risk of second-round inflationary effects also increases. In response to these developments, central banks in advanced economies may adjust monetary policy toward a tighter stance, which, in turn, could trigger capital outflows from emerging economies. Taking these factors into account, the risks of imported inflation in Georgia are expected to rise. Should these risks materialise, fundamental processes would necessitate a higher trajectory for the monetary policy rate.On the other hand, there are also signs of the realisation of low-inflation risks. In particular, inflationary pressures arising from geopolitical factors could be temporary. If disruptions in the Strait of Hormuz are resolved relatively quickly and supply from other oil-producing countries increases, energy prices may decline sharply from their peaks. Moreover, if Georgia’s sovereign risk premium remains low for an extended period, the external balance could further improve, exerting downward pressure on inflation. The realisation of low inflation risks would imply the possibility of easing the monetary policy stance.As a result of the ongoing macroeconomic analysis and consideration of existing risks, the MPC considered it optimal to leave the monetary policy rate unchanged at 8 per cent. Amid heightened uncertainty, the NBG will continue to actively monitor ongoing developments and the intensity of their transmission to the domestic market. If inflationary shocks stemming from the geopolitical situation persist and/or their scale amplifies the risks of second-round effects, the MPC stands ready to maintain the current tight stance for longer than expected and, if necessary, to tighten it further,” the National Bank of Georgia has said.The next meeting of the Monetary Policy Committee will be held on May 6, 2026.

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As a result, the Bank of Georgia, as a financial institution within the Lion Finance Group, became the first company from Georgia to be included in the London Stock Exchange’s Top 100. The Bank is listed alongside global companies such as HSBC, BP, Unilever, ROLLS-ROYCE, SHELL, BARCLAYS and others.Lion Finance Group officially joined the index on March 20, 2026, after the stock exchange closed, and the change officially entered into force on March 23.For information, Lion Finance Group is a banking group listed on the London Stock Exchange, which unites leading, customer-focused and digitally accessible universal banks, including Bank of Georgia and Ameriabank, which operates in the Armenian market and is the country's largest financial institution.It is worth noting that the group was first listed on the London Stock Exchange in 2006, and became a member of the FTSE 250 index in 2012.

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The company’s researchers explain that when determining the optimal loan structure, it is first necessary to determine in which currency the business is hedged. According to them, hedging means that “exchange rate changes do not have a material impact on the company’s financial indicators.” In this context, TBC Capital emphasizes that hedging indicators vary by sector: while car prices are pegged to foreign currencies, residential real estate prices, contrary to the dominant view, are “largely denominated in GEL.”Key factors in currency strategy: A one-page summary prepared by the investment company provides several practical recommendations for businesses: Multicurrency basket: According to the study, the dollar-euro-yuan basket is “40% equivalent to real GEL, with much lower costs.” Business cyclicality: The researchers believe that “in contrast to current practice, the share of GEL should be higher in cyclical sectors.” Interest rates: Despite its importance, the differential should not be “the only and overly important factor, as is often the case.” Profitability: A properly hedged structure allows for more borrowing “even without a stress scenario.” Global context and forecasts:The company’s researchers focus on assessing the equilibrium levels of the GEL and EUR/USD. The publication raises the question of whether it is appropriate to borrow in a currency that strengthens during stressful episodes and how relevant the so-called “dollar smile” is today. It also analyzes the impact of the escalation in the Middle East on the dollar as a “strengthening of the status of a safe asset.”TBC Capital notes that the framework, the idea of ​​which was published back in 2019, is becoming increasingly widespread. “Work continues on individual, company-specific approaches,” the investment company says, and partners are ready for further cooperation.

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