Economics

Georgian banks hold 750 million rubles of CIS citizens

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Tbilisi (GBC) – The National Bank of Georgia’s interactive statistics show that the current accounts of non-residents are 2.34 billion GEL as of September, and 92.5% of them are equivalent to 2.16 billion GEL in foreign currency.

Non-resident clients of banks withdrew up to 3 billion GEL from their accounts, mostly in USD. The equivalent of 284 million GEL comes from the withdrawals of Euros.

However, according to analysts, this does not mean releasing the entire resource into circulation. Citizens of foreign countries may withdraw part of it. And part of it was transferred to a term deposit account or another instrument.

As of 01.09.2024, the total amount on the accounts of citizens of other countries, including term and demand deposit accounts, is up to 10.3 billion GEL. Out of this, up to 2.3 billion is in GEL. 5.8 billion GEL (equivalent in USD) and 2.03 billion GEL (in Euros). 17.5 million GEL is denominated in Swiss Francs, and 25 million GEL in Russian Rubles (of which, 24.8 million GEL is in the accounts)

As of 01.08.2024, the equivalent of 34 million GEL was recorded in the accounts in Russian rubles. The most amount of rubles - 48.5 million GEL was deposited in the current, demand and term accounts in Georgian banks as of 01.08.2023.

It is announced that the share of CIS citizens has decreased. The liquidity requirement for banks has also been eased, to the old level of 40%.

Increased deposits of Russian citizens in the banking sector of Georgia became the basis for tightening the liquidity requirement for banks from 40% to 80%, as a sign of instability. Such inflows are unstable, and it is inappropriate to refer to the lending of resources attracted through the mentioned channel.

Up to 35% of Belarusians, 28% of Russians and 30%-32% of Ukrainians have been in Georgia for more than 1 year. According to the IMF standard, the resident status is suitable.

სიახლეები ამავე კატეგორიიდან

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In 2023, the adjusted hourly gender pay gap equaled 13.2%

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In 2023, the adjusted hourly gender pay gap equaled 13.2%

As of the document, compared to the previous year, the hourly gender pay gap decreased by 2.2 percentage points, while the monthly gender pay gap decreased by 2.1 percentage points. In 2023, the adjusted hourly gender wage gap in the industry was 12.3 percent, and in services – 13.2 percent.According to the occupation, the highest hourly gender pay gap was observed in Craft and related trades workers' positions (39.3%), while Plant and machine operators and assemblers (24.4%) held the second place.

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Lending to large businesses decreased by 35%

The spring trend of business lending activity has changed. In assessing the sustainability of lending, the NBG stated that the growth of lending was mainly at the expense of the increase in business financing.According to the NBG, the amount of loans issued to large businesses in August decreased to 1.099 billion GEL, while in July/June there were 1.7 billion-1.7 billion issued. Small business loans were also reduced in August, from 1.63 billion GEL to 1.48 billion GEL.The monthly activity of big business is almost halved, in foreign currency, from 662 million GEL to 354 million GEL. In August, the sector lent 736 million GEL (equivalent in foreign currency) to small and medium businesses (07/2024 – 790 million).As of September, the total portfolio of business loans amounts to 33.4 billion GEL. (Source: BRG)

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Money transfers from abroad down by 1%

95.8% of total money transfers from abroad came from 23 largest countries, with the volume of transfers from these countries each exceeding 1 million USD in September 2024.In September 2023, the share of these 23 courtiers constituted 95.3% of total volume of money transfers.Countries by remittances in September 2023:1. Italy - 50 million USD2. United States of America - 49 million USD3. Russian Federation - 36 million USD4. Germany – 26 million USD5. Greece - 25 million USD6. Israel – 21 million USD7. Kirgizstan – 9.2 million USD8. Turkey – 9 million USD9. Kazakhstan – 8.1 million USD10. Ireland – 5.9 million USD

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Shares of Georgian companies mostly rose in price on the LSE. It is a...

Bank of Georgia Group (BGEO LN) shares closed at GBP 37.80/share (+0.13% w/w and -14.48% m/m). More than 281k shares traded in the range of GBP 35.50 - 38.00/share. Average daily traded volume was 55k in the last 4 weeks. The volume of BGEO shares traded was at 0.62% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 25.30/share (- 6.47% w/w and -11.23% m/m). More than 286k shares changed hands in the range of GBP 24.70 - 27.05/share. Average daily traded volume was 58k in the last 4 weeks. The volume of TBCG shares traded was at 0.52% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 9.67/share (+3.31% w/w and -2.22% m/m). More than 422k shares traded in the range of GBP 9.02 - 9.73/share. Average daily traded volume was 81k in the last 4 weeks. The volume of CGEO shares traded was at 0.99% of its capitalization.

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How Much Was The Revenue of Enterprises Engaged In Financial Services?

As of the document, the largest part of the revenue (75.7 %) was generated from interest and other similar incomes, while revenue from commission fees reached 12.4% of the total, and the remaining 11.9% were other revenues.At the end of 2023, cash held by enterprises engaged in financial services amounted to 2.9 billion GEL. At the same time, fixed and non-produced assets balance sheet value reached 2.7 billion GEL.In 2023, average number of employees of enterprises engaged in financial services equaled 41.9 thousand, of which 64.0 percent were females.In 2023 insurance companies earned premium of 971.9 million GEL, of which 41.5 percent was attributable to medical (health) insurance, 12.5 percent – to property insurance, 9.0 percent – to life insurance, 7.4 percent – to motor third party liability, 1.4 percent – to accident insurance, and the rest (28.2 percent) was allocated to other types of insurance.In 2023, incurred claims incurred by insurance companies amounted to 645.9 million GEL, of which 49.5 percent was assigned to medical (health) insurance, 7.3 percent – to property insurance, 5.0 percent – to life insurance, 4.4 percent – to motor third party liability, 0.1 percent – to accident insurance, and the rest (33.7 percent) was allocated to other types of insurance.

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External Merchandise Trade Up By 3.7% In 1H24 Y-O-Y

As of the document, the value of export increased by 4.1% reaching USD 4 786.7 million, while the import increased by 3.6% and amounted to USD 11 992.3 million.The trade deficit equaled USD 7 205.6 million and its share in trade turnover constituted 42.9%.

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€44 Million of EU Funding Drives SMEs Growth and Innovation in Georgia

Over 39,000 SMEs in Georgia were successfully supported through 50 projects last year alone. The impact of these projects has been substantial: there was a notable 12.8% increase in turnover among the supported SMEs, which resulted in the creation of almost 37,000 new jobs. Additionally, these businesses generated an extra €200 million in income, showcasing the effectiveness of the initiative in stimulating economic growth.EU Support is Structured Around Three Main Pillars: Access to Finance: €2 million invested (52.9% of the total budget) to support concessionary loans, microfinancing, and financial literacy training for SMEs. Business Development Services: €9 million invested (24.8% of the budget) for direct advice, training, and the development of business clusters, fostering entrepreneurship and innovation. Business Enabling Environment: €7 million invested (22.2% of the budget) to promote regulatory reform, improve policymaking capacities, and encourage public-private dialogue, creating a more favorable business environment. Key Achievements in 2023: 39,072 Georgian SMEs benefitted from various forms of support, including consultancy services, access to finance, and capacity-building programs. 36,973 new jobs were created within EU-supported SMEs. 458 EU-supported SMEs started exporting their products, contributing to a 6.8% increase in overall exports. 17,275 SMEs received loans. 371 SMEs received grants. 4% of supported enterprises are owned or managed by women, advancing gender equity in business. A 26.5% increase in staff among EU-supported SMEs. "The European Union remains committed to the economic growth and competitiveness of Georgia. Under its Economic and Investment Plan, the EU's flagship project has already surpassed its target to support 80,000 SMEs. In 2021-2023, over 100,000 SMEs have benefited from EU support. We are delighted to see these results reflected in the EU4Business Report. In particular, that so many new jobs are being created through EU-supported enterprises and that over 40% are owned or managed by women, advancing gender equity in business and fostering economic and social inclusion. The EU's investment in Georgia's economic development is an investment in the country's future", – commented Nicholas Cendrowicz, Head of Cooperation of the European Union Delegation in Georgia.Through the EU4Business initiative, the European Union has been effectively supporting and empowering small and medium-sized enterprises in Georgia for years. The results speak for themselves. From 2021 to 2023: Over 100,000 SMEs were supported by the initiative; 77,000 new jobs were created; and an extra €550 million in income was generated. The EU's investment in Georgia's SMEs highlights its commitment to fostering economic growth, innovation, and inclusive development across all of Georgia.For more information see the full report or visit the website.For more information and stories please visit the EU4Georgia website.

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The Average Median Earnings Of Employees In Georgia Up By 19%

According to the document, in 2023, the median earnings is 29.9% lower than the average monthly earnings.According to the economic activity in 2023, the highest median earnings were observed in thefollowing fields:• Information and communication - 1 960 Gel;• Public administration and defence; compulsory social security - 1 878 Gel;• Construction - 1 810 Gel;• Mining and quarrying - 1 705 Gel;• Financial and insurance activities - 1 696 Gel.According to 2023 data, the median earnings are lower than the average monthly earnings in all sectors.

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Lending to large businesses decreased by 35%

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Georgian banks hold 750 million rubles of CIS citizens

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Kobakhidze said over GEL 2 billion ($730mln) would be allocated for the development of regions through the Municipal Development Fund while a special programme focused on infrastructure development in settlements across the occupation line separating the Russian-occupied regions from the rest of the country would receive an annual allocation of GEL 20 million ($7.29mln).“Under the rural support programme, a minimum of GEL 400 million ($145.73mln) will be allocated over the next four years. At least GEL 155 million ($56.47mln) will be allocated under the Mountain Fund [...] It is crucial to ensure that the benefits are evenly distributed across the country, reaching different regions. Investments will continue to be made in this regard”, Kobakhidze said.In environmental initiatives, the Government aims to implement modern early warning systems over the next four years and increase the area of protected areas in the country by an additional 100,000 hectares, the Prime Minister said.“Also, 15,000 hectares of forest will be restored and planted. In the last four years, we have increased the pace of reforestation by about five times compared to the previous government. It is not even worth comparing; the amount of forests restored and planted by them was so insignificant in our country”, he said.Kobakhidze also highlighted reduction in air pollution in major cities such as the capital city of Tbilisi and Rustavi, saying air pollution had decreased by 25 percent and 35 percent respectively over the past few years.The Prime Minister said GEL 200 million ($72.87mln) would be allocated for the municipal transport programme over the next four years.“This funding will be used to improve the transport infrastructure and services in municipalities and regions [...] The combined budget for all 68 municipalities totalled around GEL 1.3 billion ($470mln) in 2012, mainly allocated for administrative expenses. However, the budget for 2024 in the regions alone has already reached GEL 3.34 billion ($1.22bln), with a projected figure of GEL 4.59 billion ($1.67bln) for 2028”, he said.“As for Tbilisi, the budget of the capital city was only GEL 657 million ($239.36mln) in 2012. The budget has already exceeded GEL 2 billion ($730mln) in 2024, and the forecast for 2028 is GEL 2.25 billion ($820mln). This amount does not include projects financed from the central budget. Tbilisi City Hall has significant plans for expanding the metropolitan network, rehabilitating avenues, and more. Additional resources beyond the GEL 2.25 billion will be allocated from the central budget for these projects”, Kobakhidze added.The Prime Minister also said the budget of the western city of Kutaisi had been GEL 62 million ($22.59mln) in 2012, before increasing to GEL 195 million ($71.04mln) the following year. Government projections by 2028 put it at GEL 225 million ($81.97mln), he added.Budget for the central-eastern city of Rustavi had been GEL 49 million ($17.85mln) in 2012, he said, adding the figure was expected to rise to GEL 180 million ($65.58mln) by 2025 and reach GEL 210 million ($76.51mln) by 2028. The Black Sea port city of Poti had a budget of GEL 31 million ($11.29mln) in 2012, the PM noted, before adding the number was anticipated to surpass GEL 100 million ($36.43mln) next year and reach about GEL115 million ($41.90mln) by 2028.In public services, the Government head contrasted the number of 12 Public Service Halls across the country with the opening of 109 more venues since the year, with plans to open 12 more between 2024-2025 to complete the project of their expansion.“This will ensure that [Public Service Halls] are available throughout the country, and all municipalities have the necessary infrastructure. Additionally, the Mobile [Public Service Hall] project has been implemented to provide relevant services to even remote villages. The number of services offered in the [venues] has also doubled, which is crucial for our citizens”, Kobakhidze said.He also emphasised the importance of the initiative of systematic registration of land, calling it a “crucial” project and thanking the Ministry of Justice and Minister Rati Bregadze for initiating and implementing it.“Over the recent years, one and a half billion plots of land have been surveyed under this project, and one billion plots have already been registered. Additional funding will be allocated in the coming years to register 500,000 plots to their respective owners”, Kobakhidze said.Addressing the tourism sector, the Prime Minister said the country would attract eight million visitors this year and increase the number to 11 million by 2028.“Tourism is an important sector for our country’s economy, and we take pride in being known for our hospitality. The development of tourism not only has an economic impact, but also a cultural significance for us. We can be proud of the significant growth we have achieved in this area”, Kobakhidze said.“We had 4.7 million visitors in the country in 2012. This figure is expected to reach almost eight million by 2024. The number of visitors is projected to increase to 11 million by 2028. This shows a very positive growth trend in the number of visitors”, he added.He noted income from tourism was projected to increase from $1.4 billion in 2012 to $6.4 billion by 2028, calling it an “impressive” result.“Of course, these incomes will ultimately affect incomes and social status of our population”, Kobakhidze added.The Prime Minister further presented “impressive data” regarding accommodation facilities, including hotels and guest houses.“There were 777 hotels in our country with 23,000 places in 2012. The number of hotels is projected to increase to 2,363 with 108,000 places by 2024. This represents a 4.5-fold increase in the number of places in the hotel sector. The number of hotels is expected to reach 2,680 with 142,700 places by 2028, which is nearly six times the number in 2012”, he said.Kobakhidze revealed plans to support the growth of the industry through private investments of about GEL 1 billion ($360mln) in the hotel sector, as well as allocating over GEL 1 billion for the development of tourist infrastructure, including urban renewal projects.

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Parliamentary majority moves to reinitiate impeachment proceedings aga...

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