Georgia's foreign trade: imports are stable, exports are growing

According to the American Association of Wine Economics (AAWE), the value of wine imported from Georgia to Canada in 2025 increased from $1.23 million to $1.58 million (+$0.35 million) compared to 2024.The changes in the market are related to the blockade imposed by Canada on American products. In 2024-2025, wine imports from the US fell from $431.02 million to $99.94 million, a dramatic 76.8% decrease (-$331.08 million).The European giants benefited the most from the substitution of American products: France: Imports increased by 12.7% to $601.13 million (+$67.90 million). Italy: The increase was 6.6% and the volume increased to $509.83 million (+$31.48 million). Spain: Imports increased by 10.2% ($148.18 million). Significant increases were recorded by Australia (+18.4%), New Zealand (+16.6%) and Chile (+24.1%).Despite increased exports from individual countries, including Georgia, the US wine deficit could not be fully filled. Total global imports of Canadian wine fell by 7% to $1.93 billion, meaning that almost half of the US deficit was simply not replaced in the market.

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Ahead of the meeting of foreign ministers of the EU member states, Kallas answered a question from "Euroscope" and noted that European circles are actively discussing how to help Georgian citizens without losing hope for a European future.According to Kallas, discussions have taken place on how best to achieve this so that the population does not lose faith in Europe.“The Black Sea strategy we have in place already from last year, now it’s the implementation of this. The different countries around the Black Sea are, of course, an important part of this. Now, we are also struggling with Georgia, as we don’t really have connections with the government. We don’t want to support the government. We want to support the people of Georgia. We have also held discussions on how we can best deliver this support, ensuring that the public does not lose hope in Europe,” Kallas stated.For context, alongside the situations in Ukraine and the Middle East, diplomats at today’s Council meeting in Brussels will discuss the European Union’s Strategic Approach toward the Black Sea Region.

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Lion Finance Group (BGEO LN) shares closed at GBP 115.90/share (- 1.36% w/w and +11.76% m/m). More than 192k shares traded in the range of GBP 112.80 - 118.20/share. Average daily traded volume was 88k in the last 4 weeks. The volume of BGEO shares traded was at 0.45% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 46.62/share (+1.17% w/w and +10.16% m/m). More than 246k shares changed hands in the range of GBP 44.58 - 46.82/share. Average daily traded volume was 68k in the last 4 weeks. The volume of TBCG shares traded was at 0.44% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 43.00/share (-4.66% w/w and +7.63% m/m). More than 144k shares traded in the range of GBP 41.45 - 45.30/share. Average daily traded volume was 45k in the last 4 weeks. The volume of CGEO shares traded was at 0.42% of its capitalization.  

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As you know, the regulator has reduced the reserve requirement ratio for banks on funds raised in foreign currency from 25% to 20% since June.In June, refinancing loans decreased by 105 million, and the balance as of July 1 did not exceed 395.5 million, while one-month loans amounted to 503 million.

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Of these, it holds 4.95% directly (5.07% before the reduction) and 1.16% indirectly (1.21% before the reduction). The indirect holding structure is represented by the following financial instruments - stock lending mechanism - 0.4%, and 1.12% - contracts for difference (CFDs).As a result, the total number of voting shares held by BlackRock is 3,413,047 units.Recall that the American giant acquired 5.02% of TBC PLC shares in May last year, partly directly and partly in the form of financial instruments.Namely, 4.02% was acquired directly, and an additional 1% was acquired through financial instruments - including contracts for difference (CFDs) and a share lending mechanism. At that time, BlackRock's total voting shares amounted to 2,827,737.A contract for difference (CFD) is a financial instrument that allows an investor to benefit from fluctuations in the price of an asset - without actually owning the share. The investor enters into a contract to cover the price difference based on the change in value.For example, if BlackRock bought a CFD (contract for difference) on TBC PLC shares in the hope that their price would rise, and if the price did rise, BlackRock would make a profit on the price difference - although it would not become a direct owner of the shares and would not be entitled to receive dividends. However, through the CFD it may have the right to temporarily exercise voting rights, which would help to strengthen its position in TBC. The same principle applies under the same conditions if the price fell.As for the share lending mechanism, this means that an investor temporarily receives shares from another owner (often in exchange for some compensation), which gives him temporary voting rights, but the legal right to ownership still belongs to the lender.With the securities lending mechanism, BlackRock temporarily "pledges" shares from other owners who do not actively use these shares. This mechanism allows BlackRock to have voting rights and benefit from the positions of other shareholders, although the legal ownership of the shares remains with the lender.Typically, this mechanism is used for several purposes. In particular, when an investor or shareholder wants to influence the decisions of the company, for example, at the general meeting. Also, this tool facilitates the implementation of various strategies, for example, short positions or hedging. Buying physical shares is much more expensive (multiple fees, transaction complexity), and this allows the borrower to better manage long-term or short-term strategies.Ultimately, both mechanisms allow BlackRock to expand its influence in TBC PLC without having full ownership.For your information, BlackRock is the world's largest asset management company, through which trillions of dollars of capital are returned to global markets. The company plays an important role both as an institutional investor and as a partner for large corporations.The transaction closed in London at the end of June 2026.

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The Company also announces an extension to its current US$ 50 million share buyback and cancellation programme (of which US$ 10 million is remaining) by an additional US$ 10 million, which will be put in place immediately.Together, these transactions will fully complete GCAP's GEL 700 million capital return programme significantly ahead of schedule, representing one of the largest capital return initiatives undertaken by the Company. The capital return programme will be completed through a combination of US$ 150 million bond redemptions and a US$ 110 million share buyback and cancellation programme. Originally announced in August 2025, the programme was initially scheduled to be completed by the end of 2027.Irakli Gilauri, Chairman and CEO, commented: "I am pleased to see GCAP once again demonstrating its disciplined approach to capital allocation. With a further strengthened balance sheet, we remain firmly focused on the execution of our strategic priorities and on delivering sustainable long-term value for our shareholders. I am delighted that we have made sufficient progress recently to enable us to complete our GEL 700 million capital return programme a year and a half early. Following this completion and taking into account the expected strong free cash flow generation over the next few years, the Board will consider an updated capital management programme to incorporate a combination of business investments as well as significant future capital return initiatives. A further announcement will be made with the Group's half-yearly results in August 2026."Under the share buyback and cancellation programme, the shares will be purchased in the open market and the cancellation of the treasury shares will be executed on a monthly basis.In accordance with the authority granted by the shareholders at the 2026 annual general meeting ("AGM"), the maximum number of shares that may be repurchased is 5,049,543. The Programme is conducted within certain pre-set parameters, and in accordance with the general authority to repurchase shares granted at the 2026 AGM and the provisions of the Market Abuse Regulation 596/2014/EU and of the Commission Delegated Regulation (EU) 2016/1052 (as they form part of UK domestic law).The Company has appointed Numis Securities Limited ("Deutsche Numis") to manage an irrevocable, non-discretionary share buyback programme until the end of the Programme. During closed periods the Company and its directors have no power to invoke any changes to the Programme and it is being executed at the sole discretion of Deutsche Numis.

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The new report projects ADB member countries to grow by 4.9% in 2026, down 0.2 percentage points from its April forecast. The bank attributes the decline to ongoing conflicts in the Middle East, disruptions in energy markets and inflationary risks from rising fuel prices. As for the following year, 2027, the global growth forecast remains unchanged at 5.1%, which indicates a gradual weakening of this pressure.In the Caucasus and Central Asia region, the economy is forecast to grow by 3.8% in 2026 and 4.2% in 2027. The deterioration in regional indicators occurred mainly at the expense of several neighboring countries: Armenia: Growth forecast reduced from 5.5% to 5%, which is related to new trade restrictions imposed by Russia. Turkey: Forecast reduced from 3.6% to 3.1% due to high fuel and fertilizer prices. Turkmenistan: Expectations decreased to 6.3%, as the use of alternative trade routes bypassing Iran increased transportation costs. For other countries in the region, like Georgia, the ADB left its expectations unchanged. The economic growth forecast for Azerbaijan is still 2%, for Kazakhstan - 4.8%, and for Uzbekistan - 6.7%.Although the growth rate of Georgia's GDP remains stable, the bank revised its inflation forecast for the country, increasing the figure from 3.8% estimated in April to 4.9%.Among the leading economies in Asia, the bank reduced its growth expectation for India from 6.9% to 6.6%, while leaving the forecasts for China (4.6%) and Indonesia (5.2%) unchanged.

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The conference focused on the practical application of Georgian Government Bond Indices and the prospects for developing index-based investment products.The conference followed a significant milestone achieved in February 2026, when, for the first time in history, seven Georgian Government Bond Indices were published with the support of the NBG. Developed by the Intercontinental Exchange (ICE), these indices became available through both Bloomberg (Bloomberg IND) and the ICE Index Portal (indices.ice.com).The conference was opened by Ekaterine Mikabadze, First Vice Governor of the National Bank of Georgia. In her welcoming remarks, she emphasized the importance of capital market development, the practical significance of market indices, and their role in the development of investment products.According to Ekaterine Mikabadze, the publication of these indices marks a major step forward in the evolution of Georgia's financial market."Over the past few years, Georgia has made significant progress. Today, we have a well-developed government securities market, robust market infrastructure, a Delivery Versus Payment (DVP) settlement system, and a modern regulatory framework for investment funds and asset managers. In addition, the funded pension system is becoming an increasingly important long-term investor in the local economy. The ICE Georgian Government Bond Indices add a fundamental building block to this ecosystem. They serve as a globally recognized benchmark and cover the GEL-denominated sovereign yield curve with maturities of up to 10 years. Using the ICE indices enables portfolio management based on the risk-return characteristics of treasury bonds, facilitates the development of tailored investment mandates, and ultimately supports the creation of index-linked investment products tied to the Georgian government bond market," noted Ekaterine Mikabadze.During the conference, representatives of the NBG's Financial Markets Department and Securities Market Supervision Department delivered presentations on the strategic vision for the development of Georgia's financial market, as well as the regulatory and tax framework governing investment funds.Panel discussions focused on the practical steps required to establish index-based investment funds in Georgia, international best practices in ETF development, and ways to strengthen the investment market ecosystem and further develop the supporting financial infrastructure.The conference brought together representatives of the Intercontinental Exchange (ICE), as well as executives and professionals from local and international financial institutions, asset management companies, investment fund managers, and the banking sector.On the second day, the conference continued with bilateral meetings between local financial market participants and ICE representatives.

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