Georgia launches transitional electricity market model with future ref...

According to GNERC, under the new model, participants can engage in day-ahead and hourly electricity trading on daily markets, however with certain restrictions. Importers, exporters, and wholesale suppliers are currently restricted from participating, while large consumers, suppliers, and system operators can only purchase electricity. Deregulated producers are allowed to sell electricity, aiming to manage risks effectively during this transition period.The Georgian government expects that these changes will enhance competition, liquidity, and transparency in the energy market. This, in turn, is anticipated to lead to more efficient use of energy resources, cost-reflective pricing, and ultimately, lower electricity prices over the long term.Currently, the Energy Exchange of Georgia has five registered participants, with more potential participants closely monitoring developments. However, initial trading volumes have not yet met expectations, prompting ongoing evaluation and adjustments to the transitional model to encourage broader participation.


Price increase of transit through the Turkish straits also reflects in...

GBC has approached other transport companies about possible changes in freight charges, however, they have not commented on the matter.The mentioned decision was taken by the Ministry of Transport of Turkey.It is mentioned in the agency's document that the tariff increase was planned. Transport Minister Abdulkadir Uraloglu previously announced that the revision of the fee was based on the decree of President Recep Tayyip Erdogan on October 7, 2022.According to the Montreux Convention, signed in 1936, which regulates navigation in the Bosphorus and Dardanelles Straits, fees for the non-stop transit of merchant ships are imposed for medical control, lighthouses and the evacuation of ships. Since 1983, the tax has been based on a gold franc and has been $0.8 per net tonnage. Starting in 2022, this rule was changed and the rate increased to $4.08.


Growth Rate Of Electricity Generation Is Ahead Of The Consumption Incr...

In the balancing electricity market, the cost of one kilowatt-hour of electricity equaled 4.44 US cents, which is an annual increase of 35%. On the other hand, in May of this year, compared to April, the price of electricity in the balance market decreased by 22% per month.In May of this year, 319 GW/h of electricity was exported from Georgia, Turkey is still the main market.


The Weighted Average Price Of Newly-Built Flats In Batumi Up By 5% - R...

In May 2024, the number of transactions of newly-built flats in Batumi has decreased by 8% year over year, while a 23% YoY decrease rate has been observed in the case of old flats.As of May 2024 in Tbilisi, the weighted average price of old flats has decreased by 1% in the city centre, while in the wide centre and suburbs 5% and 11% growth was witnessed.In May 2024 the weighted average price of newly-built flats in Batumi increased by 5% equaling USD 1,090 per sq m, while the figure for old flats recorded a 1% decrease to USD 724 per sq m.


In Tbilisi the number of transactions of residential flats down by 10%...

As of May 2024 in Tbilisi the weighted average price of old flats has decreased by 1% in the city centre, while in the wide centre and suburbs 5% and 11% growth was witnessed.In May 2024 the number of transactions in new projects decreased by 4%. While the figure for old flats features a 22% decrease compared to May 2023.As of May 2024 the weighted average price of newly-built flats in Tbilisi has decreased by 0.5% in the city centre, while the figure has increased by 8% and 14% in the wide centre and suburbs.As of April 2024 in Tbilisi the weighted average price of old flats has increased by 8% in the suburbs, while in the wide centre and city centre 6% and 9% growth was witnessed.In April 2024, in Tbilisi the number of transactions of residential flats amounted to 3,355 units, reflecting 26% YoY increase. Market size increased by 32% standing at USD 217 millions.


"Georgian Credit" Has Increased Its Agricultural Loans

"Georgian Credit", which is one of the few exceptions among the 34 MFOs operating in the market (Crystal, MBC, Lazika...) that lends to real businesses, has almost doubled its income from pawnshops.However, withdrawals from pawn loans do not exceed 0.5% of total interest income. More than half, 58% - 643 090 GEL, are the revenues received from lending to the agricultural sector (Q1/2023 -  632 040 GEL).In addition, in MFO's asset, the value of owned property has increased. As of Q1/2024, 2.1 million GEL of immovable-movable property is left for the borrower's unpaid debt (Q1/2023 - GEL2,478,810). It is much higher than the rate of large MFO.


TBC Bank paid GEL 276 million in the budget in 2023

TBC Leasing paid GEL 22.3 million in the reporting year, while TBC Capital's contribution to the budget amounted to GEL 18.1 million, and the profit appears to have been paid to neither.Out of 12 subsidiary companies of the group operating in Georgia, only 7 paid profit tax in FY23.The budget contributions of the group companies were also in Uzbekistan, Azerbaijan and Great Britain, of which, the fast-growing TBC Bank Uz contributed GEL 9.11 million to the budget of Uzbekistan in the form of taxes.The tax paid by TBC PLC itself in Great Britain amounted to GEL 1.23 million.


TBC Attracted GEL 941 MLN From Donors in 2023

Eligible projects aim to improve access to finance for female and young entrepreneurs, MSMEs and start-ups, as well as to promote green investments in Georgia. TBC has always been avid supporter of the MSME segment, assisting through the provision of both financial and non-financial support, including facilitating access to capital, sharing knowledge and expertise, and developing loan products customised to the needs of individual businesses. The Bank acknowledges that sustainable development of MSME segment is critical, as they are the backbone of the Georgian economy, serving as its biggest employers, job creators and contributors to GDP. To ensure uninterrupted financing of MSMEs, in 2023 the Bank mobilised financial resources of more than GEL 242 mln from its long-standing partner financial institutions, supporting local MSMEs to expand their business activities and hire more employees.For instance, in cooperation with EIB, the Bank mobilised a loan portfolio guarantee programme in the amount of GEL 89.3 mln, with a special focus on regional entities, start-ups, and young and female entrepreneurs. The portfolio guarantee, with an 80% first loss risk sharing component, enhances TBC’s financing and risk-taking capacity and enables the Bank to finance underserved target groups. The guarantee program will be implemented in 2024 and will strengthen the competitiveness of local businesses, further contributing to the economic growth and job creation in Georgia. Green Lending Development remains one of the key pillars of the Bank’s ESG strategy. To intensify efforts towards green financing, TBC has successfully collaborated with partner organisations in 2023 and attracted green facilities of up to GEL 663 million (GEL 108 million in 2022). Mobilised green funds enable TBC to continue financing energy efficient, renewable energy and resource efficient projects and support customers in their sustainable transformation; Moreover, those green facilities are coupled with the technical assistance programmes, which provided support from energy-efficiency experts and consultants, who assisted TBC Bank in identifying green investment opportunities, assessing the technical potential of eligible investments, and cooperating directly with customers to help them with the green investment implementation process. In 2023, TBC also became the first EBRD partner bank in the region to commit to develop a Paris alignment transition plan and commit to progressively align TBC’s business practices with the Paris Agreement goal. TBC has always promoted female entrepreneurship and female participation in the economy through the provision of dedicated financial programmes. TBC believes that creating equal opportunities for women in business is not only a question of gender equality, but also an economic priority, as women entrepreneurs play a significant role in job creation and economic growth. TBC has renewed its commitment to supporting gender finance by attracting up to GEL 215.2 million (increased from GEL 54 million in 2022) in funds specifically for female borrowers, including loans from its long-term partners, EIB, PROPARCO and EBRD; EBRD program “Women in Business” (WIB) represents package of financing and portfolio guarantee, which enables TBC to further enhance financing to those borrowers, whose borrowing capacity might be hindered by shortage of collateral. Moreover, the program also contains a complementary advisory service framework that provides women-owned entities with mentoring, training, and networking opportunities that can help them transform and grow their businesses. An additional amount of gender-focused financial resources of up to GEL 161.36 million, which were provided by EIB and PROPARCO, are based on the 2X Challenge investment criteria, which are a global baseline standard for gender finance. These funds enable TBC Bank to finance not only women-owned and women-led businesses but also a wider spectrum of investments that support gender equality. Examples include businesses that provide products and services designed for women’s specific needs, companies that have a majority of women beneficiaries, and businesses that advance women in the workforce, with up to 50% share of women in staff composition and one “quality” indicator in place, such as policies and programmes that promote gender equality. The Bank’s funding strategy and successful collaboration with partner financial institutions have further reaffirmed TBC’s leadership position in the Georgian banking sector for green and sustainable lending and positively contributed.


Business sector turnover increased by 10.7% in 1Q24

The production value of the business sector is characterized by the increasing tendency. In the I quarter of 2024, its volume equaled to 17.9 billion GEL, which is year-on-year 12.6 percent more:In the I quarter of 2024, 69.4 percent of total turnover comes on large and 14.3 percent – on medium businesses while 16.4 percent is distributed to small business.A small difference is in case of total production value: 47.8 percent comes on large, 24.0 percent – on medium and 28.2 percent on small businesses.In I quarter of 2024, total purchases of goods and services carried out by enterprises equaled to 25.8 billion GEL (year-on-year 7.0 percent more), while the purchase goods and services for resale amounted 16.0 billion GEL (year-on-year 1.6 percent more).


Average Monthly Remuneration Of Employed Persons Is The Highest In Med...

As of the document, 44.3 percent of total number of persons employed comes on large, 19.5 percent – on medium and 36.1 percent - on small businesses. The total number of employees amounted 703.2 thousands (year-on-year 3.8 percent more).The total personnel costs of enterprises equaled to 4 269.1 million GEL (year-on-year 17.1 percent more). In the I quarter of 2024, average monthly remuneration of employed persons equaled to 1 985.4 GEL (year-on-year increase by 226.3 GEL) while remuneration of employed women made up 1 559.2 GEL (year-on-year increase by 163.7 GEL).Average monthly remuneration of employed persons by size of enterprises is as follows:• Large business – 2 110.3 GEL• Medium business – 2 385.0 GEL• Small business – 1 540.8 GEL