Business Sector Turnover Reached GEL 62 BLN In 4Q24

As of March 1, the bank's loan portfolio is up to 136 million GEL (01.03.2024 – 65.3 million, + 109%Y,.Y).The volume of deposits has also increased, up to 152.6 million GEL. The share has increased by only 0.3 percentage points, up to 0.25% (L/Y- 0.22%).The loss has also grown by 2 million and for January-February, made up 3.3 million GEL (L/Y – 1.3 million).

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In January, loans issued in the national currency increased by 36 million lari, while foreign currency - by 423 million lari.The portfolio of resident legal entities is 28.7 billion lari, of which 64% is foreign currency.The retail portfolio of banks reaches 32 billion lari.As of February, the larization of total loans is 56.32%. In the reporting month, the coefficient decreased by 0.36 percentage points.The NBG is not planning to raise the limit of foreign currency lending to 500,000 lari yet, as it has only recently come into effect (since January).

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Starting today, March 26, the National Bank has initiated the sale of commemorative coins themed around Euro 2024. Symbolically, the coin release coincides with the date of the national team’s qualification for the UEFA European Championship 2024.The NBG has issued gold and silver collector’s coins with a 5 Georgian Lari nominal value (gold – with a 1,500-piece edition, silver – with a 10,000-piece edition) to mark the national team’s historic achievement and their participation in the UEFA 2024 European Championship.The coin design sketches were prepared by the Georgian Football Federation in collaboration with the National Bank (designer: Bacho Lagvilava), and the coins were manufactured by the Lithuanian Mint.The silver coin’s sales price is GEL 130, while the gold coin cost GEL 2,200.Sales of silver and gold coins will occur under the following conditions:Silver Coin Sales: Available from 10:00 a.m. on March 26, 2025:Via electronic platform tkt.ge for two days only (March 26-27)At Cash Center and Kvareli Money Museum cashiersGold Coin Sales: Available from 10:00 a.m. on March 28, 2025:Via electronic platform tkt.ge for one day only, until the end of that dayAt Cash Center and Kvareli Money Museum cashiersFrom March 31, 2025, if stock permits, coin sales will continue through Cash Center and Kvareli Money Museum cashiers, as well as the Money Museum’s online store.“To ensure maximum accessibility, we’ve established a limit – each user can purchase no more than one silver and one gold coin. This restriction applies across all official sales channels collectively, meaning the National Bank will issue only one coin per user during this period,” the statement of the National Bank reads.When purchasing coins via www.tkt.ge platform, the following will be added to the sales price:Delivery cost – GEL 7 for Tbilisi, GEL 20 for regionsInsurance cost – 0.4% of the coin’s sales priceWebsite service commission – GEL 10 for silver coins, GEL 82 for gold coinsIf a single user attempts to purchase more than one coin unit on the tkt.ge website, all orders for more than one coin will be cancelled, and the user will only be refunded the direct cost of the coin, transportation, and insurance.The website service commission is non-refundable.

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According to the Georgian Parliament, during the visit, Nikoloz Samkharadze and the delegation met with several Serbian officials, including the Vice-Speaker of the Serbian Parliament, Chairwoman of the Foreign Affairs Committee Marina Ragush, and members of her committee, as well as Vice-Speaker Elvira Kovac, who chairs the European Integration Committee.The meetings focused on the friendly relations between Georgia and Serbia and explored various areas of cooperation. Both sides emphasized the importance of advancing diplomatic relations, particularly, to establish full-fledged embassies in both countries soon.Discussions also covered issues related to EU accession, the necessary reforms to achieve this goal, and the exchange of experiences. The parties welcomed the entry of the Serbian airline into the Georgian aviation market, which is set to commence regular flights on the Belgrade-Tbilisi route starting June 15.“Georgia and Serbia share numerous commonalities. First and foremost, we are both candidate countries for EU membership, and our foreign policy objective is to join the EU. It is important to highlight that both countries face challenges regarding territorial integrity and similar domestic political issues. We enjoy strong political relations and unconditionally support each other’s territorial integrity, which should foster closer ties. We hope that in the coming months, a Serbian embassy will be established in Tbilisi, while Georgia’s diplomatic mission in Serbia will transition into a full-fledged embassy. There is significant potential for growth in trade and tourism,” stated Nikoloz Samkharadze.The Chairman of the Foreign Relations Committee also extended an invitation to his Serbian counterparts for an official return visit to Tbilisi.During the visit, members of the Foreign Relations Committee engaged with representatives of Serbian delegations to the OSCE and the Parliamentary Assemblies of the Council of Europe, discussing cooperation between the two countries within the framework of these Parliamentary Assemblies. Meetings were also held with the Serbian Institute of International Politics and Economics analysts.The delegation includes Mariam Lashkhi, the First Deputy Chairman of the Foreign Relations Committee, and Irakli Mezurnishvili, a committee member.

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The warehouse real estate market in Georgia is largely unorganized and fragmented, dominated by numerous small-scale operators and lacking structured service providers and comprehensive third-party logistics (3PL) options. The estimated gross leasable area (GLA) of warehouse facilities is approximately 2.2 million SQM, with 33% available for lease and 67% owner-occupied.The tenant mix at warehouses includes diverse sectors such as fast-moving consumer goods (FMCG), apparel, electronics, pharmaceuticals, and beauty industries.Among the leasable warehouses, 68% are concentrated in Tbilisi, followed by Kutaisi (17%), Batumi (5%), and Poti (5%). The GLA of warehouses in Tbilisi is 393,369 SQM, primarily concentrated in Samgori (45%), Nadzaladevi (23%), and Isani (11%). The occupancy rate for Tbilisi warehouses is about 77%, potentially higher due to service contracts. Average rents range from $3 to $5 per SQM, excluding VAT and service fees, with Class A facilities seeing rates rise to $7 per SQM.In Kutaisi, the warehouse market features mainly traditional facilities, focusing on manufacturing, assembly, and storage, supported by the Kutaisi Free Industrial Zone (FIZ). Average rents here are between $2 and $2.5 per SQM, with an occupancy rate of 36%, likely understated due to service contracts.Poti serves as a vital logistics and industrial hub along the Black Sea coast, featuring a Free Industrial Zone (FIZ) and numerous terminals and transit companies that prioritize logistics services and ensure a fast cargo turnover rate over long-term lease agreements. Therefore, the average occupancy rate in Poti is around 21%, although actual utilization may be higher due to significant cargo volumes.Batumi accounts for 5% of the leasable warehouse market, with average rents ranging from $3 to $6 per SQM and an occupancy rate of 39%, which may also be underestimated. Rustavi’s warehouse market is characterized by small, unorganized players focused on car parking rather than dedicated logistics facilities, indicating opportunities for future growth in this underdeveloped area.In 2023, the estimated demand for warehousing capacity in terms of volume reached 38.6 million cubic meters. In 2024, improvements in trade and transit volumes led to an 11.6% increase in the need for warehousing space. Looking ahead, demand for warehousing capacity is projected to grow at a compound annual growth rate (CAGR) of 9% between 2025 and 2028, indicating a sustained upward trend. It is important to note that significant external uncertainties and global developments may result in global supply chain realignments and a redirection of Asia–Europe trade flows, thereby reshaping regional and local logistics dynamics.

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The case study, entitled “TBC Group: Future-Proofing a History of Success”, examines TBC’s impressive rise and will be used by IMD as a teaching material, providing a key template of how to successfully scale a tech-enabled financial services business across emerging markets.The study outlines how TBC charted a path to become the leading financial services player in Georgia, before embarking on its international expansion, quickly establishing a strong retail banking presence in Uzbekistan and becoming Central Asia’s leading digital banking ecosystem. IMD also details TBC’s international expansion strategy, which is central to driving the Group’s further growth. Having achieved a dominant market position in Georgia, TBC explored opportunities to leverage its expertise and bring best-in-class digital financial services to more populous, high-growth and underserved emerging markets. Uzbekistan was chosen as the first market for overseas expansion, with the Group entering the country in 2019, where it has since built and continues to scale the region’s leading digital banking ecosystem.TBC Uzbekistan consists of three high-growth fintech businesses, with the digital bank reaching profitability just 2 years after launch - a record time for global digital banks. It now boasts 18.4 million unique registered users (nearly half of Uzbekistan’s population), is doubling its loan book year on year and made $41 million in net profit for FY 2024. TBC Uzbekistan is already a material contributor to TBC Group’s results, and its share is set to rise further. "We are thrilled that IMD has taken a keen interest in TBC and that it has produced this comprehensive study of our journey from a local bank in Georgia to an international digital banking powerhouse. It is a privilege for us to play a role in putting businesses in Georgia and Uzbekistan, both often-overlooked markets, on the global agenda. As our journey continues, we remain committed to our strategy of seeking out new opportunities for growth, while delivering sustainable profitable returns for our shareholders. Through TBC's London Stock Exchange listing, we offer the global community a chance to invest in our story, which I hope inspires IMD participants. Meanwhile, we will continue shaping TBC's future, including by starting to explore a new and exciting market”, - Vakhtang Butskhrikidze, CEO of TBC Bank Group said,k

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“This is yet another lifeline from the outgoing German government aimed at the fading protests and the disappeared opposition. It appears to be a self-serving move by those forces that seem to be behind the street violence. With insufficient public support to block the streets, they are attempting to reignite the fading protests through such measures. Their main motivation appears to be leaving some form of ‘legacy’ for the new German government rather than seeking to harm bilateral relations.As for our expectations, we do not set any special ones. Our focus is clear: to foster bilateral and multilateral relationships based on shared interests. If there is genuine German interest, we can find common ground. We are committed to enhancing these relations and removing all possible barriers. We hope the new German government shares this motivation. If so, we will have many opportunities for collaboration, although the ultimate outcome will depend on their stance,” Makhashvili concluded.

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“Mamuka Khazaradze made it clear through his Facebook post that he would not attend the commission meeting today, nor at any point soon,” Tsulukiani stated.“Given his remarks, I propose we vote to submit his case to the Prosecutor’s Office. According to Article 349 of the Criminal Code, failing to comply with the commission’s requirements can result in criminal penalties, including imprisonment for up to one year.”Regarding Badri Japaridze, also a leader of Lelo, Tsulukiani revealed that he might have a more significant role in the Magniti LTD case but did not respond to calls from the commission’s secretariat.“I find it concerning that he chose not to answer, and I can’t assume that these two had coordinated their absences beforehand,” she added.In his Facebook post, Khazaradze referred to the “illegitimate parliament” and dismissed the meeting as a “circus show.”Today’s interim facts-finding commission meeting will address the Magniti LTD case. Businessman Jemal Leonidze has accused TBC Bank, Mamuka Khazaradze, Badri Japaridze, and former Defense Minister Davit Kezerashvili of seizing his property.

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