According to the NBG’s data for August 2025, banks have healthy capital and liquidity ratios.As of the NBG’s data, in August 2025, annual growth in loans, excluding the effect of the exchange rate, amounted to 14.8%, which the regulator largely attributes to the growth in business loans.According to the National Bank’s second-quarter data, the ratio of loans to gross domestic product remains below the long-term trend, and the ratio gap is negative.As of the analysts, the strong economic growth in the first half of 2025 slowed down the pace of closing the loan-to-GDP gap, although the loan-to-GDP ratio continues to gradually approach its long-term level. Accordingly, there is no need to change the cyclical component of the countercyclical capital buffer at the current stage. In addition, commercial banks will continue to gradually accumulate the neutral component of the countercyclical capital buffer.

1759918533

The observation comes from the World Bank’s newly released regional economic review, focusing on jobs and prosperity across emerging markets in Europe and Central Asia.According to the report, nuclear energy may also complement other renewable sources in certain countries, helping to diversify energy production and create more stable employment. The World Bank notes that such a differentiated energy approach can ensure that investments directly translate into productive jobs.The study also emphasizes the need for coal transition strategies in Central and Eastern Europe, underscoring the importance of supporting displaced workers and expanding renewable infrastructure — a shift that could create new employment opportunities across the region.In Central Asia, the report highlights growing energy demand driven by population growth, calling for the harnessing of hydropower and solar resources, while natural gas continues to play a transitional role in countries such as Kazakhstan and Turkmenistan.“The region’s developing countries need to implement bold reforms to translate sustainability into significant growth in productivity, output, and jobs, in line with changing demographics and natural advantages,” said Antonella Bassani, World Bank Vice President for Europe and Central Asia.Bassani added that it is essential for countries to strengthen the private sector, improve education, and enhance international and regional connectivity, while attracting more private investment.“The challenge for the region,” she said, “is to increase job opportunities and transform low-skilled jobs into high-quality employment.”

1759918359

“According to the World Bank, Armenia’s economy is expected to grow by 5.2 percent this year, an upward revision of 1.2 percent. In Azerbaijan, the International Monetary Fund projects economic growth of up to 1.9 percent, while the World Bank has downgraded its forecast for the country by 0.7 percent.It is noteworthy that, in recent weeks, not only the World Bank but also the European Bank for Reconstruction and Development and the Asian Development Bank have raised Georgia’s 2025 economic growth forecast to 7 percent. Meanwhile, the International Monetary Fund projects an even higher figure of 7.2 percent for Georgia,” World Bank’s report reads.According to WB, remittance growth in the South Caucasus remains resilient as well, even as money transfers from Russia are normalizing following the surge in 2022–23.Money transfers rose by 9.2 percent year on-year during January-July in Armenia and 5 percent in Georgia, as a drop in transfers from Russia, down nearly 30 percent in Georgia’s case, was offset by higher remittances from the European Union and the United States.In the South Caucasus, growth is projected to slow to just above 3 percent, reflecting weaker expansion in Azerbaijan amid declining oil production, and a normalization of growth in Armenia and Georgia.

1759918216

The central bank has steadily increased its reserves throughout the year, adding a total of USD 1.5 billion in net purchases between January and August. The most significant growth was recorded in July, when reserves expanded by USD 416.9 million.Gold continues to play a notable role in Georgia’s reserve structure, accounting for 16.2% (USD 877.8 million) of total reserves. The NBG noted that the value of monetary gold has grown by USD 377.8 million since its acquisition, underscoring the effectiveness of the bank’s diversification strategy.Among South Caucasus countries, Azerbaijan leads with more than USD 11 billion in reserves as of August, followed by Georgia with USD 5.4 billion and Armenia with USD 4.2 billion. The NBG plans to publish updated data on international reserves on November 5, 2025.

1759837102

The greatest dissatisfaction is from the clients of consumer loans. Credit cards are also expressed (56). Mortgages (49) and installment loans (49) are represented by an equal number of complaints. However, repair loans are the most unpretentious (0).8 complaints are made against car loans and pawnshops. The share of these products in the loan portfolio of banks is insignificant.

1759836859

Interest payments on the AZN 50 million (€25 million) one-year floating rate note reference the AZIR (the Azerbaijan Interbank Rate) index. The bond was lead-managed by ABB-İnvest İnvestment Company and Unicapital İnvestment Company. An application has been made for the bond to be listed on the Baku Stock Exchange.The proceeds of the successful issuance will support the EBRD’s AZN lending in Azerbaijan.AZIR was established by the Central Bank of Azerbaijan in May 2023 and modified in May 2025 with technical assistance from the EBRD, to provide a new money-market benchmark reflecting the average daily rate for one-day unsecured interbank transactions (often referred to as the “risk-free rate” or “RFR”). It supports effective liquidity management by Azerbaijan’s domestic banking sector and provides the central bank with an important indicator for monitoring monetary policy transmission.AZIR simplifies the calculation of interest payments for financial instruments and its introduction follows the launch of RFRs in other countries, including in the United Kingdom and the United States of America.The policy dialogue that culminated with this issuance began several years ago. Discussions highlighted the regulatory changes needed to strengthen Azerbaijan’s domestic capital market. This milestone launch was made possible by strong backing from the Central Bank of Azerbaijan and the close involvement of the Baku Stock Exchange and the National Depository Centre.The EBRD is the largest institutional investor in Azerbaijan. The Bank has invested over €3.6 billion in Azerbaijan across 200 projects in sectors including renewables, connectivity and sustainable infrastructure.

1759750499

Lion Finance Group (BGEO LN) shares closed at GBP 76.05/share (+2.29% w/w and +8.10% m/m). More than 226k shares traded in the range of GBP 74.00 - 77.30/share. Average daily traded volume was 64k in the last 4 weeks. The volume of BGEO shares traded was at 0.51% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 44.95/share (+2.51% w/w and +3.81% m/m). More than 462k shares changed hands in the range of GBP 43.80 - 46.30/share. Average daily traded volume was 112k in the last 4 weeks. The volume of TBCG shares traded was at 0.82% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 23.70/share (+0.85% w/w and +0.64% m/m). More than 264k shares traded in the range of GBP 23.10 - 24.60/share. Average daily traded volume was 58k in the last 4 weeks. The volume of CGEO shares traded was at 0.67% of its capitalization. 

1759750306

A GEL 2,000 fine was levied for submitting incorrect information to the NBG during registration verification as a loan issuer. The largest portion of the fine, GEL 15,000, was related to serious flaws in the company’s software system, which lacked mechanisms to detect suspicious or unusual transactions and identify related parties.Additionally, Flexi Capital was fined GEL 2,000 for submitting incorrect information in two separate reports concerning money laundering and terrorist financing risks, with each instance carrying a GEL 1,000 penalty. The NBG emphasized that these deficiencies represent significant shortcomings in the prevention of illicit financial activities.Registered in 2023, Flexi Capital LLC is owned by Shalva Jalabadze (90%) and Guram Torotadze (10%). The fines were imposed under the AML/CFT Supervision Rule, approved by the Georgian government in 2018, which requires financial institutions to monitor and report risks related to money laundering and terrorist financing.

1759750232

As a result of the transaction, the total voting rights of FIL Limited increased from 3,385,092 shares to 3,395,861 shares. Of this, 2,804,048 (previously - 2,818,956) are indirect voting rights, through companies under its control, and 591,813 (previously - 566,136) are voting rights through the CFD mechanism.It should be noted that a CFD is a derivative financial instrument that allows an investor to benefit from changes in the price of a share without directly owning it.

1759399731

The project aims to enhance RAI's operating efficiency by replacing outdated, energy-consuming equipment with state-of-the-art, energy-efficient technology, as well as optimizing natural gas and electricity consumption. The plant upgrades will also help improve the quality of fertilizers produced. The resulting improved quality of fertilizers will support agriculture in Georgia and regional countries, including Armenia, Azerbaijan and other ADB DMCs.The project will finance the following for RAI: (i) capital expenditures (capex) to modernize and refurbish an existing high-density ammonium nitrate (HDAN) production facility, and to support energy-efficient capex; and (ii) working capital. HDAN is a nitrogen-rich fertilizer used to promote vigorous plant growth and improve crop yields. The accompanying TA will support sustainable inclusive farming practices to improve climate resilience and productivity of farmers, including female farmers. It will also improve access to fertilizers, build farmers' functional financial literacy, and encourage the efficient use of fertilizers to preserve soil health.To remind, at the end of July, Rustavi Azot was also granted a loan of $65 million by the European Bank for Reconstruction and Development (EBRD) to build an ammonium nitrate plant. The funds are also intended to improve the energy efficiency of the existing facility.Rustavi Azot is one of the largest fertilizer and industrial chemical companies in Georgia. It has an annual production capacity of 550,000 tons of ammonium nitrate and serves customers in the region. The loan sponsor (project implementer) is RAI's parent company Excelus Holdings LLC, which in turn is a subsidiary of Indorama Corporation Pte Ltd. On January 10, 2023, Excelus Holdings LLC acquired a 100% stake in Rustavi Azot JSC.

1759399597