In June 2026, headline inflation in Georgia stood at 5.8 percent. Inflation above the target level is still primarily driven by higher energy prices. Amid the renewed escalation of geopolitical tensions in the Middle East, volatility in international oil prices has increased again. However, current market trends indicate that oil prices remain below the levels observed during the previous escalation. At the same time, the prolonged conflict has heightened the risk of indirect inflationary effects stemming from higher energy prices. The sticky inflation indicator, which better captures underlying inflationary dynamics and inflation expectations, has remained close to the target. Specifically, in June, core inflation (excluding food, energy, and tobacco) stood at 3.2 percent. However, service sector inflation accelerated to 4.1 percent, indicating that despite the moderate level of core inflation, the risks of strengthening second-round effects remain a noteworthy factor.According to the NBG's updated central scenario, energy prices are expected to remain a significant contributor to inflation this year. Consequently, average inflation is projected at 5.2 percent in 2026. From the second half of 2026 onwards, inflation is expected to decline gradually and converge to the 3 percent target over the medium term.Economic activity has remained resilient in the face of external shocks. In May 2026, based on the preliminary data, economic growth stood at 6.4 percent, while average growth for the first five months of the year reached 7.8 percent. Growth continues to be driven primarily by high-productivity, service-oriented sectors, which mitigates demand-side inflationary pressures. At the same time, in line with expectations, the adverse impact of the ongoing conflict in the Middle East on external demand has remained limited. Accordingly, under the updated central scenario, the forecast for Georgia's economic growth in 2026 remains unchanged at 6.5 percent.The geopolitical situation and its economic consequences remain one of the main risks shaping the outlook for the global economy. Against the backdrop of heightened uncertainty, in addition to the central scenario, the MPC considered both high-inflation and low-inflation risk scenarios.In the event of the realization of the high-inflation risk scenario, fundamental processes require a higher trajectory of the monetary policy rate than the central scenario. The high-inflation scenario assumes a more prolonged escalation of geopolitical tensions, resulting in a further increase in energy prices on international commodity markets. Higher energy prices will be reflected in higher domestic fuel prices and will also be transmitted to the prices of other goods and services through increased transportation and production costs. In addition, recent adverse weather conditions pose an additional risk of higher international food commodity prices. In the event of the realization of these risks, inflation would be higher compared to the central scenario.On the other hand, under the low-inflation risk scenario considered by the MPC, the realization of the risks would allow a faster normalization of monetary policy rate compared to the central scenario. In recent years, structural changes in the economy have increased the contribution of relatively high-productivity and less import-intensive sectors, which has strengthened Georgia’s external position. According to the central scenario, this trend is expected to normalize gradually, although there is a possibility that it could persist over the longer term. In such a scenario, on the one hand, higher long term potential growth would reduce demand-side inflationary pressures. On the other hand, a stronger external position and a lower sovereign risk premium would support a fundamental appreciation of the real effective exchange rate, further strengthening disinflationary impact. Furthermore, a rapid de-escalation of geopolitical tensions, leading to a faster decline in energy prices, would represent another key driver of the low-inflation scenario. As a result, headline inflation would converge to the target more rapidly than in the central scenario.Based on its assessment of the current macroeconomic environment, the updated scenarios, and the balance of risks, the MPC considered it appropriate at this stage to keep the monetary policy rate unchanged. However, given the elevated inflationary risks, the tightened monetary policy stance is expected to be maintained for an extended period. The NBG continues to closely monitor the transmission of external shocks to the Georgian economy and their impact. Should inflationary risks, including second-round effects and inflation expectations, intensify beyond current expectations, the NBG stands ready to tighten monetary policy further. The monetary policy response aims to ensure that, once the supply-side inflationary shock dissipates, inflation returns to the 3 percent target in a timely manner.The next meeting of the Monetary Policy Committee will be held on September 9, 2026.

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The meeting was also attended by Ekaterine Galdava, Vice Governor of the NBG, and Giorgi Edilashvili, Head of the International Relations Department.During the meeting, the parties discussed ongoing and planned initiatives related to the development of Georgia's payment system, consumer rights protection mechanisms, financial education initiatives, and the future prospects for cooperation between the National Bank of Georgia and Visa.Natia Turnava expressed her gratitude to Visa for its active support in developing the NBG's comparison platform for payment service fees and commercial bank deposit interest rates. Launched at the initiative of the NBG, the new platform enables consumers to compare the fees charged by various payment service providers, as well as the interest rates offered on commercial bank deposit products, helping them make informed financial decisions.The parties also discussed the Tbilisi Finance Summit, which will be held in Tbilisi for the second time on October 27–28 this year. As in the previous year, Visa is once again an active supporter of the summit.The meeting also covered ongoing and planned initiatives designed to expand access to innovative payment services across the country.According to NBG Governor Natia Turnava, close cooperation with the private sector and international partners is essential for the National Bank of Georgia to provide consumers with modern, secure, and innovative payment services.Visa has been operating in Georgia for more than 25 years and plays a significant role in the development of the country's payment ecosystem. As of June 2026, the number of active Visa cards in Georgia exceeded 1.9 million.

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The bonds were placed within the capital market support program of the Economic Development Corporation of Georgia, and they are planned to be admitted to trading on the Tbilisi Stock Exchange. Securities investors are natural persons. The coupon of the bonds denominated in US dollars was 7.5%, and the coupon of the euro tranche was set at 6.5%.Raised funds will be used to refinance existing bonds and finance future projects. With this transaction, the company significantly improved financing costs and, due to high interest, was able to attract additional resources.According to Otar Sharikadze, director of TBC Capital, the company is an active issuer on the capital market of Georgia, and taking into account this issue, it has placed bonds totaling more than $29 million and €8 million."I am glad that within the framework of cooperation we have already implemented the 4th and 5th issues. As a result, we are jointly continuing the development of the local debt capital market. This year, TBC Capital has already helped six companies to attract financial resources." In total, we placed ₾400 million worth of corporate bonds within 10 transactions, as a result of which we maintain our leading position and hold a 60% share in the local market," said Otar Sharikadze.Director of the Economic Development Corporation of Georgia, Irakli Gabriadze, emphasized that this is the second successful cooperation with "Empy Development" within the framework of the capital market support state program."When using the program for the first time, the company issued debut bonds, which is another visible example of the entry of new issuers into the capital market. I am glad that the capital market is becoming an effective tool for attracting financial resources for Georgian businesses. The corporation will actively continue to support similar initiatives in the future," said Irakli Gabriadze.According to the director of Empi Development, Papuna Katsitadze, the high confidence of investors and the success of previous issues allowed the company to return to the market with an even larger offer."It is particularly important that investors' interest in the current issue is still high. In addition, the existing investors also expressed their desire to participate in the new issue, which is another proof of high confidence in the company. "MP Development" has been developing consistently for 14 years, and it is these results that determine the growing confidence of the market," said Papuna Katsitadze.

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Lion Finance Group (BGEO LN) shares closed at GBP 117.00 per share, gaining 3.17% week-on-week and 4.09% month-on-month. More than 171,000 shares were traded during the week within a price range of GBP 111.90–117.60 per share. The average daily trading volume over the past four weeks stood at 45,000 shares, while the traded volume represented 0.40% of the company’s market capitalization.TBC Bank Group (TBCG LN) ended the week at GBP 47.62 per share, up 0.55% week-on-week and 5.87% month-on-month. Trading activity exceeded 295,000 shares, with transactions conducted in the GBP 46.44–48.72 per share range. The company’s average daily traded volume over the last four weeks was 58,000 shares, and weekly traded shares accounted for 0.53% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 41.70 per share, marking a 4.12% weekly increase and a 6.11% monthly gain. More than 200,000 shares changed hands during the period, trading between GBP 39.40 and GBP 42.05 per share. The average daily trading volume for the last four weeks was 39,000 shares, with traded volume representing 0.58% of the company’s market capitalization.

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According to the National Bank, JSC Telasi itself has not been included on the sanctions list and is a provider of critically important services, whose uninterrupted operation is essential for the population and the economy.“Taking into account the requirements of international sanctions, the National Bank of Georgia, within the scope of its competence, ensures that appropriate approaches are applied so that, on the one hand, sanctions requirements are complied with, while, on the other hand, the continuity of critically important services is taken into account.In addition, when assessing sanctions-related issues, specific circumstances are taken into consideration, including the nature and purpose of the operations to be carried out. Accordingly, banks will continue to service JSC Telasi in the national currency, Georgian Lari, in line with the requirements of the sanctions in force, NBG regulations, their own policies, and risk assessment approaches,” the National Bank states.

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“International currency reserves are an important guarantor of the country’s macroeconomic stability. Accordingly, the NBG is consistently focused on building up reserves, in line with the bank’s stated policy. Whenever market conditions allow, the National Bank increases the country’s international reserves.Specifically, in June, the NBG built up its currency reserves by USD 612.6 million through interventions carried out on the Bmatch platform. Meanwhile, total net purchases for January–June 2026 amounted to USD 2,078.4 million.The NBG’s currency interventions in 2026 break down as follows: January - net purchase via Bmatch of USD 86.6 million; February - net purchase via Bmatch of USD 429.3 million; March - net sale via Bmatch of USD 16.2 million; April - net purchase via Bmatch of USD 333.3 million; May - net purchase via Bmatch of USD 632.9 million; June - net purchase via Bmatch of USD 612.6 million. The National Bank of Georgia will publish updated data on its currency market operations on August 25, 2026,” the National Bank’s statement notes.

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The completion has followed the receipt of the required approval from the Committee for the Development of Competition and Protection of Consumer Rights of the Republic of Uzbekistan.For this acquisition, TBC Group formed a joint venture (JV) with Titan Investments, an international investment holding company backed by top-tier international institutional investors, family offices and sovereign wealth funds from the Middle East. The JV has acquired 100% of OLX UZ, with TBC Group owning 50% + 1 share and Titan Investments owning the remaining shareholding.OLX UZ is one of Uzbekistan's top 10 most visited websites, with over 5 million monthly active users and 2 million active listings across services, goods, vehicles and real estate, serving more than 17% of the country's active internet users.OLX UZ will continue to operate under the OLX brand and work as a stand-alone, open classifieds platform. Over time, TBC Uzbekistan plans to offer financial and payment services through OLX UZ, deepening engagement across consumer and business segments. This will in turn enable OLX UZ, which is already growing profitably, to further develop its own business."We're delighted to announce the completion of this acquisition, which represents continued execution on our strategy to diversify our business. It enables TBC to enter a new high growth vertical, bringing millions of new customers, allowing us to capture a greater share of customer attention and unlocking additional synergies that drive long-term customer loyalty and engagement. We will preserve what makes OLX unique and trusted - an open and independent platform - while creating new products and services for its users. We are pleased to partner with Titan Investments and leverage our combined expertise to drive further growth of OLX UZ”, - Nika Kurdiani, CEO of TBC Uzbekistan, commented.The JV between TBC Group and Titan Investments brings a unique combination of expertise in building and growing digital businesses. It allows the Group to leverage Titan's expertise in investing in and scaling high growth digital classifieds, while enabling TBC Uzbekistan to focus on integrating digital banking products into OLX UZ and developing new products together with OLX UZ.

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“According to the information available to us, as a result of the investigation conducted by the relevant investigative service against the aforementioned companies, none of the sanctioned companies had their area of ​​activity in Georgia. In addition, additional investigative actions have been initiated against them.We note here that the regulatory framework of the National Bank of Georgia imposes strict requirements for market entry and operation and represents an important filter for entities involved in illegal activities.In addition, the regulatory framework for virtual asset service providers developed by the National Bank is in line with the standards of the International Task Force on Combating Money Laundering (FATF) and best international practices, as confirmed by the 2024 assessment of the Committee of Experts of the Council of Europe (Moneyval). According to the assessment, in relation to Recommendation 15 (which provides for compliance with the requirements for the introduction of new technologies and the regulation of the activities of virtual asset service providers (VASPs)), Georgia’s rating is "Largely compliant." Similar assessments have been made regarding this recommendation by, for example, the United Kingdom and France," the regulator's statement reads.

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The most satisfied shareholders are the shareholders of the Bank of Georgia Group. ROE for every 100 GEL invested is >31 GEL. TBC ratio is 23.5%. Liberty/Basis is almost equal within 15%.Return on capital >20% is considered optimal.

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According to the 6-month statistics of NBG, the total profit (of profitable banks) is 1.914 billion GEL (H1/2025 - 1.619 billion. +18.2% Y.Y).All banks are profitable, except for the sanctioned VTB (-14.9 million) and Silk (-13.8 million). Also at a loss are digital "Hash Bank" (-6.2 million) and "Paysera " (-1.2 million), the 3rd digital - "Pavebank" has a 6-month net profit of 5.6 million GEL.In total, there are 19 entities on the market, including 2 microbanks (Crystal and MBC).

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