Finance

NBG to Regulate Cashless Currency Exchange Operations in Georgia

According to the NBG, the regulation outlines the conditions for registering currency exchange providers, the issuance of licenses, and the obligations operators must fulfill to offer non-cash exchange services.Importantly, the regulation will not affect existing currency exchange points that operate exclusively in cash. These entities may continue operating under the current framework. However, if they intend to add cashless exchange services, they will be required to comply with the new regulations and apply for a separate operating license.The NBG is accepting proposals and feedback on the draft regulation until June 27, 2025. Submissions must be sent electronically to Non-Banking@nbg.gov.ge. Only substantiated comments submitted in the prescribed format will be considered.This move marks another step in Georgia’s ongoing effort to modernize its financial infrastructure and align with international best practices in digital finance.

1750328411

NBG keeps Monetary Policy Rate unchanged at 8%

Inflation in Georgia remains close to the target level of 3%. In May 2025, the overall price level increased by 3.5% year-on-year, while core inflation, which excludes highly volatile items such as food, energy, and tobacco prices from the consumer basket, declined slightly to 2.0%. Notably, long-term inflation expectations remain stable. Service sector inflation, which tends to be stickier and reflects long-term inflation expectations, stood at 2.2% in May.Overall, upward pressures on inflation are primarily driven by food prices, partly reflecting developments in global food markets. On the other hand, deflation in imported goods, primarily driven by lower fuel prices year over year, serves to counterbalance rising food inflation.According to the NBG’s central scenario, as previously projected, inflation is expected to temporarily exceed the target in 2025, averaging 3.8 percent, driven by base effects and global tendencies. Over the medium term, it is expected to stabilize around the 3 percent target.Alongside stable inflation, economic activity remains robust. According to the preliminary data, average economic growth for the first four months of the year stood at 8.8%. As expected, the pace of economic growth is showing signs of gradually converging toward its long-term trend. Meanwhile, credit activity growth has aligned more closely with its equilibrium level.Global economic uncertainty remains elevated amid ongoing geopolitical tensions and persistent trade barriers. As a result, inflation is subject to considerable risks on both the upside and downside. Accordingly, the Monetary Policy Committee considered both high-inflation and low-inflation risk scenarios. On the one hand, military actions in the Middle East have led to an increase in oil prices.At the same time, risks of economic fragmentation at the international level have intensified. This, in turn, raises concerns over the deterioration of supply chains and the emergence of a globally inflationary environment. If these risks materialize and persist, a high-inflation scenario could unfold, one that would require a higher interest rate path than assumed under the central scenario.On the other hand, the Monetary Policy Committee has considered a low-inflation risk scenario, where the realization of fundamental factors would require a lower trajectory for the monetary policy rate compared to the central scenario. Specifically, amid ongoing uncertainty, the U.S. dollar index (DXY) remains weakened.At the same time, international food commodity prices have seen a moderate decline. If these tendencies persist, a strengthened exchange rate combined with stable international food commodity prices is expected to exert downward pressure on headline inflation through lower imported inflation.As a result of macroeconomic analysis and the assessment of existing risks, the Monetary Policy Committee has considered it optimal to adopt a cautious approach toward further normalizing the monetary policy rate, keeping it unchanged at 8%. Upcoming decisions on the monetary policy rate will depend on updated macroeconomic forecast scenarios and risk assessments.The NBG will use all available instruments to maintain price stability. This means keeping the overall price level increase close to the 3% target over the medium term.The next meeting of the Monetary Policy Committee will be held on July 30, 2025.

1750241361

LFG's dividend distribution was 100% approved at the AGM

The dividend distribution of 32,816,826 shares was supported by 100% of investors.Lion Finance Group PLC (the “Company”) disclosed in its Preliminary Results for Full Year 2024 that the Board of Directors intended to recommend for shareholder approval a final dividend for financial year 2024 of GEL 5.62 per ordinary share payable in Pounds Sterling at the prevailing rate.The Company confirms that the dividend will be put to shareholder approval at the AGM on 16 June 2025. If the final dividend of GEL 5.62 per ordinary share is approved by shareholders at the AGM, the following dividend timetable will apply:Ex-Dividend Date: 3 July 2025Record Date: 4 July 2025Currency Conversion Date: 4 July 2025Payment Date: 18 July 2025The National Bank of Georgia Georgian Lari/Pounds Sterling average exchange rate for the period 30 June to 4 July 2025 will be used as the exchange rate on the Currency Conversion Date.

1750239763

EDG issues bonds to cover previous issue

The Cascade Power Plant Management Company is issuing $10 million 2-year bonds (nominal value: $1,000). The loan bonds have no credit rating. They are green, unsecured, unsubordinated obligations.The issue was authorized by the decision of the Supervisory Board (Chairman Mindia Sabanadze, Director Giorgi Shukakidze) dated June 3, 2025.Key characteristics:Total Nominal Value – 10 million USD;Nominal Value - 1,000 USD;Issue Date – 22 June 2022;Maturity Date – 22 June 2025;Annual Coupon Rate – 8.5%;Maturity Date - 23.06.2027EDG's existing portfolio of assets includes 3 hydroelectric power plants.All of the Issuer’s power plants, except for Sashuala HPP, benefit from a long-term guaranteed power purchase agreement (“PPA”) with the Power Market Operator (ESCO), which results in predictable dollar-denominated cash flows, as the power purchase agreements are fixed in US dollars.The PPA allows the Company to sell electricity exclusively to ESCO for 8 months (September-April) at a maximum price of 6.00 US cents/kWh. The remaining 4 months are sold on the basis of direct contracts, in the local market and for export.The bond issue is planned to fully refinance the existing bonds (ISIN: GE2700604459). The interest rate on the bonds to be repaid was also 8.5%, the issue amount is TBC Capital. However, the group also cooperates with G&T.The securities will also be listed on the Georgian Stock Exchange.

1750167822

Salaries in the financial sector have increased by 22%

Salaries in the finance and insurance sector have increased by 22% annually, to 5.5 thousand GEL.There are up to 4.2 thousand employees in the information/communications sector (+5.2%y.y) and a specialist in professional/scientific/technical sectors receives up to 3,000 GEL per month (+11.3%Y.Y).The average salary of employees in the construction sector has increased by 10.8% annually, to 2,909 GEL.The average salary of a woman – GEL 1,744 still lags behind the average salary of a man – GEL 2,601, 1.5 times. However, the annual increase in women's salaries (+13.3%Y.Y) has outpaced that of men (+11%Y.Y).

1750167626

0.6% of the dynamic pension portfolio has been directed to America

There are only 4,821 citizens in the portfolio to date.The net nominal return for May itself was 2.42%, and the real return adjusted for inflation was 1.98%.In May, 48% of the total portfolio remains in Georgia, instead of 48.6% in April, when the portfolio size was GEL 39.1 million. The largest share of the local portfolio falls on certificates of deposit and term deposits - 40.2% (April - 39.5%).The fund invested 47.9% of its risky portfolio in global equities in May (-0.1pp m.m), while it held 4.2% in treasury bonds (+0.8pp m.m).In accordance with the law, a minimum of 40% and a maximum of 60% of the fund's high-risk assets are allowed to be invested in foreign currency-denominated assets and equity securities.

1750156950

Remittances from the US increased, while from Russia – decreased

As of the statistics published by NBG on Monday, the maximum share of remittances falls on the European Union countries, amounting to 44.1%, corresponding to $140.1 million. Among the European Union countries, it is worth noting the high share of Italy, Germany and Greece in total remittances, while the total annual growth rate was determined at 16%.In addition, the growth trend of remittances from the United States continues. In particular, an annual increase of 25.2% was recorded and the volume amounted to $59.1 million.Remittances from the Russian Federation are characterized by a decreasing trend. In particular, in May they decreased by 9.2% annually amounting to $43.7 million.In May 2025, $35.2 million (GEL 96.5 million) was sent abroad from Georgia, which is 16.8% more than the similar figure in May 2024 ($30.1 million).

1750156820

TBC to distribute up to £85 million in dividends

TBC Bank Group PLC ("TBC PLC") announces that the Georgian Lari to Pound Sterling exchange rate that will apply to the final dividend payment for 2024 will be 3.6965, being the average exchange rate of the National Bank of Georgia for the period of 9-13 June 2025 inclusive (5 days average).On 11 April 2025 (being the last business day prior to publication of this notice), the Company’s issued share capital comprised 56,211,873 ordinary shares carrying one vote each including ordinary shares held as treasury shares. As at such date, the Company held no ordinary shares as treasury shares. Therefore, the total number of voting rights in the Company as at 11 April 2025 is 56,211,873.Shareholders at the Annual General Meeting (AGM) approved by 100% of the votes cast the final dividend for the financial year ending 31 December 2024. The Group will pay the dividend on 11 July 2025 to shareholders who were registered on the Company's register of members as at 6 June 2025, London time.

1750156720

Shares of all three Georgian companies listed on the London Stock Exch...

Lion Finance Group (BGEO LN) shares closed at GBP 66.05/share (- 4.14% w/w and -1.56% m/m). More than 128k shares traded in the range of GBP 65.15 - 70.15/share. Average daily traded volume was 37k in the last 4 weeks. The volume of BGEO shares traded was at 0.29% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 44.75/share (- 0.78% w/w and -2.82% m/m). More than 296k shares changed hands in the range of GBP 44.10 - 45.65/share. Average daily traded volume was 55k in the last 4 weeks. The volume of TBCG shares traded was at 0.53% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 18.54/share (-3.24% w/w and -3.34% m/m). More than 230k shares traded in the range of GBP 18.36 - 19.38/share. Average daily traded volume was 40k in the last 4 weeks. The volume of CGEO shares traded was at 0.58% of its capitalization.

1750068893

Pension loan issuances decreased

The bank's customer service center (hotline) reported that the rate on pension loans is issued at an annual rate of 24-25%.It is also difficult to indicate the effective rate for consumer loans. The operator notes that it is possible only after filling out the application, during the session processing.The nominal rate is determined from 9.9% for Liberty's salary clients and from 15.9% for clients of other banks.Consumer loans, including pension loans, are issued for a term of up to 4 years. The borrower's age at the end of the loan should not exceed 84 (overdraft up to 76 years).As of Q1/2025, the volume of loans secured by pension (and other social payments) (total value, not principal amount) is 439.7 million GEL (2024 – GEL 431.3 million GEL).In the first quarter of 2025, the volume increased, while the number of loans decreased. Total, 286,877 units of credit have been issued (01.01.2025 - 294,991).Annually, the volume has increased by 4.7%, the number has decreased Q1/2024 – 420 million; 341,388 units of loans).

1749820875

European Parliament adopts resolution on media freedom in Georgia, Mzi...

1750339161 • Politics

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1750156950

Politics

1750339161

European Parliament adopts resolution on media freedom in Georgia, Mzi...

The resolution calls for the immediate and unconditional release of Mzia Amaglobeli, founder of Batumelebi and Netgazeti online newspapers, and the dropping of all charges against her.It also urges the “immediate repeal of all repressive legislation”.“The European Parliament, having regard to its previous resolutions on Georgia, having regard to Rules 150(5) and 136(4) of its Rules of Procedure,A. whereas Mzia Amaglobeli, a journalist and co-founder of Batumelebi and Netgazeti outlets, was arrested during pro-European protests on 12 January 2025 and faces four to seven years in prison for a provoked incident involving a police officer;B. whereas the adoption of draconian legislation – such as the Foreign Agents Registration Act (FARA) and amendments to the Law on Broadcasting, Code of Administrative Offences and Law on Grants – constitutes a dangerous acceleration of democratic backsliding and deliberate authoritarian strategy by Georgian Dream to silence critical voices in civil society and independent media and persecute the political opposition;C. whereas the authorities have virtually annihilated remaining independent media outlets in the country; whereas the public information space is fully dominated by pro-government media, spreading Russian-style propaganda and anti-European disinformation;D. whereas in Mzia Amaglobeli’s case, the authorities ignored procedural safeguards, imposed pre-trial detention without a clear legal basis, contested by the Public Defender, and assigned a presiding judge lacking qualifications in criminal law; whereas she is being punished for exposing corruption and reporting on election fraud during the 2024 elections;E. whereas she reportedly suffered inhumane treatment and undertook a 38-day hunger strike;F. whereas Estonia and Lithuania have imposed personal sanctions on Georgian judges and police officers linked to Mzia Amaglobeli’s case;1. Demands Mzia Amaglobeli’s immediate and unconditional release and the withdrawal of all charges against her, and denounces her politically motivated arrest and prosecution;2. Strongly condemns the Georgian Dream regime’s systemic assault on democratic institutions, political opposition, independent media, civil society and judicial independence;3. Expresses deep concern over arbitrary detentions and the harassment of, and violence against, journalists in Georgia, including smear campaigns, legal persecution, abuse and gender-based violence in detention; calls for independent investigations and urges the authorities to immediately end intimidation and ensure journalists’ safety and freedom;4. Urges the Georgian authorities to release all political prisoners and other illegally detained persons without delay, including activist Mate Devidze, opposition leaders Zurab Japaridze, Nika Melia and Nika Gvaramia, and former President Mikheil Saakashvili, and denounces the violent abduction of UNM Chair Tina Bokuchava’s husband and the reported threats to her children’s safety;5. Calls for the immediate repeal of all repressive legislation, the restoration of democracy, and full protection of media freedom and civil liberties;6. Calls for the EU to step up support for Georgia’s independent media and civil society following the entry into force of the FARA, and monitor ongoing trials;7. Regrets the persistent inaction of the Council, Member States and Commission and reiterates its repeated call on Member States to impose bilateral sanctions against Georgian Dream leaders and officials responsible for democratic backsliding;8. Instructs its President to forward this resolution to the Council, the Commission, the governments and parliaments of the Member States, the Council of Europe, the OSCE, President Zourabichvili, and the self-appointed authorities of Georgia”, - the document reads.

1750241461

GD will not invite OSCE/ODIHR to observe the municipal elections

According to the PM, in general, there is no such practice of inviting the OSCE/ODIHR to monitor local elections.“There are some exceptions, like in 2022, because these elections were related to the topic of parliamentary elections. There are cases when the OSCE/ODIHR election observation mission is invited to monitor local elections as an exception. According to the standard practice, the mission is invited to observe the parliamentary elections.Therefore, we believe that it is not worth overloading them with local elections. Municipal elections will be held in a healthy form. The OSCE/ODIHR observed parliamentary elections, prepared its opinion, but nobody got interested in the report. Today, these people urge us to invite the mission,” he said.The British Embassy in Georgia called on the Georgian government to extend an invitation to ODIHR/OSCE to observe October’s municipal elections and take forward all recommendations in ODIHR’s final report on the 2024 parliamentary election.

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British Embassy calls on Georgian gov't to invite ODIHR/OSCE mission t...

According to the statement, this commitment is set out in the Strategic Partnership and Cooperation Agreement, which both Governments signed in 2019.“Article 4 of the Agreement commits the parties to cooperation on increasing the stability and effectiveness of democratic institutions and the rule of law; on ensuring respect for human rights and fundamental freedoms; on making further progress on judicial and legal reform. Article 341 of the Agreement also commits both sides to ensure the involvement of civil society in UK-Georgia relations and to facilitate an enabling environment for the development of civil society.It is on this basis that for many years the UK has supported civil society in Georgia, including voter education activities, funding for local election observation groups working to internationally approved standards and contributed to successive ODIHR/OSCE monitoring missions in Georgia.The Georgian government itself previously supported this activity and we reject its current description as funding ‘propaganda and extremism’. Nothing could be further from the truth. Georgian legislation makes provision for citizen monitoring, which is an important part of professional and transparent scrutiny of elections.We encourage the Georgian Government to extend an invitation to ODIHR/OSCE to observe October’s municipal elections and take forward all recommendations in ODIHR’s final report on the 2024 parliamentary election.The hopes and aspirations of the Georgian people are for democracy and freedom, and we hope that UK-Georgia co-operation, as well as Georgia’s co-operation with European institutions, will further contribute to those goals,” reads the statement.

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Ivanishvili begins to enforce Russian laws with the Putin and Lukashen...

“On June 17, Razhden Kuprashvili’s bureau began to enforce anti-constitutional Russian laws through the Murusidze court. They demand from us, human rights defenders, without legal grounds, to hand over personal information of citizens under our protection – victims of torture, women victims of violence, pupils, students, teachers, pensioners, disabled people, entrepreneurs, whistleblowers, journalists, observers, illegally dismissed civil servants and their family members. In particular, they demand that we hand over personal information, including names, surnames, photographs, financial and banking details, and health information of all those people who trusted us and do not benefit from our help.We are not going to betray the trust of citizens under our protection, even if this means our persecution and imprisonment. We will not share information about people oppressed by Ivanishvili’s regime with the Russian regime. We will take legal action against these orders. Their goal is clear to us – Ivanishvili is trying to destroy free civil society in Georgia, just as the Bolsheviks did in the 1920s, and the Putin and Lukashenko regimes did in the last decade. We declare once again that we are not going to live by Russian laws, accept the sabotage of Georgia’s European future, and will continue to fight to protect the rights of the Georgian people,” reads the statement.

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For Georgia's leader Gakharia to be summoned again to Parliamentary In...

As head of the commission Tea Tsulukiani stated before the session, Gakharia has already been notified and is expected to appear for further questioning on June 23. The inquiry will focus on the villages of Chorchani, Tsaghvli, and surrounding areas.“We will re-interrogate Giorgi Gakharia on June 23. The notification procedure has begun and is ongoing to ensure full legal compliance. I hope Mr. Giorgi will appear so we can continue discussing the situation in villages where, according to him, not a single centimeter of land was lost under his decision to place a checkpoint. However, last week, a Tsaghvli resident testified that the entire forest had been taken over, and Russia advanced further into Georgian territory”, - Tsulukiani said.She noted that this contradiction between Gakharia’s statements and local testimony requires further clarification.“In addition to territorial issues, Gakharia will be questioned about the period from his 2021 resignation to the present, including his and his party’s international activities”, - Tsulukiani added.