Sheri (commercial name "Sheriff Crypto Exchange") is the first and only VASP_ to be fined and suspended, after less than 2 years of operation.Sheri was fined 465,000 by the National Bank of Georgia for several violations, including not monitoring the client's income, not determining the purpose of transactions, and not verifying the origin of the virtual asset of the virtual asset service provider (VASP).The majority of crypto traders choose an exchange platform. Although there are offices, Sheri belonged to this category and, accordingly, served clients at the office (Pekini Ave., Tbilisi) with a cash desk.Digital wallets, also known as VASPs, perform purchase and sale transactions through an operational, so-called hot wallet. There is also a cold, so-called Ledger, which is referred to in fintech circles as a simple wallet. It is digital, but less modernized. Certain procedures are performed manually and selected by a part of the clients who think that it is safer and feels more protected than the latest versions.The regulator imposes the same requirements on cash-based providers, VASPs are required to have software mechanisms for client verification and crypto wallet screening.The Ashkashidzes (founders of Sheriff) are working on converting several digital currencies, including Ethereum and Bitcoin, mainly the digital dollar USDT, into GEL and USD (and vice versa).Currently, 40 Wasp exchanges are registered with the National Bank of Georgia. The latest license was obtained by Vnisi Digital Assets.

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According to Creditinfo, in the last reporting month (May), the credit score of 460 customers decreased. For the first time, the deposit of funds was delayed for a period of more than 1 month.As of 01.06.2026, the leasing portfolio has increased to 879 million GEL.In total, in the Creditinfo database, there are 1.992 million active borrowers (banks, MFOs, SGSs, microbanks...) loan records, and 93.6% - 73.% billion of the total portfolio (GEL 78.8 billion) of banks' investments fall on loans.There are several active companies in the leasing market, mainly subsidiaries of banks: TBC Leasing, BB Leasing, Teraleasing, Crystal, Alliance Group. There is also a large automotive group, Tegeta Leasing.

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The parties discussed existing economic and financial cooperation between Georgia and China, ongoing collaboration in the direction of financial markets and services, and opportunities for deepening future partnerships.The National Bank of Georgia and the People's Bank of China highlighted the progress achieved under the Memorandum of Understanding (MoU) signed last year."Since the signing of the MoU between the People's Bank of China and the NBG, we see significant progress in cooperation in many directions. The steps taken towards the development of financial markets and financial services between the two countries, Including, in the direction of diversification of international reserves are particularly noteworthy," added Natia Turnava.During the meeting, they also spoke about the economic and trade relations between Georgia and China. It was emphasized that China is one of Georgia's top trading partners. The volume of exports and imports, as well as Chinese investments and tourist flows, have significantly increased."Economic cooperation between China and Georgia is developing dynamically, creating a solid foundation for further deepening our collaboration in the financial sector," noted the Governor of the National Bank of Georgia.During the meeting, the parties reaffirmed their readiness to continue active cooperation to further strengthen financial and economic ties between Georgia and China.

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The symposium was attended by governors and senior representatives of around 30 central banks and monetary authorities from around the world, including representatives from the central banks of France, Germany, Switzerland, the United Kingdom,  Singapore, Hong Kong, Brazil, Argentina, Indonesia, Saudi Arabia, and Qatar.This large-scale international event serves as a high-level platform where representatives of central banks, international financial institutions, and the private sector discuss global macroeconomic and financial developments, modern reserve management strategies, prospects for the development of the international monetary system, and current and long-term trends in financial markets.During the symposium's first session, "Global Macroeconomic and Financial Market Developments," Natia Turnava reviewed structural changes in global financial markets, the impact of geopolitical processes on investment decisions, and modern challenges in central bank reserve management.In her speech, the Governor of the National Bank of Georgia noted that the global investment environment has become increasingly complex as geopolitical tensions, trade fragmentation, and macroeconomic uncertainties continue to rise."The prolonged trade tensions and military conflicts in the Middle East and Europe, as well as global supply chain disruptions, have become significant sources of market volatility and investment risks. Today, persistent geopolitical developments are increasingly becoming economic variables rather than external risks, which directly influence inflation, capital flows, exchange rates, and investment strategies," stated Natia Turnava.The NBG Governor paid special attention to the management of foreign exchange reserves, noting that in the face of growing geopolitical risks, safety has become the top priority for reserve management. She assessed that the attractiveness of gold has increased, as reserve managers seek assets that are less exposed to sovereign and geopolitical risks.She added that the trend of reserve portfolio diversification is evident globally. There is also a noticeable increase in the attractiveness of Asian capital markets."For central banks, reserve management is guided by three fundamental principles: safety, liquidity, and profitability. While all of these objectives remain important, the relative importance of safety has increased significantly in recent years. This is why many central banks are seeking to enhance portfolio resilience and greater diversification across reserve currencies and asset classes," noted Natia Turnava.The NBG Governor also highlighted that investments in gold have significantly and positively contributed to the return on Georgia's international reserves. She further explained that the National Bank of Georgia implements geographic and currency diversification of markets for reserve placement, and in this context, alongside traditional markets, Asian markets and currencies are attracting growing interest.According to Natia Turnava, in such an environment, disciplined risk management, consistency, and flexibility may be among the most important drivers of long-term investment success.

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23% from March 2025 to March 2026 to GEL5.04 billion (about $1.87 billion). This growth was largely driven by a 43% rise in the value of Lion Finance Group, Georgia Capital’s largest and only listed holding, while the private portfolio value also grew by 18%. Portfolio rotation, such as the sale of the water utility business, also affected the performance of the private portfolio. In the first three months of 2026, the total portfolio value reduced by 0.6%, due to some contraction in Lion Finance Group’s share price, the recent divestment, and dividends paid. However, this was partially offset by robust performance in the private portfolio, which was up 3%.Value creation was most pronounced in the retail (pharmacy) business (up 6.1%) and the insurance business (up 7.6%), while the emerging and other companies segment weighed on the overall portfolio value, as it did in 2025, which may lead to some divestments in the future. Over the three months, the net asset value (NAV) decreased by 0.8%, although S&P notes that it has increased by 33% since March 2025.“We expect Georgia Capital to maintain low leverage, supported by continued disciplined debt management. As part of its GEL700 million capital return program, Georgia Capital had used GEL274 million as of April 2026 to redeem a portion of its outstanding bond (which equates to about $100 million of the total principal of $150 million). We expect to see continued use of cash or potential proceeds from the sale of smaller private assets for debt redemption in the near term, demonstrating the company’s commitment to deleveraging. Furthermore, the target NCC ratio of 10% over the cycle supports our view of the company’s disciplined approach to capital allocation.According to the company’s policies, an NCC ratio of 10%-40% will trigger tactical share buybacks or investments, an NCC ratio of below 10% could generate more substantial share buybacks or investments, and an NCC ratio of above 40% would lead the company to preserve cash. As of March 31, 2026, the NCC ratio was 3.9%. A significant increase is not in our base case nor would we view it as commensurate with our rating. Although the ratio slightly increased from 2.3% in December 2025, due to a $50 million share buyback and cancellation program announced in February 2026, it is in line with allocation expectations. The company's NCC ratio includes planned investments, announced share buybacks, and a contingency/liquidity buffer.Our adjusted LTV ratio for Georgia Capital as of March 31, 2026, was 0.4% (excluding future share buybacks or potential equity investments that are uncommitted). We think that the company could navigate relatively volatile market conditions that affect the valuation of its assets while maintaining an adjusted LTV ratio well below 10%”, the document reads.One of the main limitations of S&P's assessment of Georgia Capital's business risk remains its high concentration in Georgia and significant reliance on a single listed asset, Lion Finance Group, which accounts for 47.2% of the total portfolio value and owns 16.6% of LFG itself.According to S&P, the weighted average credit quality of the companies invested in by the group corresponds to the level of "B+".

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The IMF said steps taken by the National Bank of Georgia (NBG) to improve its governance include redistributing responsibilities among its executive members and strengthening the regulatory framework for the replacement of the National Bank’s President.“Most of the recommendations of the 2022 Safeguards Assessment have been implemented, including the recent removal of discretionary transfers to the government,” the IMF’s Executive Board said in a report.However, the IMF notes that additional reforms are needed to further align with international best practices. According to the Fund's assessment, the transition to a collegial decision-making model will improve the quality of decisions through collective deliberation.

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“Georgia’s economy has remained resilient amid heightened global uncertainty, including from the war in the Middle East. Real GDP expanded by 7.5 percent in 2025 and remained strong in early 2026, while inflation rose above target due to higher energy prices, reaching 5.9 percent in April 2026. Fiscal and external buffers have strengthened, with reserves reaching the IMF’s adequacy threshold and public debt declining below 35 percent of GDP.Assuming the Middle East war is resolved soon, growth is projected to moderate to 6.5 percent in 2026, gradually converging to its medium-term potential rate of 5 percent by 2028. Inflation is expected to return to target by mid-2027 and public debt to remain near current levels with continued prudent monetary and fiscal policies”, - the document reads.According to the IMF, Georgia's external position in 2025 was stronger than expected, given medium-term fundamentals and preferred economic policies."Amid the narrowing of the current account deficit and the increase in international reserves, the external sector position has strengthened. In 2025, the current account deficit decreased to a historical low of 2.6 percent of GDP, mainly due to strong growth in services exports (especially ICT and tourism) and low growth in goods imports against the backdrop of low oil prices. At the end of April 2026, international foreign exchange reserves amounted to USD 6.4 billion, which corresponds to 102 percent of the IMF's reserve adequacy ratio (ARA). This result reflects the National Bank's net foreign exchange purchases of more than USD 3 billion in previous years, which were supported by both the de-dollarization process and financial inflows, as well as valuation gains from the increase in the price of gold," the IMF notes.The report also highlights that Georgia’s banking sector is healthy. Banks are well-capitalized, liquid, and profitable, and the share of non-performing loans remains low.“Sound macroeconomic management and macroprudential policies have facilitated the further de-dollarization of the economy. In addition, the dollarization of deposits has declined, driven by improved market confidence and a weakening of the US dollar,” the report, prepared by the IMF’s Executive Board, says.

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In this regard, the IMF published a report, according to which the financial institution has revised its forecast for Georgia’s economic growth upward to 6.5%.“Despite elevated global uncertainty, including from the war in the Middle East, Georgia’s economy remains resilient, supported by sound macroeconomic management and strong policy buffers.Growth is expected to remain strong, though moderating, while inflation would stay above target till mid-2027 and the current account deficit would widen temporarily. Public debt is expected to remain at prudent levels, while reserve coverage would strengthen further.Policy priorities include bringing inflation back to target, continuing to build reserve buffers, strengthening central bank and state-owned enterprise governance, and advancing reforms to support job creation and competitiveness,” the IMF report said.

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Specifically, he was granted 27,783 ordinary shares, which management typically receives as salary or as a bonus.Specifically, ordinary shares are granted to managers as deferred shares under a compensation scheme that they have the option to cash out over several years, according to their contracts. In addition to share-based compensation, management also receives shares as bonuses.Among them, Kurdiani was granted shares twice in 2025 - once in March with 14,052 shares as compensation, and at the end of the same month with 40,227 shares under the Long-Term Incentive Plan (LTIP) for work performed in 2022-2024.This year, Kurdiani received 1,109 shares of TBC PLC for work performed in 2025.

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As a result of this latest purchase, the share of monetary gold within the National Bank of Georgia’s international reserves will reach 15.5%. This reflects a broader upward trend in the country’s international reserves, which have reached a historic high of USD 7.0 billion, equivalent to 114.8% of the International Monetary Fund’s Assessing Reserve Adequacy (ARA) metric.According to the National Bank of Georgia, the decision is part of the National Bank’s long-term international reserve management strategy, aimed at further diversifying its reserve assets, enhancing stability, and safeguarding the reserves against inflationary risks. Monetary gold is a widely recognised reserve asset among global central banks, serving to reduce overall portfolio risk and enhance resilience against geopolitical shocks.The National Bank will continue to manage its international reserves in strict accordance with the principles of safety, liquidity, and profitability. As these reserves continue to grow, the NBG remains receptive to additional diversification opportunities, with future decisions informed by long-term strategic objectives and international best practices.Notably, robust macroeconomic fundamentals enabled the central bank to replenish its international reserves throughout 2025. Last year, the NBG purchased USD 2.4 billion, increasing its reserves to USD 6.16 billion by year’s end. By February 2026, reserves had then reached a historic high of USD 6.65 billion.This move aligns with broader global trends, as the world’s central banks continue their longstanding practice of accumulating gold. In the first quarter of 2026 alone, central banks purchased over 970 tonnes of gold, nearly 80% of the total volume acquired throughout 2025 (1,235 tonnes). Total central bank purchases have consistently exceeded the 1,000-tonne mark for four consecutive years (2022–2025).Furthermore, central bank demand remains largely inelastic to fluctuations in the gold price, effectively providing a stable floor for its market value. The ongoing conflict in Ukraine, escalation in the Middle East, U.S.-China trade tensions, and the U.S.-Iran conflict that erupted in February 2026 have all consistently driven and reinforced a structural risk premium in gold prices, cementing its value as a premier safe-haven asset.

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