MREL is part of the defense mechanism of the sector in a stressed situation. It gives the NBG the discretion to take the bank's raised funds into the capital.Funds to be used for this purpose, i.e., convertible resources, are "allowed liabilities", which include funds borrowed from financial institutions (eg: EBRD, IFC...), etc. bonds.The ratio of liabilities and capital instruments of this category to regulatory capital and total liabilities (MREL rate) is set at 10% from 01.01.2024.Other banks can maintain the mentioned ratio, although it is not mandatory.The delay in the current issues in the NBG is related to the recent changes. The board of vice-presidents who have left the bank's board are transferable.Despite the fact that the 3 retired vice-presidents will continue their activities until the end of November, none of them is going to actively participate in the processes. With additional clarifications, they specify only that the motive of their move was not political and was due to purely professional activities.After leaving the board, the vice-president’s salary is maintained for 6 months, and the board membership allowance is removed.The remuneration of vice-presidents, according to the property declaration, varies between 18,000-19,000 GEL, where the salary of a board member is in the range of >GEL6,000.
However, the market absorbed only USD 7.6 million and thus removed more than GEL 20 million from circulation.In total, during the last 3 auctions, the NBG removed more than GEL 170 million from circulation. In the last trade, the exchange rate decreased to $1 - GEL2.6682.At the end of last week, the central bank first sold 20 million for USD 1 at GEL 2.6841; At the next auction, the rate rose to 2.6884, and it sold for only USD 37.2 million from the USD 50 million bid.In September, the mass of national currency in circulation increased and exceeded 5.7 billion GEL. The country's reserves decreased by USD 64.8 million through foreign exchange auctions
In January-August of this year, foreign currency reserves of the country were replenished by $1.464 billion with foreign currency purchases on Bloomberg. In September, the bank spent 64.7 million.The NBG had to sell the currency before September 20, even at the beginning of June. 40 million at the auction. USD was withdrawn and the market absorbed only USD 17.1 million. Then the weighted average exchange rate was 2.6330. At the last auction on September 25, the dollar was sold at the rate of USD 1/GEL 26682.As stated by the NBG, the central bank engages in interbank trading when the exchange rate ($/GEL) begins to fluctuate, in the direction of depreciation or strengthening. If it moves towards depreciation, the NBG sells the US dollar, if the GEL tends to strengthen, then it buys.The regulator intervenes in the foreign exchange market in such a way (when it balances, it reduces excess volatility) that the medium and long-term stability of the exchange rate is not threatened.Excess is noted when there is a large transaction in the market compared to its volume or there is a temporary lack of liquidity.In addition, the asymmetry of the influence of currency interventions should be taken into account. The intervention is more effective when the GEL is solid.
"Friends and colleagues, I am resigning from my position at the National Bank," Mestvirishvili wrote on the social network.Let us remind you that Papuna Lezhava also resigned from the position of the vice-president of the National Bank. Natia Turnava, acting President of the National Bank, confirmed the information to the journalists.On September 19, the National Bank of Georgia lifted restricted access to bank assets and financial transactions to the US-designated former Georgian Prosecutor General Otar Partskhaladze.
The Acting President of the NBG announced this at a briefing held on Wednesday, September 20.Before that, Turnava noted that TBC Bank and Bank of Georgia did not violate the law by freezing the accounts of Otar Partskhaladze, since the amendment introduced by the NBG in the rule of execution of sanctions regimes came into force today.At the briefing, Natia Turnava spoke mainly about the change made on September 19 in the rules for the implementation of sanctions regimes. According to her, a citizen of Georgia cannot be isolated from the banking system, as long as the charges brought against him are unconstitutional."No person can be isolated from the banking system until his conviction is unconstitutional. Our sector is sustainable, we are in constant consultation with the banks, and nothing threatens the sustainability of the system", said Natia Turnava.It became known today that Papuna Lezhava, vice-president and board member of the National Bank of Georgia, has resigned. The information about his resignation was confirmed by Natia Turnava, the Acting President of the NBG, at a briefing held today, September 20.The motive and reasons for Lezhava's resignation are currently unknown.
"Papuna Lezhava informed me via electronic communication that he has written a resignation letter. He is a good professional, he worked in the National Bank for so many years. I want to say that different people, my colleagues or former colleagues, may have their views on this or that topic. I have no doubt that when it comes to the implementation of the Constitution of Georgia by the National Bank and its compliance with it and the protection of the fundamental rights of Georgian citizens, there should not be two opinions. My position here is clear and irrevocable," said Turnava.
The contest acts to promote financial education among the young generation in interesting, cognitive ways. It is a nice way to raise financial education awareness of young people, to form responsible actions and improve attitudes, also to encourage reasonable financial behaviors of young people.Interested participants were free to submit photos for the contest starting from August 12. About 100 works took part, from which 20 finalists were selected by the jury members. Contestants had the opportunity to present their works in person at the closing event on September 17.All finalists of the competition were given branded commemorative gifts from Basisbank. The finalists were awarded with special certificates, and the six winners were given cash prizes."Promotion of financial education of the young generation is one of our priority areas. With the involvement of Basisbank, the International Youth Day was celebrated with innovative ideas and a photo contest, which acts to spark young generation’s interest and knowledge sharing in financial education issues. We believe this will help them make responsible financial decisions in the future,” Tamar Khaduri, Head of Basisbank’s Strategic Communication Department, said.
Inflation, as expected, is below the target rate (3 percent) and in August annual inflation was 0.9 percent, while core inflation stood at 2.5 percent. The role of external factors in the formation of inflation has eased significantly. In particular, since the previous year, prices of raw food commodities on international markets have decreased, and international shipping costs have approached almost its pre-pandemic levels. These, alongside with the appreciation of GEL, have reduced imported goods prices in Georgia. Tight monetary policy and low inflation expectations are also contributing significantly to the decline in inflation. As a result, domestic inflation has also been declining, albeit at a relatively slower speed and in August it equaled 6.1 percent. It is expected to decrease even further during the year. At the same time, there are early signs of neutralization of demand-side inflationary pressures. In particular, the growth rate of economic activity approached the long-term potential economic growth. According to the current forecast, other things being equal, inflation will remain below the 3 percent target level in the coming months of 2023, and will remain close to it in the medium term. It should be noted that inflation remaining below the target level in the short-term contributes to long-run inflationary expectations normalization.Despite these positive trends, inflation risks remain high. The current tense geopolitical situation increases the uncertainty on the commodities markets. In terms of inflationary pressures, along with external risks, domestic economic trends are still noteworthy. Despite the stabilization of aggregate demand, it is worth noting that the credit activity in foreign currency has accelerated. The continuation of this trend may create additional pressures on inflation outlook down the road.Considering these risks, the NBG continues a gradual exit from its tight monetary policy with cautious pace. Accordingly, the Monetary Policy Committee reduced the monetary policy rate by 0.25 percentage points at the current meeting. Taking into account inflation trends and forecasts, other things being equal, the NBG will continue to normalize the policy rate only at a moderate pace.The NBG continuously monitors the developments in the economy and financial markets and will use all available tools to ensure price stability.The next meeting of the Monetary Policy Committee will be held on October 25, 2023.
The award for the trading period July 2022-June 2023 recognizes a trade finance transaction supported by ADB’s Trade Finance Program (TFP) that specifically contains environmental sustainability components.Basisbank was acknowledged for its commitment to supporting its clients in their efforts to reduce climate change and move beyond net-zero to build a sustainable economy. This approach brings added value that has a tangible positive impact on climate change.“We’re delighted to have won ADB’s TFP Best Green Deal award as it is one of the most prestigious awards for us which echoes our bank’s commitment to climate alignment, environmental sustainability and cross-border trade. We would like to thank ADB for recognizing our efforts and supporting us over the years. We continuously build our expertise and partnerships to accelerate climate-aligned financing and help our customers develop practical and scalable solutions to mitigate climate risks,” Basibank General Director David Tsaava says.About BasisbankBasisbank Group is the fourth largest financial group in Georgia with a market presence of 30 years. The group, that covers insurance and leasing markets as well, delivers top-notch services to more than 200,000 business and retail clients through its multi-channel distribution platform (with a strategic focus on digital channels) and a network of 40 branches throughout Georgia.About Asian Development BankEstablished in 1966, Asian Development Bank (ADB) covers 68 countries, including 49 from the Asian region. With an AAA credit rating and over 250 partner banks, Asian Development Bank’s Trade Finance Program (TFP) provides financial access to trading sector with credit resources and guarantees, hence facilitating economic growth and creating new jobs, subsequently improving living standards. TFP initiatives facilitate global trade and supply chain participants to develop as environmentally conscious, sustainable, inclusive, transparent and socially responsible entities and aim for the successful, multilateral, resilient and sustainable development of the Asia-Pacific region. ADB is also committed to eradicating extreme poverty in the region.
·Decide with whom you will be spending vacation with.·Plan vacation dates and agree with colleagues at work.·Close your eyes and imagine the place where you most want to go on vacation. Plan your vacation there. Don't let challenges scare you because you deserve it.·Make a budget in advance that you will be using during your vacation.·In order to accumulate the necessary amount, it is good if you open the account in advance and start saving up in advance.If you plan all this in advance, the summer will surely pass perfectly. However, when planning your budget, keep in mind that you can take a vacation first and pay later, with the help of the Basisbank Credit Mego Card. It offers the friendliest conditions in the market, best customized to the client's needs.The Basisbank credit card is an ideal option for vacation, shopping or other unexpected expenses. When using wisely, clients enjoy an interest-free grace period of up to 55 days, pay the cost of the product or service without commission and receive cashback in the amount of 1% of the amount paid with the Mego card at the POS terminal of any bank.Getting a Mego Credit Card is free and no service fee is charged. It is possible to use the highest credit limit up to GEL 30,000 and enjoy the lowest interest rate. The amount of the monthly payment is only 2% of the amount used. The low ATM withdrawal fee of 2.5%, at least GEL1, is also one of the advantages of the card, compared to the credit cards in the market.Basisbank's Mego Credit Card will prevent your vacation from unforeseen events.
🎥 Basisbank Partners with a unique White Sails Project in Batumi
Archil Mestvirishvili also resigns from the position of the vice-presi...
The NBG introduces new regulation for 3 banks
Turnava confirms that she single-handedly changed the procedure for im...
NBG replenished the foreign exchange reserves by more than $1.4 billio...
Georgian PM, Turkish President review security matters, strategic part...
Garibashvili noted the two countries had achieved “significant” progress in cooperation, reflected in both economic and political dimensions, the Government Administration said.The Georgian official stressed the existing regional projects were a “clear” example of “effective” strategic cooperation, sustainable development and reliable partnership between the two countries that would bring “more economic independence, security and prosperity” to both countries.The officials also reviewed the security environment in the Black Sea region, with Garibashvili emphasising the importance of settling issues through peaceful negotiations.He also extended his gratitude to Erdoğan for his “strong” support for Georgia's sovereignty, territorial integrity, as well as EU and NATO integration.
President delivers her annual report in parliament
According to Zourabichvili, the Georgian government gradually transformed.“Instead of strengthening state institutions, being the cornerstone of democracy, the one-party system and its influence get stronger. Laws adopted in an expedited manner (on covert recordings, abolishment of state inspector, changes in the rule for appointment of judges and foreign agents bill) serve your power’s prolongation instead of serving democracy strengthening and citizens’ welfare. The court reform, vital for the country’s future, is at a deadlock,” President said.Salome Zourabichvili went on to say that the ruling party members speak in unison, and those having different viewpoints, tend to quit the party.“The party influence is evident in the government and parliament. The party turned into a decision-making space. The party chairman announces his standpoint on all political issues in advance, and the decision-making process is vague, not to mention open discussions.You are the government confronting the country’s foreign goal, the people’s mandate. By inviting Gavrilov (Russian MP) in 2019, you raised doubts and questions for the first time, though the actual transformation began in 2021 when the Georgian Dream former Chairman Bidzina Ivanishvili quit politics,” she said.President also recalled the annulling of the document drafted with the engagement of the European Council President and rejection of the EU loan.“You have never stopped the anti-European rhetoric, blaming and insulting our partners. All this finally came to the extent that we expelled the former EU ambassador from the country with reprimands and accusations,” Zourabichvili stated.
Anti-Russian sanctions were not violated at Georgian customs – Ministe...
As the Minister of Finance noted, all products included in the list determined by the countries participating in the sanctions, as well as any customs operations (including export, re-export and transit), which can be carried out by sanctioned individuals or companies, are subject to special customs control in Georgia.In his speech, the Minister noted that from the very first days of the imposition of international sanctions, a relevant working group was created in the Customs Risk Management Division of the Customs Department of the Revenue Service, which carries out centralized control of the enforcement of the said sanctions.
PM attends test flight of unmanned aerial vehicles by Georgian-Polish...
The FLYEYE unmanned aerial system is designed for high-precision tasks in adverse environmental conditions and radio-electronic warfare, in every climate zone. The system allows for covert surveillance and the analysis of captured data in real-time, day and night. The Warmate loitering munition boasts confirmed effectiveness and a high-precision target hit. It employs various types of warheads. It is used by the Polish Army and the regular armies and special forces of NATO member or non-member clients alike.Delta-WB LLC was established in Georgia by Delta International LLC and WB Electronics SA, companies established by Delta with 100% participation shares. The goal of this Georgian-Polish enterprise is to assemble UAVs. The enterprise will be able to manufacture hundreds of drones a year. At this stage, the company ensures procedures for streamlining the assembly line for Warmate and FLYEYE UAVs.To develop the military industry, an agreement has been signed between Delta-WB and the Defense Ministry of Georgia which envisages opening the first UAV training center in the region. The center’s professional instructors will retrain the relevant Defense Forces personnel.Irakli Garibashvili, joined by the Defense and Interior Ministers, dined together with soldiers in the dining hall of the Training and Military Education Command’s Support Center Krtsanisi.
PM Launched A Meeting Of The Competitive Selection Commission For The...
Commission members elected Revaz Javelidze, Head of Government Administration as Chairman of the Competitive Selection Commission on the grounds of voting. In line with the Executive Order N289 issued by Irakli Garibashvili, Prime Minister of Georgia on 22nd December 2022, a competitive selection process was launched for the vacant position of the Head of Anti-Corruption Bureau of Georgia. The Referred Competitive Selection Commission was established and its composition was defined on 30th December 2022 in line with the Executive Order N304.Competitive Selection Commission comprises the following officials:– Revaz Javelidze, Head of Government Administration;– MP Mikheil Sarjveladze, Chairman of the Parliamentary Committee on Human Rights and Civil Integration;– MP Anri Okhanashvili, Chairman of the Parliamentary Committee of Legal Affairs;– Giorgi Mikautadze, Deputy Chairman of the Supreme Court of Georgia;– Bakur Abuladze, First Deputy General Prosecutor of Georgia;– Tamar Gvaramadze, Acting Public Defender (Ombudsman) of Georgia;– Alexandre Kevkhishvili of Transparency International – Georgia.The Anti-Corruption Bureau of Georgia has been established as a legal entity of public law (LEPL) in line with amendments made to the legislation of Georgia. It is mandated to operate independently and be accountable towards the Parliament of Georgia and Interagency Anti-Corruption Council of Georgia.The Anti-Corruption Bureau will be managed by the Head of Anti-Corruption Bureau, who will be selected by a commission comprising public institutions and civil society representatives through a process of competitive selection. At least 2, but maximum 5 candidates will be selected through the process. Head of the Anti-Corruption Bureau will be appointed by the Prime Minister of Georgia for a tenure of 6 (six) years.