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Finance
NBG announces on VISA/MASTERCARD issue

GBC offers the full statement of the National Bank of Georgia:"We would like to respond to the misinformation spread in various media outlets that it is planned to restrict the activities of payment systems - VISA and MASTERCARD in Georgia.First of all, we would like to clarify that this is disinformation and an attempt to misinterpret real facts, which do not correspond to reality.One of the functions of the National Bank of Georgia is to promote the safe, sustainable and effective functioning of the payment system.To fulfill this function, the National Bank constantly cares for the development of the country's payment system, improving its accessibility, efficiency, security, as well as creating a competitive environment in this regard. In particular, the National Bank itself develops the payment infrastructure, prepares proposals for legislative amendments, and also cooperates with the world's leading technology companies, including international card systems Visa and Mastercard.The above-mentioned companies have been represented in Georgia for more than 25 years and have made a great contribution to the development of the country's payment sector, which was one of the main drivers of the growth of non-cash payments in Georgia. Within the framework of cooperation with Visa and Mastercard, new products are periodically introduced, including cross-border transfer tools.However, the development of financial technologies has allowed the world's leading traditional payment systems to improve their efficiency, in particular, a new generation system has been created - the instant payment system, which has already been introduced in more than 120 countries. These systems work without the use of cards and have the ability to offer the end user a payment method similar to card payments, in certain cases with more advantages, such as the cost of implementing the operation and immediate availability of funds to the transfer recipient.Several years ago, the National Bank, together with the World Bank, began working on a project to introduce an instant payment system. This system will be available to our population and business representatives from the second half of 2026. Moreover, this system will further develop the so-called "Open Banking" services, which are offered in Georgia by fintech companies registered by the National Bank with the status of payment service providers. It should be noted that the establishment of the Institute of Non-Bank Payment Service Providers and the promotion of "Open Banking" services are one of the requirements of Georgia's Association Agreement with the European Union, which was fully implemented with legislative amendments implemented in 2022. The synergy of instant payments and open banking services will allow consumers and private entities to receive services tailored to their needs and affordable. It should be noted that despite the fairly high level of development of card payments in Georgia, this payment method is still not widely available to small entrepreneurs due to the high commission for its service. "The instant payment system, in collaboration with fintech companies, will increase the availability of electronic payments in a sector that currently lacks this service.It should also be noted that the new payment system will operate on the basis of international standards and is compatible with the Single Euro Payments Area (SEPA) schemes, which will allow us to integrate our country's payment system with the European payment system after Georgia's accession to the SEPA geographical area.We would like to clarify that the above-mentioned non-card and traditional card (VISA, Master Card, American Express) payment schemes operate in Georgia, as well as in leading countries of the world, and will continue to operate in parallel with each other, which will create more competition in the payment sector and provide a wide choice of services for consumers", - NBG's statement reads.

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Auto loans have also become more expensive

The volume of car loans in bank deposits, after a 6-month decline (September-January), increased in February to 295 million GEL (+ 10% m.m). This is added to the car pawnshop, 135 million.According to BRG, car lending was at its peak at the end of August, with investments of 342 million GEL.The fall-winter drop in financing in commercial banks is explained by external factors, including increased demand from Central Asia, which increased the share of re-exports. Interest rates have risen mainly due to the tightening of foreign currency loans, under the influence of 3 rounds of increases in the limit on foreign currency lending (since January, the limit has been increased to 500,000).Car loans are issued for a term of up to 6 years. Secondary, at an annual rate of 17-18%. The annual rate of a loan for the purchase of a passenger car is determined from 12-13%.The borrower's co-financing is within 20-30%. At the same time, the LTV is not reduced. As you know, the loan-to-value ratio for loans secured by real estate has been reduced to 10% in GEL, and to 20% in foreign currency from 30% for non-residents.As reported by TBC and the Bank of Georgia, only cars brought to the site (including those without clearance) are financed. No purchases are made on credit at auctions.The rate and term are determined taking into account the customer's income and the condition of the car. By the date of disbursement of the car loan, the car must not be manufactured before 2019. Older cars are allowed for auto leasing.Banks mainly issue transport loans through subsidiary leasing companies, the rate is within 28%-44%. Commercial banks mainly issue car installment loans. Banks with large assets operate in this segment.Indexed loan (linked to foreign exchange LIBOR, linked to the GEL variable refinancing rate). It may increase in price several times before the end of the term. According to the loan terms, in GEL, when the rate increases by 5 percentage pont, the effective rate is equal to 23%. In dollars, when the effective rate changes by 3 percentage pont, the effective rate increases from 17% to 21%, and in Euro - from 16.2% to 19.4%.The adjustment of the rate under foreign exchange loans is determined by the increase or decrease in global rates (according to the expectations of the European Central Bank and the Fed's rate and its fluctuations).

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Profitable banks' revenue is half a billion GEL

However, at this time last year, digital banks ("Hash", "Pave Georgia") were still in testing mode. Also, as of 01.03.2025, 2 microbanks of the sector, former MFOs MBC and Crystal, were added.The consolidated figure still includes the sanctioned VTB, which loss exceeds 28 million in January-February .The share of 2 systemic banks (BOGG, TBC) in profitable banks is 87%.

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Losses Increased To Silk Bank By 2 MLN

As of March 1, the bank's loan portfolio is up to 136 million GEL (01.03.2024 – 65.3 million, + 109%Y,.Y).The volume of deposits has also increased, up to 152.6 million GEL. The share has increased by only 0.3 percentage points, up to 0.25% (L/Y- 0.22%).The loss has also grown by 2 million and for January-February, made up 3.3 million GEL (L/Y – 1.3 million).

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Dollarization of loans has increased again

In January, loans issued in the national currency increased by 36 million lari, while foreign currency - by 423 million lari.The portfolio of resident legal entities is 28.7 billion lari, of which 64% is foreign currency.The retail portfolio of banks reaches 32 billion lari.As of February, the larization of total loans is 56.32%. In the reporting month, the coefficient decreased by 0.36 percentage points.The NBG is not planning to raise the limit of foreign currency lending to 500,000 lari yet, as it has only recently come into effect (since January).

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NBG launches sale of Euro 2024 commemorative coins

Starting today, March 26, the National Bank has initiated the sale of commemorative coins themed around Euro 2024. Symbolically, the coin release coincides with the date of the national team’s qualification for the UEFA European Championship 2024.The NBG has issued gold and silver collector’s coins with a 5 Georgian Lari nominal value (gold – with a 1,500-piece edition, silver – with a 10,000-piece edition) to mark the national team’s historic achievement and their participation in the UEFA 2024 European Championship.The coin design sketches were prepared by the Georgian Football Federation in collaboration with the National Bank (designer: Bacho Lagvilava), and the coins were manufactured by the Lithuanian Mint.The silver coin’s sales price is GEL 130, while the gold coin cost GEL 2,200.Sales of silver and gold coins will occur under the following conditions:Silver Coin Sales: Available from 10:00 a.m. on March 26, 2025:Via electronic platform tkt.ge for two days only (March 26-27)At Cash Center and Kvareli Money Museum cashiersGold Coin Sales: Available from 10:00 a.m. on March 28, 2025:Via electronic platform tkt.ge for one day only, until the end of that dayAt Cash Center and Kvareli Money Museum cashiersFrom March 31, 2025, if stock permits, coin sales will continue through Cash Center and Kvareli Money Museum cashiers, as well as the Money Museum’s online store.“To ensure maximum accessibility, we’ve established a limit – each user can purchase no more than one silver and one gold coin. This restriction applies across all official sales channels collectively, meaning the National Bank will issue only one coin per user during this period,” the statement of the National Bank reads.When purchasing coins via www.tkt.ge platform, the following will be added to the sales price:Delivery cost – GEL 7 for Tbilisi, GEL 20 for regionsInsurance cost – 0.4% of the coin’s sales priceWebsite service commission – GEL 10 for silver coins, GEL 82 for gold coinsIf a single user attempts to purchase more than one coin unit on the tkt.ge website, all orders for more than one coin will be cancelled, and the user will only be refunded the direct cost of the coin, transportation, and insurance.The website service commission is non-refundable.

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TBC Capital demand for warehousing capacity is projected to grow by 9%...

The warehouse real estate market in Georgia is largely unorganized and fragmented, dominated by numerous small-scale operators and lacking structured service providers and comprehensive third-party logistics (3PL) options. The estimated gross leasable area (GLA) of warehouse facilities is approximately 2.2 million SQM, with 33% available for lease and 67% owner-occupied.The tenant mix at warehouses includes diverse sectors such as fast-moving consumer goods (FMCG), apparel, electronics, pharmaceuticals, and beauty industries.Among the leasable warehouses, 68% are concentrated in Tbilisi, followed by Kutaisi (17%), Batumi (5%), and Poti (5%). The GLA of warehouses in Tbilisi is 393,369 SQM, primarily concentrated in Samgori (45%), Nadzaladevi (23%), and Isani (11%). The occupancy rate for Tbilisi warehouses is about 77%, potentially higher due to service contracts. Average rents range from $3 to $5 per SQM, excluding VAT and service fees, with Class A facilities seeing rates rise to $7 per SQM.In Kutaisi, the warehouse market features mainly traditional facilities, focusing on manufacturing, assembly, and storage, supported by the Kutaisi Free Industrial Zone (FIZ). Average rents here are between $2 and $2.5 per SQM, with an occupancy rate of 36%, likely understated due to service contracts.Poti serves as a vital logistics and industrial hub along the Black Sea coast, featuring a Free Industrial Zone (FIZ) and numerous terminals and transit companies that prioritize logistics services and ensure a fast cargo turnover rate over long-term lease agreements. Therefore, the average occupancy rate in Poti is around 21%, although actual utilization may be higher due to significant cargo volumes.Batumi accounts for 5% of the leasable warehouse market, with average rents ranging from $3 to $6 per SQM and an occupancy rate of 39%, which may also be underestimated. Rustavi’s warehouse market is characterized by small, unorganized players focused on car parking rather than dedicated logistics facilities, indicating opportunities for future growth in this underdeveloped area.In 2023, the estimated demand for warehousing capacity in terms of volume reached 38.6 million cubic meters. In 2024, improvements in trade and transit volumes led to an 11.6% increase in the need for warehousing space. Looking ahead, demand for warehousing capacity is projected to grow at a compound annual growth rate (CAGR) of 9% between 2025 and 2028, indicating a sustained upward trend. It is important to note that significant external uncertainties and global developments may result in global supply chain realignments and a redirection of Asia–Europe trade flows, thereby reshaping regional and local logistics dynamics.

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IMD Business School Names TBC As Regional Financial Services Leader

The case study, entitled “TBC Group: Future-Proofing a History of Success”, examines TBC’s impressive rise and will be used by IMD as a teaching material, providing a key template of how to successfully scale a tech-enabled financial services business across emerging markets.The study outlines how TBC charted a path to become the leading financial services player in Georgia, before embarking on its international expansion, quickly establishing a strong retail banking presence in Uzbekistan and becoming Central Asia’s leading digital banking ecosystem. IMD also details TBC’s international expansion strategy, which is central to driving the Group’s further growth. Having achieved a dominant market position in Georgia, TBC explored opportunities to leverage its expertise and bring best-in-class digital financial services to more populous, high-growth and underserved emerging markets. Uzbekistan was chosen as the first market for overseas expansion, with the Group entering the country in 2019, where it has since built and continues to scale the region’s leading digital banking ecosystem.TBC Uzbekistan consists of three high-growth fintech businesses, with the digital bank reaching profitability just 2 years after launch - a record time for global digital banks. It now boasts 18.4 million unique registered users (nearly half of Uzbekistan’s population), is doubling its loan book year on year and made $41 million in net profit for FY 2024. TBC Uzbekistan is already a material contributor to TBC Group’s results, and its share is set to rise further. "We are thrilled that IMD has taken a keen interest in TBC and that it has produced this comprehensive study of our journey from a local bank in Georgia to an international digital banking powerhouse. It is a privilege for us to play a role in putting businesses in Georgia and Uzbekistan, both often-overlooked markets, on the global agenda. As our journey continues, we remain committed to our strategy of seeking out new opportunities for growth, while delivering sustainable profitable returns for our shareholders. Through TBC's London Stock Exchange listing, we offer the global community a chance to invest in our story, which I hope inspires IMD participants. Meanwhile, we will continue shaping TBC's future, including by starting to explore a new and exciting market”, - Vakhtang Butskhrikidze, CEO of TBC Bank Group said,k

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Shares of Georgian companies listed on the LSE increased in price

Lion Finance Group (BGEO LN) shares closed at GBP 56.90/share (+1.07% w/w and +6.75% m/m). More than 337k shares traded in the range of GBP 54.60 - 57.70/share. Average daily traded volume was 63k in the last 4 weeks. The volume of BGEO shares traded was at 0.76% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 44.10/share (+0.80% w/w and +7.30% m/m). More than 1.6mn shares changed hands in the range of GBP 43.05 - 45.40/share. Average daily traded volume was 176k in the last 4 weeks. The volume of TBCG shares traded was at 3.01% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 15.12/share (-0.53% w/w and +13.17% m/m). More than 425k shares traded in the range of GBP 15.04 - 15.76/share. Average daily traded volume was 95k in the last 4 weeks. The volume of CGEO shares traded was at 1.08% of its capitalization. 

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Non-residents spend approximately twice as much per transaction at hot...

In the leisure sector, particularly in hotels, spending grew by 13%, which was driven by non-residents’ increased spending. Non-residents spend approximately twice as much per transaction at hotels compared to residents.Regarding restaurants, in February 2025 an annual increase of 36% was observed. During the same period, the average non-cash transaction volume by non-residents in restaurants is approximately 4 times higher than the residents’ figure. In February 2025, consumers spent 14% more on apparel and accessories compared to the previous year. Notably, non-residents experienced a 48% increase in spending, although their overall impact is limited, due to their small share of total spending in the sector.

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