Finance Minister Rejects Allegations of Georgia’s Involvement in Sanctions Violations

Lion Finance Group (BGEO LN) shares closed at GBP 96.45/share (+0.05% w/w and +5.24% m/m). More than 163k shares traded in the range of GBP 92.90 - 98.75/share. Average daily traded volume was 52k in the last 4 weeks. The volume of BGEO shares traded was at 0.38% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 40.45/share (+1.38% w/w and unchanged m/m). More than 390k shares changed hands in the range of GBP 38.40 - 41.20/share. Average daily traded volume was 63k in the last 4 weeks. The volume of TBCG shares traded was at 0.70% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 32.70/share (-1.95% w/w and +7.74% m/m). More than 441k shares traded in the range of GBP 30.80 - 33.60/share. Average daily traded volume was 69k in the last 4 weeks. The volume of CGEO shares traded was at 1.27% of its capitalization. 

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Following the sale, Lazard’s total voting rights are represented by 1,690,027 shares. However, the ownership is entirely indirect, as per DTR5.2.1 reporting requirements.While the transaction details do not specify the beneficiaries, the shares are likely not economically owned by Lazard itself, as the company acts as an asset manager.It is assumed that the shares belong to Lazard’s clients - including funds, mandates, or institutional investors - while voting rights have been delegated to Lazard.

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Across the city, primary market transactions rose by an average of 13.1%, and secondary market prices increased by 8.2%. In December 2025, a total of 4,495 residential apartment transactions took place in Tbilisi, marking a 12.7% increase compared to the previous year. The market size grew 21.8%, reaching $350 million.For older apartments, the average weighted price increased 12.3% in the suburbs, 7.7% in the wider center, and showed a slight 0.1% decrease in the city center compared to December 2024.Transaction volumes in new projects rose 15.4% year-on-year. On the primary market, new apartment transactions increased 10.4%, while secondary market transactions grew 24.3%. In older projects, transaction numbers increased by 2.9%.

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Newly constructed apartments saw a 44.2% rise in transactions, while existing units increased by 15.8%. On the primary market, first-time sales jumped 75.2%, whereas secondary market transactions grew 18.2%. Of the primary market sales, 170 transactions were registered by the state. The growth in the secondary market was driven entirely by foreign buyers, with no increase in local buyers.The weighted average price of newly built apartments in Batumi increased 15.4% to $1,231 per square meter. The primary market drove most of the price increase, rising 24.2%, while the secondary market saw a 10.7% increase.It should be noted that some primary market transactions are registered late, so the reported price trends may not fully reflect real-time changes.

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“This process may lead to specific decisions, including legislative amendments. The ongoing work already provides insights, and the process will continue until the end of April at the latest,” Kobakhidze said.The Prime Minister emphasized that the issue is complex and requires detailed assessment to ensure that any measures are well-founded and effective.The goal of the review is to implement real solutions for stabilizing prices across all sectors, based on thorough analysis rather than immediate or reactive decisions.

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The residential property price index covers only the Tbilisi market and pertains solely to new residential properties, including both multi-storey apartment blocks and private houses.Data from GeoStat indicates that in the fourth quarter of 2025, prices rose by 1.3 per cent in both the apartment segment and the private house segment compared to the previous quarter. Additionally, private houses experienced a 2.1% increase.Year-on-year, both segments saw price growth: apartments by 3.5 per cent and private houses by 2.5 per cent compared to the same quarter in 2024.Regarding the price per square metre in the apartment sector, the most expensive district remains Mtatsminda, where the average price per square metre is 6,738 GEL. Vake follows, with apartments costing 5,874 GEL per square metre. Other notable districts include Chugureti at 4,353 GEL, Saburtalo at 4,313 GEL, Krtsanisi at 4,181 GEL, Didube at 4,054 GEL, Nadzaladevi at 3,978 GEL, Isani at 3,854 GEL, Gldani at 3,731 GEL, and Samgori at 3,549 GEL.In the private houses segment, the highest price per square metre is also in Mtatsminda, at 4,594 GEL. Vake follows at 4,311 GEL, with Saburtalo at 3,504 GEL, Didube at 3,369 GEL, Samgori at 3,121 GEL, Isani at 3,110 GEL, Chugureti at 3,088 GEL, Gldani at 2,985 GEL, Krtsanisi at 2,830 GEL, and Nadzaladevi at 2,660 GEL.

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The bonds are denominated in US dollars. The placement agent is G&T.The bonds do not have a credit rating (issuer rating: BB / stable outlook from Fitch Ratings, Ba2 / negative outlook from Moody’s).The issuer also plans to list the securities on the Georgian Stock Exchange.

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TBC Capital highlights that the improvement in the current account is mainly driven by growth in services exports, particularly in the information and communication sector.Additionally, slower import growth and increases in remittances and tourism revenues support the surplus. Including reinvestments, the current account deficit is projected at 2.7% of GDP in 2025, the lowest level recorded to date.Economic growth slowed in the second half of 2025, in line with expectations of normalization around long-term trends. For 2026, the Russia-Ukraine war remains a significant factor, with both positive and negative potential impacts on Georgia’s economy. TBC Capital’s baseline scenario projects real GDP growth of approximately 4.5% for 2026.Regarding the lari, three main factors supported appreciation in 2025: global dollar weakness, increased net foreign currency inflows, and reduced domestic demand for foreign currency, reflected in higher lari deposits and growing dollarized loans. The National Bank reportedly purchased $2.5 billion in 2025, resulting in total foreign exchange reserves of $6.2 billion and net reserves of $3.2 billion.TBC Capital notes that the lari is still undervalued against the dollar and trade partners, supporting potential further appreciation. However, a post-war scenario could temporarily reorient currency flows, which may exert short-term pressure. Considering reserve levels and the central bank’s policy to limit excessive exchange rate fluctuations, the lari is expected to depreciate only slightly in 2026.Inflation slowed from November, reaching 4% year-on-year in December 2025. TBC Capital projects inflation to rise at the start of 2026, then gradually slow from March, reaching 3.5% by year-end. Key risks include possible increases in electricity tariffs and food prices in the spring, which could affect the inflation trajectory.

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