IMD Business School Names TBC As Regional Financial Services Leader

Out of 19 banks operating in the market (including digital and microbanks), 14 received less than 1 million GEL from services.The sector had a higher figure in the same period last year - 108 million (-2%Y.Y).Systemic banks (BOGG, TBC, LB) have reduced commission income, as well as Basisbank. Out of TOP-5 profitable banks, only Credo income increased.The bank receives commission from various services, including loan, account services, as well as foreign exchange operations.With the latest changes, the National Bank of Georgia tightened the regulation and reduced the 2% marginal rate on refinancing to 0.5%.Banks with net commission income

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A former MFO’s investor earns up to 20 GEL in profit for every 100 GEL of capital.

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The state external debt amounted to $10.8 billion (GEL 30.4 billion), which is 32.1% of GDP. Of this, the government sector debt is $8.4 billion (GEL 23.5 billion; 24.8% of GDP), the National Bank's liabilities - $811.6 million (GEL 2.3 billion; 2.4% of GDP), and state-owned enterprise bonds and loans, respectively, are $439.6 million (GEL 1.2 billion; 1.3% of GDP) and $1.2 billion (GEL 3.5 billion; 3.6% of GDP).According to the NBG, the banking sector's external debt amounted to $8.3 billion (GEL 23.4 billion; 24.7% of GDP), the external debt of other sectors - $5 billion (GEL 14 billion; 14.8% of GDP), and intercompany debt - $2.7 billion (GEL 7.5 billion; 7.9% of GDP). 88.6% of the total external debt is denominated in foreign currency.Georgia's net external debt, as of December 31, 2024, amounted to $12.3 billion (GEL 34.5 billion), which is 36.4% of 2024 GDP. Of this, the net external debt of the public sector amounted to $6.4 billion (GEL 18 billion), which is 18.9% of GDP.In 4Q2024, the external debt of the National Bank of Georgia decreased by $50.4 million. Of this, the debt decreased by $33.2 million due to exchange rate changes and by $17.2 million due to operational changes. At the end of 2024, the total external liabilities of the National Bank amounted to $811.6 million. Of this, $453.2 million is allocated as Special Drawing Rights (SDR), which have no maturity date and, in practice, will not be required to pay as long as Georgia is a member of the International Monetary Fund.

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Rising wages have increased the purchasing power of the population, which has been reflected in an increase in spending on consumer products. Also, increasing urbanization in cities is increasing demand for the retail and consumer sectors.Shopping CentersEconomic activity in Georgia, and consequently, commercial real estate, is mainly concentrated in Tbilisi. There are 10 modern, multifunctional shopping centers in Tbilisi, with a total leasable area of ​​291,728 sq m. Batumi has 5 shopping centers with a total leasable area of ​​53,901 sq m. The shopping malls in Kutaisi, Zugdidi and Telavi are mainly a combination of shopping malls and open markets. A modern shopping mall was added to Zugdidi in 2023, featuring chain stores, international and local brands.According to TBC Capital, the average rent in Tbilisi shopping malls in 2024 was $24.1 per sq m, up 7.4% year-on-year. In the same period, the average rent in Batumi shopping malls was $23.1 per sq m, up 5% year-on-year. The positive dynamics were driven by the opening of new shopping malls and the positive economic trends in Adjara.In the coming years, new shopping malls will be added to Tbilisi, Batumi and Telavi. Among the shopping centers that are expected to open in Tbilisi in the future are Tbilisi Outlet Village, which will open in May of this year, and also the Children's World shopping mall, for which a construction permit was issued in 2024. In the coming years, two shopping centers will be added to Batumi: Orbi City and World Trade Center. In Telavi, a new shopping center will open in the fall of this year.

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According to the agency, 25 Georgian wines won medals at the TEXSOM competition in 2024.The success of Georgian wine in such a prestigious international competition indicates its reputation and high quality, as well as contributes to its worldwide promotion and sales growth. 50 Georgian wines and brands from various Georgian companies that are already sold in the US market were presented at the TEXSOM competition.The Texas Sommeliers Conference TEXSOM was founded in 2005 to raise professional standards and education for local sommeliers. The conference has since become one of the most important international events in the wine industry.Since 2014, the conference has been supplemented by an annual international wine competition, the jury of which includes wine professionals and sommeliers from different countries of the world.It is worth noting that the marketing company “Colangelo & Partners” has been promoting Georgian wine on the US market under a contract with the National Wine Agency since 2022. During this period, an increasing trend in the export of Georgian wine was observed. In 2024, exports reached 1.2 million liters, which was 32% higher than in 2023.

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In her speech, Turnava highlighted the importance of Georgia’s accumulative pension reform, describing it as a major step forward in ensuring both the social security of Georgian citizens and the country’s economic stability.She also emphasized the expanding supervisory role of the National Bank of Georgia, which, starting May 1, 2025, will oversee not only the investment activities of the Pension Fund but also its administrative, operational, and other functions.“Our primary objective as a supervisor is to establish a reliable regulatory environment that ensures the security and effective management of pension fund participants’ savings. The Pension Agency has successfully fulfilled its legal obligations to date, and we are confident that this positive trend will continue,” said Turnava.As part of the event, the Pension Agency hosted panel discussions on key topics related to investment governance. One such panel, “Good Governance Framework,” featured Ekaterine Mikabadze, First Vice Governor and a Board Member of the National Bank of Georgia, who spoke about the importance of effective governance.Notably, the assets of the Pension Fund now exceed GEL 6 billion, with investment returns surpassing GEL 1.4 billion-a testament to the fund’s investment activities. 

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During the voting session, Speaker of Parliament Shalva Papuashvili stated, "A law identical to the American standard has been adopted."The final version of the law is titled the "Foreign Agents Registration Act." Alongside it, amendments to the Criminal Code have also been approved.The law regulates the registration of entities as foreign principals’ agents, with its enforcement assigned to the Anti-Corruption Bureau.Under the Georgian Dream-proposed legislation, the terms foreign principal’s agent and foreign power are defined. The bill regulates the following issues: The process for applying for registration as a foreign principal’s agent and ensuring the transparency of related documents. The obligation for registered foreign principal’s agents to submit an annual financial declaration. The procedures for deregistering an entity as a foreign principal’s agent. The monitoring process to identify foreign principal’s agents and verify compliance with the law’s requirements.Failure to register as a foreign principal’s agent or non-compliance with the law’s provisions will result in criminal liability.

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As announced on 30 September 2021, the EBRD and IFC entered into a joint venture with TBC PLC in relation to TBC PLC’s wholly owned Uzbek subsidiary, TBC Bank (“TBC UZ”), to support its continued growth. Under the terms of those arrangements, TBC PLC retained 60% ownership of TBC UZ and each of the EBRD and IFC acquired 20% of TBC UZ. That joint venture has been regulated by a shareholders’ agreement which contained customary board and shareholder reserved matters. Under the terms of the joint venture, the EBRD and IFC also entered into an option agreement with TBC PLC which provided for a put option for EBRD and IFC and a call option for TBC PLC.TBC PLC, the EBRD and IFC today have agreed a re-organisation of these arrangements under which both TBC UZ and Payme JSC, 100% subsidiary of TBC PLC and the country’s leading payment app, will be 100% owned by TBC Digital. TBC PLC will own 79.7% of TBC Digital and each of the EBRD and IFC will own approximately 10.15%. The governance arrangements that have previously been in place in respect of TBC UZ will be terminated and largely replicated for TBC Digital. In particular, there will be a new shareholders’ agreement between TBC PLC, the EBRD and IFC, which will contain customary board and shareholder reserved matters.In addition, the EBRD and IFC have also entered into a new option agreement with TBC PLC. This provides, among others, that each of the EBRD and IFC may exercise a put of their respective shares in TBC Digital to TBC PLC following the fifth anniversary of the new arrangements. The put option would be settled by the issue of new shares of TBC PLC or, to the extent that was not practicable, in cash. TBC PLC will also have a call option from the eighth anniversary of the new arrangements pursuant to which it would be able to acquire for cash any shares in TBC Digital held by the EBRD and IFC at that time.The new arrangements will come into effect after completion of the applicable registration requirements, which is expected to be within the next three months.Vakhtang Butskhrikidze, CEO of TBC Bank Group, commented:"We are grateful to our partners at the EBRD and IFC for their unwavering commitment to the success of TBC Uzbekistan, our fast-growing digital banking business.They are an integral part of our story in Central Asia’s most populous nation, where TBC is driving the expansion of digital banking in the region and has achieved remarkable results since operations commenced nearly 6 years ago.The establishment of TBC Digital as our new holding company will unlock additional synergies, enhance governance and create more value for our shareholders.It will further support TBC’s fast and sustainable growth in the country, driven by our stellar team led by Nika Kurdiani as CEO of TBC Uzbekistan."Francis Malige, EBRD’s Managing Director for Financial Institutions, commented: "We are excited to embark on this new chapter with our long-standing partners, TBC PLC and IFC. TBC Digital will consolidate all Uzbek operations, streamline the governance, and unify the digital-first strategic objectives.The next phase will focus on scaling up financial services to retail customers, small and medium-sized businesses and individual entrepreneurs.Recently, TBC introduced the country’s first fully digital banking services tailored for SMEs. Improved access to finance through user-friendly digital tools and a paperless onboarding process is critical for fostering a dynamic and inclusive financial ecosystem for SMEs in Uzbekistan.TBC Uzbekistan has emerged as a transformative player, demonstrating the viability of digital banking in a reforming economy. Its success underscores the importance of customer-centric innovation, acting as a catalyst for the sector-wide modernisation.  The bank's trajectory shows that agility and digital adoption are critical for success in evolving markets.”Momina Aijazuddin, IFC Regional Industry Head, Financial Institutions, said:“IFC is committed to fostering digital financial inclusion and sustainable economic growth in Uzbekistan. By consolidating TBC Uzbekistan's operations under TBC Digital, we leverage the advantage of digital services to expand access to finance for individuals, medium, small, and micro businesses across the country.We believe that this move will enhance TBC’s ability to provide innovative financial solutions and to further support the economic development of Uzbekistan.”

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