Pension Fund Assets Grow to 8.8 Billion GEL, but March Closes in the Red

According to the head of government, the decision was made as a result of active consultations with the business sector. The reasons were the interests of the private sector and the possible impact of the regulation on consumer prices.“Plastic consumption harms both human health and the environment... However, at the same time, we must take into account the side factors related to this process, including the subjective interests of business, as well as the possible impact of specific regulations on consumer prices,” Irakli Kobakhidze said.Changes and current regulationsAccording to the original plan, the production (except for export), import and sale of beverages in plastic bottles were to be banned from February 1, 2027. According to the decision, this deadline was extended by 4 years.Nevertheless, other parts of the regulation remain in force: From July 1, 2026: public catering establishments (restaurants, canteens, kiosks, transport) will be prohibited from serving beverages to customers in plastic bottles. Already valid ban: The delivery of ready-made food in disposable plastic containers and cups is prohibited. It is worth noting that the restrictions do not apply to products intended for export and packaging for packaged food. According to the Prime Minister, the process of reducing plastic consumption will continue in stages.

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According to him, over the past few months, a serious optimization of state expenditures within the framework of existing agreements has been carried out in various directions. Along with other agreements, the agreement related to the deepening of the Anaklia deep-sea port and the construction of a breakwater, as well as the contract with the supervisory company, has been revised.According to the Prime Minister, as a result of the changes made, the cost of the project has been reduced by more than 25%, which saved the state budget $52.5 million. Irakli Kobakhidze thanked the Minister of Economy and his team for their work and noted that the construction process in Anaklia will be actively resumed in the coming days with significantly reduced costs.The Anaklia Deepwater Port project is one of the most ambitious geopolitical and economic initiatives in the history of Georgia’s independence. Its idea is based on the country’s strategic location and aims to transform Georgia into a key link in the “Middle Corridor” connecting China and Central Asia with Europe. Unlike traditional ports, Anaklia’s main advantage is its depth, which will allow the country to receive large-capacity, so-called Panamax-type ships for the first time in history.The active phase of the project began in 2016, when the Anaklia Development Consortium (ADC) won the tender. The consortium, headed by Mamuka Khazaradze and Badri Japaridze, included TBC Holding Anaklia, American Conti International, Dutch Van Oord PPP International, British Wondernet Express, Bulgarian G-Star, and investor Bob Meyer.Construction work began in 2017 and included large-scale dredging of the seabed. According to the original plan, the port was supposed to receive the first ship in 2020, but the process was soon delayed. The main obstacle was related to attracting financing from international banks and additional guarantees required from the state, which was accompanied by a legal dispute against the founders of the consortium.In January 2020, the Georgian government officially terminated the contract signed with the consortium. The state cited non-fulfillment of obligations as the reason, while the consortium accused the government of obstructing the project. Both disputes in international arbitration on this case ended in victory for the state, and the consortium's claim for multi-billion dollar compensation was not satisfied.After the termination of the contract, the state decided to continue the construction of the port with its own funds, where the controlling, 51% stake would remain in the ownership of the state, and only 49% would be transferred to the investor.On May 29, 2024, the government announced that the Chinese-Singaporean Consortium (CCCC) had been selected as the private partner, although, as of this time, an official investment agreement had not yet been signed with them.Currently, marine construction work has resumed at the site and is being carried out by the Belgian giant Jan De Nul. The first phase of the project will see the port deepen to 16 meters. According to the updated plan, the Anaklia Deepwater Port will receive its first ship in 2029, which will significantly increase Georgia's cargo turnover and its influence in the international logistics chain.

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According to Kobakhidze, the changes began in September of last year, after the company's management was changed.As a result of the implemented and ongoing optimization, more than GEL 3.5 million will be saved annually, and the return of business processes transferred to intermediary companies will increase the company's income by GEL 14.2 million annually.In addition, the air terminal function has been restored and the process of signing agreements with new airlines is underway. Renewing terms with existing partners has saved terminal service costs and reduced transit times, as a result of which Georgian Post will receive an additional income of more than GEL 5 million annually.“As a result of all these changes over the past 5 years, Georgian Post will be profitable for the first time. You can see how fundamental the changes that have been and are being implemented are,” the Prime Minister said.

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According to the plan, the state will make large-scale investments to renew the rolling stock. In particular, it is planned to: Purchase 50 new locomotives and 1,500 carriages Purchase 10 new passenger trains, which will allow the company to perform all mainline flights with new trains Implementation of modern railway systems to improve operational processes New directions and reduced travel timeAccording to the Prime Minister, the Tbilisi-Kutaisi direction will be added to the railway. In addition, several important projects will be completed in August: Tbilisi-Batumi: As a result of the rehabilitation, travel time will be reduced by 1.5 hours and will become 4 hours instead of 5.5 hours Tbilisi-Akhaltsikhe: A flight canceled since 2009 will be restored. Travel time will be halved and will be 3 hours instead of 6 Rehabilitation of the historical "Kukushka" The government has decided to completely rehabilitate the Borjomi-Bakuriani historical train, the so-called "Kukushka". The project includes the renovation of both the train and the railway infrastructure and 5 stations."This line has also been stopped since 2020, and according to the plan, the train will serve our citizens and guests of our country from January next year. The restoration of this railway line is also of great importance from a tourist point of view," noted Irakli Kobakhidze

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As Natia Turnava noted during her speech at the briefing, she is pleased that the IMF mission has positively assessed Georgia’s monetary and fiscal policies."The IMF noted that the country's monetary policy is prudent, which is most important in a challenging global environment. It also highlighted Georgia's high economic activity and improved external position. As you know, the current account deficit was historically low, amounting to 2.6% of GDP in 2025. For us, the National Bank, this means that there are still favorable conditions for the continuation of the accumulation of international reserves. There are also strong foreign exchange inflows through various channels, including trade. The IMF also noted in its review that last year foreign exchange reserves reached a record high and for the first time since 2022, the volume of international reserves exceeded the 100% adequacy threshold last year," Natia Turnava noted.She also spoke about inflationary expectations and emphasized that sentiments are well managed in terms of inflationary expectations. According to her, at the same time, it is necessary to take into account the ongoing hostilities in the Middle East, which caused high volatility in international commodity markets, including the Georgian market, and disruptions in logistics chains, which is an additional pressure on prices."This is an additional inflationary shock, the strength of which will depend on the duration of the conflict and the stabilization of oil prices in the international market. Therefore, this is a challenge that we must respond to with cautious and effective monetary policy steps, for which we are ready," added the President of NBG.According to Natia Turnava, one of the issues discussed within the framework of the IMF mission's visit was the improvement of the governance of the National Bank. According to her, according to the IMF's assessment, the recommendations of the IMF in terms of governance improvements have been partially implemented by the Georgian government, while work is underway on the rest.

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The IMF said inflationary pressures have increased since the outbreak of the conflict in the Middle East, but core inflation remains low. Inflation was 4% at the end of 2025 and reached 4.3% in March 2026, reflecting rising prices for imported food and oil, partly due to the ongoing war in the Middle East. At the same time, core inflation remains below the National Bank of Georgia’s (NBG) 3% target.According to the IMF’s forecast, inflation will remain high in the first half of 2026, driven by rising fuel and electricity prices, and will return to the target by mid-2027, as the effects of one-off increases in food and energy prices are offset, demand declines moderately, and the output gap closes.In line with the IMF’s recommendation, monetary and exchange rate policies should remain focused on ensuring that inflation returns to the target in a sustainable manner. “While the current policy framework accommodates temporary supply-side shocks, the National Bank of Georgia has rightly signaled its readiness to tighten policy if inflationary pressures persist, second-round effects emerge, or inflation expectations become fixed”.The IMF also responds to the interventions, noting that exchange rate flexibility should be maintained and foreign exchange interventions should be limited to mitigating episodes of excessive volatility. They also say that, where possible, continuing to accumulate international reserves would further strengthen precautionary buffers in the face of Georgia’s high dollarization.Progress on the governance reform of the National Bank of Georgia remains important to strengthen institutional safeguards. The financial institution says most of the recommendations of the IMF’s 2022 Security Assessment have already been implemented, including the removal of discretionary transfers to the government, and IMF technical assistance has facilitated further progress.“Steps have already been taken, including the redistribution of responsibilities among executive members and the strengthening of the succession system for the President of the National Bank, which is positively assessed. The authorities also plan to reform the mechanisms for collegial decision-making and the qualification requirements for Board members. Further strengthening of the Board’s oversight mechanisms is important to ensure that the National Bank’s governance framework is fully consistent with international best practices,” the IMF said.It should be recalled that the monetary policy was set at 8% in May 2024 under the previous President of the National Bank, Koba Gvenetadze, and since then, under the current President, Natia Turnava, the Committee has not changed its decision.

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The main requirement is to prove at least 2 years of work or economic activity experience in the IT sector. In addition, a minimum salary threshold has been established - a person must prove that his annual salary is not less than $25,000 (equivalent in GEL) in the last 1 year, based on the income received in the same sector.In addition, the submitted documentation must confirm that he received the salary at least twice during the last 1 year, with an interval of at least 30 days.The full list of documents required to obtain a residence permit is as follows: Application: Application in the prescribed form, indicating the unique code assigned by the State Employment Promotion Agency Identity documents: Copies of the alien's travel document and a document confirming legal stay in Georgia Experience and income certificates: Documents confirming 2 years of work experience in the IT field and an annual income of $25,000 Work permit: Decision on granting the right to work Technical details: Color photo (3/4, in electronic form) and receipt for payment of the service fee. 

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According to the Finance Minister, the title of a bank is an incorrect definition for this instrument. According to him, the presentation of this structure will clarify what mandate this fund will have and what functional load it will have.Alejandro Hagenberg, the head of the International Monetary Fund mission, stated at today's summary briefing regarding the institution that "such an institution exists in many countries, there are also very bad examples in the world, and it is important that it is done correctly if it is to be done. There must be logic in the existence of a development institution - the transparency of this bank will be important".A development bank is a financial institution created by the state or with the participation of the state, the purpose of which is to provide long-term and preferential financial resources to strategic sectors - infrastructure, industry, export, energy, agribusiness and small and medium-sized businesses.In world practice, such institutions play an important role in stimulating economic growth. For example, in Germany, KfW operates, which has become one of the main financial instruments for the country's reconstruction after World War II. In Brazil, BNDES operates, which plays a leading role in financing industry and large infrastructure projects.The idea of ​​establishing a development bank in Georgia has been discussed periodically at the economic policy level for years, especially when the private banking sector has been talking about a shortage of long-term and low-interest resources. The issue becomes active during periods of economic slowdown, regional challenges, or the need to finance large infrastructure projects.Supporters of the initiative say that the development bank will contribute to: Financing long-term investment projects Export growth Support for local production Development of strategic infrastructure However, critics point to risks, including politicization, ineffective management, and the possibility of increasing public debt. International experience shows that the success of such an institution largely depends on transparent governance, a clear mandate, and strong oversight mechanisms.

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