Price of Georgian corporate Eurobonds changed in different directions

The commission will consider free of charge the complaint submitted by the payment service user against commercial banks (including digital banks), microbanks, registered payment service providers and microfinance organizations.Complaints may refer to unauthorized (performed without the user's consent) and improperly performed payment operations, violation of their execution period, incorrect deduction of the payment operation fee, and other similar cases related to electronic payments.In addition to resolving the dispute in favor of one of the parties, taking into account the agreement of the parties, the commission also completes the dispute through settlement. The decision of the commission is binding.The commission will consider the dispute in no more than 90 calendar days. Considering the complexity of the case, the deadline may be extended by no more than 30 calendar days.The creation of the dispute resolution commission as an alternative mechanism for dispute resolution in the field of payments is related to the commitment taken by Georgia under the Association Agreement with the European Union.

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Garibashvili noted Georgia had successfully maintained economic stability despite “challenges of regional and global scale” due to his Government’s “consistent and effective” economic policies.“Our Government focuses on enhancing the competitiveness of our private sector, integrating the country into global value chains, upholding a business-friendly environment and efficiently leveraging the nation's transit and renewable energy potential”, he said.Garibashvili said it was “gratifying” to see CAREC's key policy directions were “closely” aligned with Georgia's aspiration to serve as a regional hub offering a “simplified and accelerated” trade and transport route between Europe and Asia.Speaking about the Middle Corridor, a transportation route network connecting China with Europe through the South Caucasus region, the Prime Minister stressed the importance of implementing large-scale infrastructure projects to ensure its “smooth” operations.“As the significance of the so-called Middle Corridor is growing as a stable and secure alternative to traditional routes, we are committed to implementing large-scale infrastructure projects to facilitate the improvement of transportation and logistic connections”, he said.The PM added the large-scale projects included the development of a new deep sea port in western Georgian seaside town of Anaklia, the Black Sea submarine electricity cable project, intended to connect the grids of the South Caucasus and European Union member states, railway modernisation project and construction of a new international airport in Tbilisi.The Georgian PM said “numerous barriers” still impeded swift movement of goods, vehicles and individuals among CAREC countries.“The seamless functioning of the Middle Corridor necessitates the establishment of joint checkpoint infrastructure enabling simultaneous border crossings between neighbouring countries through a one-stop principle. This approach aims at minimising the costs of transporting goods and maximising the effective utilisation of latest technological advancements”, he said.The Conference is being hosted in Tbilisi for the first time, with senior officials from countries across central and west Asia and Masatsugu Asakawa, the President of the Asian Development Bank, in attendance.

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As of the document, in October 2023, compared to the same period of the previous year, the estimated real growth in the following activities contributed significantly: Financial and insurance activities, Wholesale and retail trade; repair of motor vehicles and motorcycles, Transportation and storage.Declines were registered in Manufacturing and Real estate activities.

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“Our common priorities include promoting clean and renewable energy and transport, and improving energy efficiency in public buildings. Together we are also improving air quality, better managing water resources, preserving forests and protected areas, addressing waste and industrial pollution. All those actions reflect our shared commitment to protect the environment and address climate change. Georgia is home to the first commercial wind farm in the Caucasus.And, the EU is supporting the modernisation of the Enguri hydropower station, which produces around 40% of all electricity used in Georgia. Our joint efforts ensure a better-protected environment and improved the quality of life and health for the people of Georgia. Climate change knows no borders. By continuing to work together, we can drive real change and secure a better future for all. Each person's actions matter in shaping the future”, - he said. 

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Meeting was focused on the cooperation with the ADB and notably in various sectors of the economy. According to the Head of Government, Georgia treasures the ADB portfolio, which consists of 18 investments in the total value of 1.9 BLN USD, while the overall ADB portfolio is 4.5 BLN USD.Dignitaries reviewed the current economic stance of the country, along with its fiscal and budget parameters. It was noted that it is vital to maintain the positive trend that the country achieved in 2023 and evidenced in the economic growth indicator. According to Irakli Garibashvili, the empowered private sector is decisive for economic advancement and ADB plays a crucial role in this process.It was also noted at the meeting that the Government of Georgia invests in reforms to simplify doing business and to implement infrastructure projects. As a result, it leads to the identification of the potential borne by the country as a transit, logistics, tourism and business hub.The Prime Minister of Georgia thereby highlighted that it is a milestone achievement for Georgia to host the Annual Meeting of the ADB in 2024.Meeting held within the Government Administration was attended by Rachel Thompson, Executive Director and Member of the Board of Directors at the ADB; Eugenue Zhukov, Director General of the Central and West Asia Department at the ADB; Lesley Bearman Lahm, Resident Representative of the ADB in Georgia; Revaz Javelidze, Head of Government Administration.

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The Ministry said Karseladze shared information about “important projects” for the development of road and water supply infrastructure throughout the country. The body added the parties also talked about ongoing projects supported by the AIIB.The progress of the development of the East-West international highway passing through Georgia and plans of “various infrastructure projects” to be implemented in 2024 were “highly appreciated” by the visiting official, said the Ministry.Georgia is a founding member of the AIIB and has been a client since 2017. 

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The airports body said the preparatory project involved conceptual and schematic design of the airport, planning of the building and environs as well as preparation of building exteriors with at least three views, internal space planning, building interior and exterior, landscape renderings and more.The body noted participants in the open electronic competition could include both Georgian and foreign companies with at least three years of experience in designing and completing project documentation for multipurpose public buildings with areas of more than 4,500 square metres.It also added the participants were required to have an employee with 10 years of experience as an architect and having designed at least one multifunctional public building.Georgian Prime Minister Irakli Garibashvili in September announced his Government had allocated about GEL 25 million ($10 mln) for the construction of a “new and modern” airport on the site of an existing airfield in Telavi.Garibashvili said design and construction of the new facilities would be launched this year, with the total cost of the project reaching GEL 30 million (about $12 mln). He added the project involved extending the runway to 1,700 metres, installing modern navigation systems, renovating the "entire infrastructure" and adding new parking spaces.

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As of the decision of the Financial Stability Committee, banks are required to accumulate a neutral countercyclical buffer according to the following schedule: by March 15, 2024 - 0.25 percent, by March 15, 2025 - 0.5 percent, by March 15, 2026 - 0.75 percent, by March 15, 2027 - 1 percent. Additionally, the Monetary Policy Committee reduced the upper limit of the reserve norm on short-term foreign currency liabilities from 25 percent to 20 percent. This change will provide the local market with additional liquidity in foreign currency and more flexibility for buffer accumulation, which will somewhat mitigate the impact of global tightening financial conditions on the financial sector, and as a result, improve access to finance.The financial system of Georgia maintains stability and continues to provide loans to the economy without interruption. As of October 2023, banks have healthy capital and liquidity ratios. Compared to last year, the quality of assets has also improved. In October 2023, the annual growth of loans, excluding the effect of the exchange rate, amounted to 16.2%, which is largely due to the growth of business loans. According to the data of the third quarter of 2023, the ratio of loans to the gross domestic product continues to lag behind the long-term trend, however, compared to the beginning of the year, the negative gap of the ratio of loans to GDP is relatively reduced, which is a reflection of the normalization of high economic growth and sustainable credit activity. According to the committee's assessment, if the current trend of credit activity and economic growth is maintained, it is expected that the ratio of loans to GDP will approach its long-term trend in 2024. Therefore, at the current stage, there is no need to change the cyclical component of the capital countercyclical buffer.In order to reduce the structural risks caused by the high level of dollarization, the National Bank, in cooperation with the banking sector, continues to actively work on a long-term plan. The high level of dollarization and related risks remain an important challenge for the Georgian financial sector. In order to mitigate the risks, the NBG takes planned steps. The limit on unhedged foreign currency loan was increased to 300,000 GEL at the last committee. In order for the reduction of structural risks to continue irreversibly in the future, the NBG, in agreement with the banks, will gradually increase the limit taking into account the current macroeconomic environment and risks.

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