TBC Capital explains the reasons for the strengthening of the lari despite the political crisis

According to the agency, a Georgian wine marketing campaign is planned for this year, organized by Colangelo Partners with financial support from the National Wine Agency. The campaign focuses on increasing demand and sales in the U.S. market through strategic initiatives. In addition to ongoing activities, consumer-focused events will be enhanced to further popularize Georgian wine and engage American consumers.As part of the campaign, tasting seminars will be held in various U.S. cities for wine professionals and trade representatives. Georgian wine will also be showcased at international exhibitions, supported by targeted advertising and media campaigns. Additionally, wine tours to Georgia will be organized for media, sommeliers, and sales representatives to deepen their understanding and promote Georgian wine in the U.S. market.Colangelo Partners has been promoting Georgian wine in the U.S. since 2022 under a contract with the National Wine Agency. During this period, Georgian wine exports have shown steady growth. In 2024, exports reached 1.2 million litres—an increase of 32% compared to 2023.The U.S. remains one of the most lucrative markets for Georgian wine, with an average price of approximately six dollars per litre, reflecting its high quality and growing demand.

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According to Geostat, in 2024, a total of $20.2 million worth of pasta was imported into Georgia.TOP-3 Pasta Importing Countries in 2024: Russia - $9.71 million Italy - $3.63 million Turkey - $1.9 million As for pasta exports, in 2024, a total of $321 thousand worth of pasta was exported from Georgia, the main part of which ($183,660) was supplied to the Iraqi market.

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The resolution, supported by 101 members with 10 against, expresses deep concern over democratic backsliding and weakening human rights in the country. It highlights growing societal polarization and the adoption of legislation that contradicts Council of Europe standards.“Over the past two years has had an increasingly negative impact on local democracy in Georgia. This has intensified in the aftermath of the 2024 parliamentary elections, which were rejected by all opposition parties, as well as domestic and some international election observers, notably due to concerns over their integrity, and following the decision to halt Georgian EU accession on 28 November 2024,” the resolution reads.It also notes that “following the highly controversial adoption of the Law on Transparency of Foreign Influence and the Foreign Agents Registration Act (FARA) adopted in first reading, NGOs and dissenting voices in the media, which work under increasingly challenging conditions, have been increasingly subjected to intimidation and stigmatisation. This undermines their freedom of association and freedom of expression. In a democratic society, freedom of expression must be protected, supported and promoted irrespective of whether it is critical of the government, and even if it is influenced by international discourse.The brutal repression of peaceful protesters and opponents by law-enforcement authorities in many cities, and particularly in the capital city of Tbilisi, has violated both the freedoms of expression and assembly. Moreover, freedom of assembly in Georgia has been negatively affected by recent amendments to legislation that increase sanctions and offences related to public demonstrations, which according to the Venice Commission introduced “vague and broadly framed provisions, granting the authorities [including local authorities] excessively broad discretion in their application”. This situation has forced local authorities to take decisions that do not comply with democratic standards.The instrumentalisation of public institutions, including at local level, has resulted in numerous reports of dismissals, intimidation and pressure on civil servants. This has been facilitated by the adoption of amendments to the Law on Public Service.”It also addresses concerns expressed in recent reports by international and local observers “regarding the politicisation of public administration, widespread misuse of administrative resources and pressure on voters during electoral campaigns, which unduly tilt the playing field between candidates and distort the will of voters.”“The legal framework applicable to local elections in Georgia has been amended more than 20 times since the last elections, without extensive consultations and broad consensus. This is not in line with the principle of stability of electoral law. The amendments have moreover reinforced the dominant position of the ruling party in the Central Election Commission, undermining its independence, and have also wound back fundamental rules pertaining to the electoral system, gender quotas and the establishment of electoral districts.It notes with concern that these serious shortcomings and challenges affecting the respect of democracy, rule of law and human rights have led to a collapse in public confidence in democratic institutions for large parts of the Georgian population, and notably the young people, and damaged local democracy, which is not conducive to holding the 2025 local elections in a trust-based environment; in fact, it risks exacerbating the situation,” the document reads.

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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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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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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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According to the Georgian Parliament, during the visit, Nikoloz Samkharadze and the delegation met with several Serbian officials, including the Vice-Speaker of the Serbian Parliament, Chairwoman of the Foreign Affairs Committee Marina Ragush, and members of her committee, as well as Vice-Speaker Elvira Kovac, who chairs the European Integration Committee.The meetings focused on the friendly relations between Georgia and Serbia and explored various areas of cooperation. Both sides emphasized the importance of advancing diplomatic relations, particularly, to establish full-fledged embassies in both countries soon.Discussions also covered issues related to EU accession, the necessary reforms to achieve this goal, and the exchange of experiences. The parties welcomed the entry of the Serbian airline into the Georgian aviation market, which is set to commence regular flights on the Belgrade-Tbilisi route starting June 15.“Georgia and Serbia share numerous commonalities. First and foremost, we are both candidate countries for EU membership, and our foreign policy objective is to join the EU. It is important to highlight that both countries face challenges regarding territorial integrity and similar domestic political issues. We enjoy strong political relations and unconditionally support each other’s territorial integrity, which should foster closer ties. We hope that in the coming months, a Serbian embassy will be established in Tbilisi, while Georgia’s diplomatic mission in Serbia will transition into a full-fledged embassy. There is significant potential for growth in trade and tourism,” stated Nikoloz Samkharadze.The Chairman of the Foreign Relations Committee also extended an invitation to his Serbian counterparts for an official return visit to Tbilisi.During the visit, members of the Foreign Relations Committee engaged with representatives of Serbian delegations to the OSCE and the Parliamentary Assemblies of the Council of Europe, discussing cooperation between the two countries within the framework of these Parliamentary Assemblies. Meetings were also held with the Serbian Institute of International Politics and Economics analysts.The delegation includes Mariam Lashkhi, the First Deputy Chairman of the Foreign Relations Committee, and Irakli Mezurnishvili, a committee member.

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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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