Tbilisi Hosts Central Bank Governors from the Region

It is noteworthy that this was the first time an event of this format was held in the region in partnership with J.P. Morgan.Georgian Prime Minister Irakli Kobakhidze opened the meeting. In his address, the Head of Government emphasized the significance of a gathering of this scale and discussed the country's economic growth figures and the development dynamics of the financial sector. He also highlighted the financial sector's role in economic progress and the growing international recognition of Georgian financial institutions.He stated that the Government of Georgia continues to work on developing capital markets and creating an increasingly competitive environment for investment.A key topic of the meeting was the regional macroeconomic environment and the challenges facing monetary policy. Participants discussed global economic shifts and shared experiences regarding the maintenance of price and financial stability. Dedicated sessions focused on asset and international reserve management amidst geopolitical challenges, as well as prospects for developing local capital markets.The event aims to deepen cooperation among the region's central banks, facilitate the exchange of experience, and foster effective responses to shared challenges."It is highly significant that we are hosting the first event of this kind in the region. It is particularly gratifying to see so many colleagues in Tbilisi representing nearly 15 central banks, development organizations, and the financial sector. Such meetings are valuable not only because they allow us to exchange views on pressing issues that shape our economies' development, but also because they create opportunities for open dialogue, mutual learning, and the strengthening of ties between our institutions," noted Natia Turnava, Governor of the National Bank of Georgia. The event was attended by governors, deputy governors, and other high-ranking officials from the central banks of up to 15 countries, including Hungary, Poland, Bosnia and Herzegovina, Armenia, and Kazakhstan, as well as representatives from J.P. Morgan, the World Bank, and the Asian Development Bank.

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The percentage change in the GDP deflator stood at 3.0 per cent for Q2 2026.GeoStat reported that key positive drivers of economic expansion during the second quarter included information and communication (16.6 per cent), wholesale and retail trade alongside motor vehicle and motorcycle repair (8.0 per cent), transportation and storage (19.8 per cent), arts, entertainment and recreation (17.4 per cent), manufacturing (7.3 per cent), and human health and social work activities (15.0 per cent).Conversely, notable contractions were recorded in construction (-4.8 per cent) and agriculture, forestry, and fishing (-3.5 per cent).According to the agency’s report, wholesale and retail trade alongside motor vehicle and motorcycle repair accounted for the largest share of GDP by economic sector at 14.9 per cent, followed by real estate activities at 9.1 per cent. Subsequent shares were held by manufacturing (8.9 per cent), information and communication (7.6 per cent), public administration and defence including compulsory social security (6.5 per cent), construction (6.5 per cent), agriculture, forestry, and fishing (6.4 per cent), education (6.4 per cent), and transportation and storage (6.3 per cent).

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This award recognizes ADB’s active and successful collaboration with its partner bank in Georgia under the Trade and Supply Chain Finance Program. The evaluation criteria were based on the number and volume of transactions executed by the bank within ADB's TSCFP framework.Receiving the "Leading Partner Bank in Georgia" award highlights Basisbank's strong market standing in facilitating international trade, its high credibility among international financial institutions, and its significant contribution to the country’s economic development.“Basisbank's recognition as Leading Partner Bank in Georgia reflects the strength and consistency of our collaboration under the Trade and Supply Chain Finance Program. Basisbank has been an active and reliable partner in extending trade finance to businesses across Georgia, helping close market gaps and connect local companies to international supply chains. We congratulate Basisbank on this achievement and look forward to continuing to grow our partnership in support of sustainable trade growth in the years ahead”, - Steven Beck, Head of Trade and Supply Chain Finance Program, Asian Development Bank“It is a great honor to receive the ‘Leading Partner Bank in Georgia’ award from the Asian Development Bank. This recognition reflects the tangible progress we have made in delivering Basisbank’s strategy to expand its trade finance capabilities and strengthen support for clients engaged in cross-border trade. Our long-standing partnership with ADB enables us to provide Georgian businesses with internationally aligned financial instruments, facilitate their access to global supply chains and new markets and support more efficient cross-border transactions. We are grateful to ADB for this productive partnership and remain committed to further expanding our capacity to serve our clients and contribute to Georgia’s economic growth”, - David Tsaava, General Director of Basisbank.The ADB’s Trade and Supply Chain Finance Program annually honors partner banks that deliver excellence in trade and supply chain finance and contribute to the development of sustainable economic progress across the region and globally.About Basisbank GroupIn April 2026, Basisbank acquired a 95.99% stake in Liberty Bank. Basisbank Group is the third-largest systemic financial institution in Georgia, holding an 11% market share. The Group serves over 2 million individuals and more than 65,000 corporate and SME clients. It boasts the largest network nationwide, operating around 500 service centers and nearly 700 ATMs across all regions and municipalities of Georgia.According to data from the first 7 months of 2026, Basisbank Group's total assets stand at GEL 12.1 billion, with a total loan portfolio of GEL 7.9 billion and a deposit portfolio of GEL 9.1 billion. The Group's net profit for the first 7 months of 2026 reached GEL 128 million.About TSCFPBacked by ADB's AAA credit rating, TSCFP delivers guarantees and loans through more than 200 partner banks to support trade and create import and export opportunities for businesses. The program is a key partner in helping diversify trade both internationally and intra-regionally within Asia and the Pacific. Since 2009, it has supported over $74 billion in trade, focusing on sectors that promote sustainable growth and regional integration.About ADBADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members-49 from the region.(R)

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He noted that while last year also saw a high yield, this year’s figures are set to reach record levels."Preliminary forecasts indicate a record harvest this year; last year’s yield was also very high, but this year’s figure will be an absolute record. We are prepared for this in advance, including in terms of subsidies," Kobakhidze stated.According to the Prime Minister, the Ministry of Environmental Protection and Agriculture is managing the organization of the harvest, and the necessary preparatory work has already been completed.

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The head of government explained that the suspension of the Namakhvani HPP project was the result of "direct sabotage" that took place several years ago, involving non-governmental organizations funded by specific sources and electricity-importing companies. According to Kobakhidze, the state was weaker at the time while foreign agent networks were strong; however, the situation today is radically different, and such processes cannot happen again.The dispute gained momentum following a decision issued on September 11, 2026, by the U.S. District Court for the District of Columbia (Judge Amit P. Mehta). A U.S. federal court in Washington has authorized the enforcement of an international arbitration award requiring the payment of $297 million in principal compensation, up to $52.4 million in tax compensation and additional interest (SOFR + 4%) to the Georgian company Enka Renewables LLC. As of 2026, the total amount, including accrued interest, significantly exceeds $400 million. According to the Ministry of Justice, the state plans to appeal the ruling.Chronology of the Namokhvani HPP project and the arbitration dispute:• June 9, 2021 – Then-Prime Minister Irakli Garibashvili announced that the Namokhvani HPP project-envisaging a 433-megawatt capacity and an $800 million investment-would not proceed in its existing form.• October 2021 – Enka Renewables, a subsidiary of the Turkish company ENKA, having already invested up to $100 million in preparatory works, terminated its investment agreement with the state citing *force majeure* and initiated international arbitration proceedings due to a breach of terms. 2025–2026 – the period when, according to the initial plan, the hydroelectric power plant cascade was scheduled to become operational.• September 11, 2026 – the U.S. District Court for the District of Columbia rejected Georgia's attempt to stay the enforcement of the arbitral award and recognized the tribunal's decision in favor of ENKA, awarding over $400 million in compensation.According to the Prime Minister, despite the current situation, the country has ambitious plans that include the construction of three large hydroelectric power plants, as well as medium and small hydropower plants and wind and solar power stations.

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“At this stage, nearly 400 wineries are registered with the Harvest Coordination Headquarters and will phase into the grape reception process. This year’s harvest forecast stands at approximately 320,000 tonnes. The Georgian Government has stepped in to guarantee the full sale of this year’s grape crop, ensuring every winegrower has a secured market for their surplus. To this end, the state-owned Harvest Management Company LLC will purchase harvested grapes from individuals across Kakheti under established terms and conditions,” the statement noted.Under these guidelines, standard-quality, undamaged Saperavi grapes with a sugar content of no less than 21% will be purchased at GEL 1.50 per kilogramme. Substandard Saperavi, with sugar content ranging between 17% and 21% or showing partial damage, will be priced at GEL 0.90 per kilogramme. Saperavi grapes with less than 17% sugar content or significant damage will be set at GEL 0.30 per kilogramme.Under the Law of Georgia on Vine and Wine, undamaged grapes from other permitted varieties with at least 20% sugar content will be priced at GEL 1.30 per kilogramme. Grapes with sugar content between 17% and 20% will fetch GEL 0.80 per kilogramme, while those with less than 17% sugar content will be set at GEL 0.30 per kilogramme.The harvest coordination headquarters in Gurjaani is actively managing the grape intake process. For further information regarding the harvest, growers can call the dedicated hotlines at 1501 or 032 219 37 18.

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The event, entitled “Shaping the Future of Payments in the Caucasus and Türkiye,” brought together policymakers and representatives from central banks, the financial sector, and the international payment industry.During the forum, participants discussed the current challenges facing the global financial system, the modernization of payment infrastructure, and opportunities to deepen regional cooperation.In her address at the forum, Natia Turnava, Governor of the National Bank of Georgia, emphasized the importance of regional cooperation amid global economic fragmentation, highlighting that strengthening financial connectivity serves as an essential prerequisite for economic resilience.According to her, central banks play a critical role in modernizing financial services infrastructure and fostering interoperability with both regional and international partners.“For Georgia, situated along the Middle Corridor, strengthening regional cooperation is of paramount importance. As trade expands along this route, businesses require financial services that enable efficient and reliable cross-border payments,” stated the NBG Governor.Natia Turnava also highlighted the ongoing projects aimed at developing Georgia’s payment infrastructure. She noted that in 2026, the NBG completed a comprehensive modernization of its Real-Time Gross Settlement (RTGS) and clearing systems.The upgraded infrastructure is fully compliant with the ISO 20022 international messaging standard, facilitating faster, more secure, and reliable transactions, enhanced data quality, and greater international interoperability.“This upgrade paves the way for innovative digital services and the deployment of the Instant Payment System (IPS), scheduled for launch by the end of 2026. Our objective is to establish a secure, efficient, and innovative payment infrastructure that supports not only domestic economic growth, but also deeper regional financial cooperation,” remarked Natia Turnava.The forum was also attended by Ekaterine Galdava, Vice Governor of the National Bank of Georgia, who outlined the short-, medium-, and long-term priorities for the development of Georgia’s payment systems.Alexandre Ergeshidze, Head of the Specialized Risks Department at the NBG, participated in the panel discussion titled “Securing the Future of Payments: Building Resilient and Interoperable Systems.”Varlam Ebanoidze, Head of the Financial and Supervisory Technologies Department at the National Bank of Georgia, participated in the panel discussion titled "Building the rails of the future: real-time, 24/7, digital payment." The session explored how emerging technologies are reshaping payments, focusing on digital assets, use cases for blockchain-based shared ledgers, and interoperability between today's and tomorrow's payment systems. 

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According to the news agency haqqin.az, this information is revealed in the case files of the U.S. District Court for the District of Columbia (*ENKA Renewables LLC v. Georgia*).The International Chamber of Commerce issued the arbitration award in December 2024. Interest on the amount accrues on a quarterly basis.The arbitration dispute began in October 2021, after then-Prime Minister Irakli Garibashvili announced that the Namakhvani HPP project would not proceed in its existing form.By that time, ENKA had invested approximately $100 million in preparatory work for the project. The total value of the project had been estimated at $800 million.

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