Zurab Kokosadze sells 6,400 LFG shares

The Bank of Georgia, on behalf of global giant BNY (The Bank of New York Mellon Corporation), provided custody of Uzbek shares in the settlement infrastructure, which was a necessary condition for the development of the Global Depository Receipts (GDR) program.The partnership was made possible after the Bank of Georgia became the first foreign financial institution to join the Uzbek capital market’s “regulatory sandbox” and receive the status of a foreign nominal holder. This status allows the bank to manage securities accounts in both local and foreign currencies without an additional license.In parallel with operating in the government securities market, the Bank of Georgia is also expanding its custody services for corporate shares and bonds in Uzbekistan, thereby facilitating access to emerging markets for international investors. 

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The shares were cancelled on May 28, and by that time the Group had no shares remaining in its treasury, and the number of ordinary shares with voting rights amounted to 43,187,929.The Group announced a share buyback and cancellation program worth GEL 55 million on May 7, 2026, which was an extension of the GEL 98.0 million, GEL 51.5 million, and GEL 53.5 million share buyback and cancellation programmes announced on 20 August 2025, 20 November 2025 and 25 February 2026 respectively (the "Buyback Programme").The total number of shares cancelled since the launch of the Buyback Programme in August 2025 is 675,647.

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According to the NBG's "Monthly Review", at the end of April, the dollarization of deposits of legal entities increased by 0.3%p to 37.4%. The dollarization coefficient of the retail portfolio is 60.3%, having decreased by 0.3 percentage point in the reporting month.In April, the average weighted interest of total deposits (excluding government deposits**) is 5.6% (- 0.1%p m.m).The rate on GEL deposits decreased by 0.1 %p, to 7.1%. On deposits denominated in foreign currency, it remained almost unchanged (1.7%). On Euro-denominated term deposits, it decreased by 0.3 percentage point, to 1.2%.The highest interest rates are paid on government deposits, 9.3% for central government deposits, up to 10.2% for local government deposits. 8.4% for state-owned enterprises, and 5% for individual entrepreneurs.

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In detail:• The residential segment index increased by 0.5 percent compared to the previous month and by 1.1 percent compared to the same month of the previous year;• The non-residential segment index increased by 0.05 percent compared to the previous month and by 5.9 percent compared to the same month of the previous year;• The civil segment index increased by 2.2 percent compared to the previous month and by 5.7 percent compared to the same month of the previous year.In April 2026 the Construction Cost Index (CCI) increased by 1.1 percent compared to the previous month. The change was mainly due to a 6.4 percent increase in the transportation, fuel and electricity cost category, which contributed 0.78 percentage points to the total index change.Compared to April 2025 the CCI increased by 3.8 percent. The latter was largely caused by the 12.7 percent increase in the cost category of transportation, fuel and electricity and by the 2.2 percent increase in average monthly nominal wages of employees in the construction sector, which contributed 1.61 and 1.5 percentage points to the total index change, respectively. Along with this, the Construction Cost Index posted a 27.4 percent increase compared to February 2022.

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During meetings with investors, Governor Turnava discussed Georgia's current economic trends, macroeconomic stability, inflation dynamics, and the strategic priorities of the NBG's monetary policy. The discussions highlighted the country's economic resilience, the strength of the financial sector, the accumulation of international reserves, and the key factors supporting the stable development of the Georgian economy.The discussions also covered Georgia's economic growth outlook, regional challenges, and the continued interest of international investors and partners in the country's financial sector.It was emphasized that despite global headwinds and heightened market uncertainty, Georgia's economy and financial system remain stable. The National Bank of Georgia continues to implement policies aimed at preserving the resilience of the financial sector."The Georgian economy is distinguished by strong macroeconomic fundamentals, while our financial sector remains sound and resilient," stated Natia Turnava. "The primary mandate of the NBG is to ensure price stability, and we remain committed to a prudent and consistent policy approach to achieving this objective. This remains a key prerequisite for sustainable economic growth, financial stability, and long-term investor confidence."As part of the working visit to London, the NBG Governor also met with representatives of major credit rating agencies, including Moody's and S&P Global Ratings, to discuss issues related to Georgia's sovereign credit ratings.

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Within the framework of the two-day working meetings, representatives of the National Bank of Georgia introduced their colleagues to the experience of implementing the project to upgrade the real-time settlement (RTGS) and clearing (ACH) systems, which was successfully completed in May of this year. Special attention was paid to the project planning and management process, system architecture, operational and functional model, coordination with the participating banks and the Treasury Department of the Ministry of Finance, testing stages and the process of launching the system in a real environment.During the meetings, the parties discussed future directions for the development of payment systems. Among them, the introduction of an instant payment system (IPS), ensuring 24/7 operation, the use of the ISO 20022 standard and other development opportunities.Representatives of the National Bank of Georgia shared with the guests the experience gained during the project implementation process, the main challenges and the approaches used to solve them. They also presented important examples and recommendations that may be useful in the planning and implementation of infrastructure projects of a similar scale.The visit was carried out within the framework of the existing cooperation between the central banks of Georgia and Armenia and aimed to share knowledge and best practices, which will contribute to the development of modern, safe and efficient payment systems in the region.

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During the reporting period, Georgian wine exports to Russia decreased by 6.6% ($11.98 million). Nevertheless, the occupying state still remains Georgia's undisputed first market with $170.67 million, which accounts for 63.7% of total export revenues.In parallel with Russia, significant decreases were recorded in the markets of the USA (-17.4%), Kazakhstan (-10.4%) and the UK (-7.6%). The value of exports to the United States decreased from $7.15 million to $5.9 million, which is why it moved to eighth place in the ranking and fell behind Germany ($5.94 million, +1.1%).Amid the decline in traditional markets, Georgia recorded an increase in exports to several destinations in the European Union and Asia.Poland ($16.98 million, +2.3%), Ukraine ($13.39 million, +7.5%) and China ($9.83 million, +6.1%) consolidated their positions in the top ten export partners. Double-digit percentage growth was recorded in Belarus (19.7%) and Latvia (16.5%).Particularly high growth dynamics, albeit with relatively small volumes, are distinguished by France (+63.1%), Norway (+66%), Uzbekistan (+65.4%) and Bulgaria (+65.7%).In the reporting year, the sharpest growth, 110.1%, was recorded in the Austrian market, where the export figure increased to $0.30 million.

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The increase was observed in the production value of the business sector as well. In the I quarterof 2026, production value equaled 23.3 billion GEL, which is 12.4 percent more year-on-year.In the I quarter of 2026, total purchases of goods and services carried out by enterprises equaled 29.5 billion GEL (year-on-year 2.5 percent more), while the purchase of goods and services for resale amounted to 17.9 billion GEL (year-on-year 4.0 percent more).In the I quarter of 2026, the average number of persons employed in business sector equaled 799.4 thousand, which is year-on-year 3.7 percent more. Out of the total number of persons employed, 44.2 percent were female and 55.8 percent were male.Large businesses employed 43.6 percent of total number of persons, while 19.4 percent were employed by medium, and 37.0 percent - by small businesses.The total number of employees amounted to 743.7 thousand (year-on-year 3.5 percent more) and the total personnel costs of enterprises equaled 5 319.0 million GEL (year-on-year 11.4 percent more).In the I quarter of 2026, average monthly remuneration of employees equaled 2 335.9 GEL (166.3 GEL increase year-on-year), while remuneration specifically for women employees was 1 837.6 GEL (126.1 GEL increase year-on-year).Average monthly remuneration by size of enterprises was as follows:• Large business - 2 513.5 GEL;• Medium size business - 2 786.5 GEL;• Small business - 1 787.2 GEL.In the I quarter of 2026, the arts, entertainment and recreation had the highest share (36.8 percent) in the total turnover in business sector, followed by trade sector (including repair of motor vehicles and motorcycles) with 31.4 percent share, manufacturing – with 7.4 percent, construction – with 4.5 percent, transportation and storage – with 4.5 percent, information and communication – with 4.4 percent, and other sectors – with 10.9 percent share.In the I quarter of 2026, trade (wholesale and retail trade; repair of motor vehicles and motorcycles), manufacturing, and human health and social work activities led business sector by number of employed persons with 29.3 percent, 11.4 percent, and 9.4 percent shares, respectively. Enterprises engaged in transportation and storage (8.1 percent), construction activities (7.5 percent), information and communication (6.3 percent), and accommodation and food service activities (5.5 percent) also had a significant share though.

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