European Parliament's Committee on Foreign Affairs adopts report on Georgia

The 2nd largest pawnshop - Leader Credit added 8 employees in the first quarter.GBC is specifying the profile at the request of MSME financing MFOs (SCAPP, Lazika), due to the difference in business model. The majority of the market (29 MFOs) are pawn-shop, with a total portfolio of 842,770 loans worth 2 billion GEL (MFOs rating by lending).The sector ended 2025 with a portfolio of 1.9 billion (819,000 loans).As of Q1/2026, the sector's assets are 2.3 billion GEL (2025 - ₾2.2 billion), interest income is 135 million GEL and net profit for the quarter is 51.3 million GEL.

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The company’s General Director, Lasha Abashidze, presented the annual report at an event held at the Paragraph Hotel. According to him, the total savings as a result of strategic changes exceeded 230 million GEL.Financial sustainability and growth in marginsAccording to the report, the operating profit margin of Georgian Railway has improved significantly and reached 36% (in the first half of 2025 this indicator was 25%). The dynamics of revenue growth is also stable: in the first four months of 2026, a 15% increase was recorded compared to the same period in 2025.“We reduced operating and administrative expenses, optimized personnel and reviewed contracts. We had a fairly productive year for the company,” noted Lasha Abashidze.Strategic optimization and digital transformationThe increase in the company’s efficiency was driven by several key factors: Lease optimization: the lease on 400 units of wagons was canceled. Infrastructure savings: The amount saved on tunnel works amounted to approximately 13 million GEL. Direct communication: A direct connection was established with container cargo owners. Special attention was paid to regional cooperation. As a result of negotiations with China, Kazakhstan and Azerbaijan, the digitalization of services reduced the time of border procedures by 7.5 times - from 15 hours to 2 hours.

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Within the framework of the annual meeting of the Asian Development Bank, the Minister of Finance held meetings with the President and senior officials of the bank. The parties discussed the current economic situation in Georgia, the results of high economic growth and the projects underway by the bank in the country.Lasha Khutsishvili emphasized the role of the ADB as one of the leading donor financial institutions: Total volume of investments: The bank has invested up to $6 billion in Georgia. Current portfolio: The value of existing projects exceeds $2 billion. “Middle Corridor”: The Bank President emphasized Georgia’s central role in the development of the Middle Corridor. At the meeting, ADB reaffirmed its readiness to continue supporting investments in infrastructure to further highlight Georgia’s strategic role in the region.

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According to the PM, the conversation was oriented on the future, and the “spirit was significant.”“We didn’t go into depth, including regarding the problems. The problems haven’t gone anywhere, but we need to be future-oriented. I have never mentioned Zelenskyy in a negative context for a simple reason, and despite problems, Zelenskyy is the President of the country, which is in a state of war, and this country is a friend of Georgia. Therefore, I always measure my words. The problems remain but we should be future-oriented,” he said.Irakli Kobakhidze went on to say that since the meeting was closed-door, its details could not be disclosed.“I cannot disclose the details. The only thing I can say is that our conversation was essentially focused on the future. The spirit and mood of this conversation, expressed on both sides, was friendly. I cannot go into details about what problems we reviewed and what we did not discuss, since the meeting was closed and therefore the content cannot be made public. The problems remain. Did not Podolyak (Head of the Office of the President of Ukraine) or Danilov (former secretary of the National Security and Defence Council of Ukraine) make statements after yesterday? Or the ambassador was not recalled after yesterday, or other steps were not taken after yesterday?! Of course, the problems which existed still stand. But we should be oriented on the future and this is our spirit,” he said.Irakli Kobakhidze noted: “We support the Ukrainian people, we are in solidarity with Ukraine and we are interested develop firendly relations both between the countries and governments.”Prime Minister of Georgia, Irakli Kobakhidze, met with Ukrainian President Volodymyr Zelenskyy during the eighth summit of the European Political Community (EPC) in Yerevan, on May 4.Ukrainian President Volodymyr Zelenskyy posted on social media about his meeting with Georgian Prime Minister Irakli Kobakhidze on the sidelines of the eighth summit of the European Political Community.According to Zelenskyy, continuing dialogue at all levels is important.“Met with the Prime Minister of Georgia, Irakli Kobakhidze. There are indeed unresolved issues between our states. It is important to have dialogue at all levels. Ukraine has always respected and continues to respect Georgia, its sovereignty, and its people. We will continue our cooperation going forward.” Zelenskyy wrote.

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As Kobakhidze told reporters, the government is currently conducting active negotiations with potential investors, although details will be announced later.“We are focused on the investor. The main thing is that Anaklia Port will be built and the state will receive maximum profit from this project… Anaklia Port will be built in all cases and will serve the further development of our country’s transit function,” the prime minister noted.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.

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According to the amendments to the “Law on Vine and Wine”, from May 1, 2026, the cultivation of an entrepreneurial vineyard will be possible only with the prior consent of the National Wine Agency. The initiators of the reform aim to protect the reputation of Georgian wine in the global market, where competition is growing.Songulashvili noted that the state will not allow any compromises regarding counterfeit products.“We will be very strict, radical and uncompromising in dealing with wine counterfeiting. The entire agency is working in this direction... Not a month goes by without control purchases being carried out in both restaurants and chain markets, and we have had numerous cases of counterfeit products being seized, removed and confiscated,” the minister said.According to him, quality control is crucial because Georgia, as a small-land country, cannot compete in quantity on the international stage: “Our main goal is quality. ‘Georgian’ should be a quality mark for all products.”In order to revitalize the sector, this year the state is further tightening the conditions for receiving grapes based on sugar content. According to the minister, products with low sugar content will no longer be included in the production of quality wine.“We categorically say that grapes up to 17 degrees will be sold for 30 tetri, because this cannot be used in the production of quality wine. Where the state is responsible, quality will be strictly controlled and the winegrower will receive compensation according to his labor and the quality of the product,” Songulashvili noted.Levan Mekhuzla, the chairman of the National Wine Agency, explained that under the new law, winegrowers must submit a laboratory analysis of the soil to obtain a permit to cultivate vineyards. One of the main criteria is the groundwater level - the water level should not be less than 1 meter.According to Mekhuzla, the reform aims to correct past mistakes, when vineyards were built in swamps or at inappropriate heights only to increase the number.“The reform insures both the investor and the consumer, taking into account the objective conditions when wine consumption has decreased and competition has increased in international markets,” Mekhuzla added.The agency will be authorized to refuse to issue a permit to cultivate a vineyard if the submitted documentation or soil conditions do not meet the established high standards.

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According to the commission, the Georgian fuel market is significantly dependent on imports from Russia, Bulgaria, Romania and Azerbaijan. This concentration makes the market vulnerable to geopolitical fluctuations, sanctions and logistical disruptions.During the same period, the combined market share of the five largest companies was 67.3%, indicating an average concentration.In March-April 2026, amid tensions in the Middle East and global energy risks, fuel price increases in Georgia accelerated significantly: The price of gasoline (regular and premium) increased by 10.8%–14.4% The price of diesel increased by 20.1%–23.8% According to the Commission’s analysis, reducing excise duties on fuel will not be an effective mechanism for reducing prices, as it is already low compared to European countries. In order to ensure price stability, the Commission rejects administrative control and focuses on market liberalization.The main recommendations outlined in the conclusion are: Diversification of supply: expanding the range of import sources. Inventory Management: Improving the strategic reserves management system. Logistics: Optimizing the supply chain and gradually introducing self-service models to reduce costs. “Fuel price stability in Georgia is achieved more through enhanced competition, security of supply, and market transparency than through administrative price control,” the parliamentary commission document states.

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The officials reviewed the longstanding and successful partnership between Georgia and the Asian Development Bank, spanning both the public and private sectors. Notably, the bank’s current portfolio in Georgia amounts to approximately six billion US dollars, with ongoing projects valued at over two billion dollars. Additionally, work is underway on projects worth up to a billion dollars within this year’s action plan.Lasha Khutsishvili briefed the ADB President on Georgia’s macroeconomic and fiscal indicators, including the country’s economic growth and medium-term forecasts.He expressed gratitude for the investments made and continuing to be made by the ADB across vital sectors such as roads, energy, and regional and municipal development.Attention was also given to the ADB’s involvement in infrastructure projects of international significance, aimed at enhancing Georgia’s transport and logistics capabilities, digital connectivity, energy security, and independence through the Middle Corridor project.In response, the President of the Asian Development Bank acknowledged Georgia’s strengthened role through investments in the Middle Corridor infrastructure and reaffirmed the bank’s readiness to continue active cooperation at both bilateral and regional levels.The meeting was attended by Deputy Minister of Finance Ekaterine Guntsadze, ADB Alternate Executive Director Lisa Wright, Director General of the ADB’s Central and West Asia Department Leah Gutierrez, and other representatives of the Asian Development Bank.

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