Kavelashvili rejects Zourabichvili's lawsuit against Law on Transparency

As announced on 30 September 2021, the EBRD and IFC entered into a joint venture with TBC PLC in relation to TBC PLC’s wholly owned Uzbek subsidiary, TBC Bank (“TBC UZ”), to support its continued growth. Under the terms of those arrangements, TBC PLC retained 60% ownership of TBC UZ and each of the EBRD and IFC acquired 20% of TBC UZ. That joint venture has been regulated by a shareholders’ agreement which contained customary board and shareholder reserved matters. Under the terms of the joint venture, the EBRD and IFC also entered into an option agreement with TBC PLC which provided for a put option for EBRD and IFC and a call option for TBC PLC.TBC PLC, the EBRD and IFC today have agreed a re-organisation of these arrangements under which both TBC UZ and Payme JSC, 100% subsidiary of TBC PLC and the country’s leading payment app, will be 100% owned by TBC Digital. TBC PLC will own 79.7% of TBC Digital and each of the EBRD and IFC will own approximately 10.15%. The governance arrangements that have previously been in place in respect of TBC UZ will be terminated and largely replicated for TBC Digital. In particular, there will be a new shareholders’ agreement between TBC PLC, the EBRD and IFC, which will contain customary board and shareholder reserved matters.In addition, the EBRD and IFC have also entered into a new option agreement with TBC PLC. This provides, among others, that each of the EBRD and IFC may exercise a put of their respective shares in TBC Digital to TBC PLC following the fifth anniversary of the new arrangements. The put option would be settled by the issue of new shares of TBC PLC or, to the extent that was not practicable, in cash. TBC PLC will also have a call option from the eighth anniversary of the new arrangements pursuant to which it would be able to acquire for cash any shares in TBC Digital held by the EBRD and IFC at that time.The new arrangements will come into effect after completion of the applicable registration requirements, which is expected to be within the next three months.Vakhtang Butskhrikidze, CEO of TBC Bank Group, commented:"We are grateful to our partners at the EBRD and IFC for their unwavering commitment to the success of TBC Uzbekistan, our fast-growing digital banking business.They are an integral part of our story in Central Asia’s most populous nation, where TBC is driving the expansion of digital banking in the region and has achieved remarkable results since operations commenced nearly 6 years ago.The establishment of TBC Digital as our new holding company will unlock additional synergies, enhance governance and create more value for our shareholders.It will further support TBC’s fast and sustainable growth in the country, driven by our stellar team led by Nika Kurdiani as CEO of TBC Uzbekistan."Francis Malige, EBRD’s Managing Director for Financial Institutions, commented: "We are excited to embark on this new chapter with our long-standing partners, TBC PLC and IFC. TBC Digital will consolidate all Uzbek operations, streamline the governance, and unify the digital-first strategic objectives.The next phase will focus on scaling up financial services to retail customers, small and medium-sized businesses and individual entrepreneurs.Recently, TBC introduced the country’s first fully digital banking services tailored for SMEs. Improved access to finance through user-friendly digital tools and a paperless onboarding process is critical for fostering a dynamic and inclusive financial ecosystem for SMEs in Uzbekistan.TBC Uzbekistan has emerged as a transformative player, demonstrating the viability of digital banking in a reforming economy. Its success underscores the importance of customer-centric innovation, acting as a catalyst for the sector-wide modernisation.  The bank's trajectory shows that agility and digital adoption are critical for success in evolving markets.”Momina Aijazuddin, IFC Regional Industry Head, Financial Institutions, said:“IFC is committed to fostering digital financial inclusion and sustainable economic growth in Uzbekistan. By consolidating TBC Uzbekistan's operations under TBC Digital, we leverage the advantage of digital services to expand access to finance for individuals, medium, small, and micro businesses across the country.We believe that this move will enhance TBC’s ability to provide innovative financial solutions and to further support the economic development of Uzbekistan.”

12:44

According to him, a Government Efficiency Department will be created, which will ensure control over the implementation of decisions at all levels of executive government.As Levan Zhorzholiani noted, communication has also been established with the State Audit Office, where real-time audit will be implemented."A department will be created in the government administration, the internal audit service will become the Government Efficiency Department. We have also spoken with the State Audit Office, where real-time audit will be implemented. While previously audits were conducted for past years, now it will be possible for the State Audit Office to make assessments regarding ongoing projects. I think this will greatly benefit the efficient spending of budget funds, as well as facilitate taking more effective steps in any field, be it energy direction, property management, or any other. One of the main principles of our governance is transparency and accountability, and the creation of this new mechanism serves to strengthen these two fundamental principles," - stated Levan Zhorzholiani.

11:14

Lion Finance Group (BGEO LN) shares closed at GBP 55.60/share (-2.28% w/w and +5.10% m/m). More than 169k shares traded in the range of GBP 55.10 - 58.00/share. Average daily traded volume was 53k in the last 4 weeks. The volume of BGEO shares traded was at 0.38% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 42.55/share (-3.51% w/w and -1.05% m/m). More than 371k shares traded in the range of GBP 42.15 - 44.95/share. Average daily traded volume was 157k in the last 4 weeks. The volume of TBCG shares traded was at 0.66% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 15.52/share (+2.65% w/w and +7.48% m/m). More than 309k shares traded in the range of GBP 15.00 - 15.76/share. Average daily traded volume was 89k in the last 4 weeks. The volume of CGEO shares traded was at 0.78% of its capitalization.

10:13

As part of the visit, Natia Turnava met with Pan Gongsheng, Governor of the People's Bank of China. Following their discussions, the National Bank of Georgia and the People's Bank of China signed a Memorandum of Understanding aimed at expanding and strengthening bilateral cooperation. The agreement covers collaboration in monetary policy and the exchange of information and expertise in financial technologies, payment systems, and securities market development.In addition to engagements with China's central bank, the NBG delegation held meetings with top executives from three of China’s largest banks: Zhang Weiwu, Vice President of the Industrial and Commercial Bank of China; Liu Jin, Vice President of the Bank of China; and Zhi Zhihong, Executive Director of the China Construction Bank.These institutions are among China’s “Big Four” banks. The Bank of China operates in 64 countries, managing total assets of approximately $4.6 trillion. The Industrial and Commercial Bank of China, present in 49 countries, holds assets exceeding $6 trillion. The China Construction Bank operates in 31 countries, with total assets of about $5.4 trillion.Following the meetings, Natia Turnava highlighted the significance of deepening cooperation with the Chinese banking sector. She emphasized that enhanced relations offer a unique opportunity for Georgia’s banking sector to access China’s vast financial market, expand transaction capabilities, and strengthen correspondent banking relationships.“Additionally, this partnership allows our financial sector to become more diversified, providing Georgian consumers with broader access to various financial products and services,” stated Turnava.

10:09

In February 2025, compared to the same period of the previous year, the estimated real growth in following activities contributed significantly: Professional, scientific and technical activities, Information and communication, Transportation and storage, Energy, Mining and quarrying.Decline was registered in Manufacturing and Construction.

10:04

GBC offers the full statement of the National Bank of Georgia:"We would like to respond to the misinformation spread in various media outlets that it is planned to restrict the activities of payment systems - VISA and MASTERCARD in Georgia.First of all, we would like to clarify that this is disinformation and an attempt to misinterpret real facts, which do not correspond to reality.One of the functions of the National Bank of Georgia is to promote the safe, sustainable and effective functioning of the payment system.To fulfill this function, the National Bank constantly cares for the development of the country's payment system, improving its accessibility, efficiency, security, as well as creating a competitive environment in this regard. In particular, the National Bank itself develops the payment infrastructure, prepares proposals for legislative amendments, and also cooperates with the world's leading technology companies, including international card systems Visa and Mastercard.The above-mentioned companies have been represented in Georgia for more than 25 years and have made a great contribution to the development of the country's payment sector, which was one of the main drivers of the growth of non-cash payments in Georgia. Within the framework of cooperation with Visa and Mastercard, new products are periodically introduced, including cross-border transfer tools.However, the development of financial technologies has allowed the world's leading traditional payment systems to improve their efficiency, in particular, a new generation system has been created - the instant payment system, which has already been introduced in more than 120 countries. These systems work without the use of cards and have the ability to offer the end user a payment method similar to card payments, in certain cases with more advantages, such as the cost of implementing the operation and immediate availability of funds to the transfer recipient.Several years ago, the National Bank, together with the World Bank, began working on a project to introduce an instant payment system. This system will be available to our population and business representatives from the second half of 2026. Moreover, this system will further develop the so-called "Open Banking" services, which are offered in Georgia by fintech companies registered by the National Bank with the status of payment service providers. It should be noted that the establishment of the Institute of Non-Bank Payment Service Providers and the promotion of "Open Banking" services are one of the requirements of Georgia's Association Agreement with the European Union, which was fully implemented with legislative amendments implemented in 2022. The synergy of instant payments and open banking services will allow consumers and private entities to receive services tailored to their needs and affordable. It should be noted that despite the fairly high level of development of card payments in Georgia, this payment method is still not widely available to small entrepreneurs due to the high commission for its service. "The instant payment system, in collaboration with fintech companies, will increase the availability of electronic payments in a sector that currently lacks this service.It should also be noted that the new payment system will operate on the basis of international standards and is compatible with the Single Euro Payments Area (SEPA) schemes, which will allow us to integrate our country's payment system with the European payment system after Georgia's accession to the SEPA geographical area.We would like to clarify that the above-mentioned non-card and traditional card (VISA, Master Card, American Express) payment schemes operate in Georgia, as well as in leading countries of the world, and will continue to operate in parallel with each other, which will create more competition in the payment sector and provide a wide choice of services for consumers", - NBG's statement reads.

28 March 11:52

The volume of car loans in bank deposits, after a 6-month decline (September-January), increased in February to 295 million GEL (+ 10% m.m). This is added to the car pawnshop, 135 million.According to BRG, car lending was at its peak at the end of August, with investments of 342 million GEL.The fall-winter drop in financing in commercial banks is explained by external factors, including increased demand from Central Asia, which increased the share of re-exports. Interest rates have risen mainly due to the tightening of foreign currency loans, under the influence of 3 rounds of increases in the limit on foreign currency lending (since January, the limit has been increased to 500,000).Car loans are issued for a term of up to 6 years. Secondary, at an annual rate of 17-18%. The annual rate of a loan for the purchase of a passenger car is determined from 12-13%.The borrower's co-financing is within 20-30%. At the same time, the LTV is not reduced. As you know, the loan-to-value ratio for loans secured by real estate has been reduced to 10% in GEL, and to 20% in foreign currency from 30% for non-residents.As reported by TBC and the Bank of Georgia, only cars brought to the site (including those without clearance) are financed. No purchases are made on credit at auctions.The rate and term are determined taking into account the customer's income and the condition of the car. By the date of disbursement of the car loan, the car must not be manufactured before 2019. Older cars are allowed for auto leasing.Banks mainly issue transport loans through subsidiary leasing companies, the rate is within 28%-44%. Commercial banks mainly issue car installment loans. Banks with large assets operate in this segment.Indexed loan (linked to foreign exchange LIBOR, linked to the GEL variable refinancing rate). It may increase in price several times before the end of the term. According to the loan terms, in GEL, when the rate increases by 5 percentage pont, the effective rate is equal to 23%. In dollars, when the effective rate changes by 3 percentage pont, the effective rate increases from 17% to 21%, and in Euro - from 16.2% to 19.4%.The adjustment of the rate under foreign exchange loans is determined by the increase or decrease in global rates (according to the expectations of the European Central Bank and the Fed's rate and its fluctuations).

28 March 11:49

According to Geostat, in 2024, Georgia imported a total of $92.8 million worth of bakery and confectionery products.TOP-5 countries by importing bakery products in 2024: Russia - $25.75 million Turkey - $16.75 million Ukraine - $12.52 million Bulgaria - $6.84 million Poland - $6.2 million As for bakery product exports, in the first quarter of 2025, a total of $962 thousand worth of products left Georgia, which is $471.8 thousand less than the same period last year ($1.43 million). Exports of this product decreased by 32.8% during the reporting period.In 2024, Georgia exported $6.34 million worth of bakery products.TOP- 5 countries exporting bakery products in 2024: Armenia - $2.88 million Azerbaijan - $2.41 million Uzbekistan - $250 thousand Turkey - $202 thousand Israel - $200 thousand

28 March 11:42