ECB leaves refinancing rate unchanged at 2%

The Memorandum was signed by Ekaterine Mikabadze, First Vice-Governor of the National Bank of Georgia, and Evgeniya Bogdanova, Chief Executive Officer of AFSA.The purpose of the MoU is to facilitate mutual access between the Astana International Financial Centre (AIFC) and the Georgian securities markets in specific areas of financial services. The agreement establishes a framework for closer cooperation and will help streamline the provision of financial services between the two countries.Under the Memorandum, AFSA and the National Bank of Georgia will work towards creating practical mechanisms for mutual access for market participants. In doing so, the respective legal and regulatory requirements of each jurisdiction will be fully taken into account.The new framework also entails strengthening supervisory cooperation and information exchange between the two regulatory authorities, which will facilitate expanded access to cross-border markets under appropriate supervisory mechanisms."The purpose of the Memorandum is to facilitate mutual access to financial services between the two countries and to strengthen regulatory and supervisory cooperation. This, in turn, will help expand opportunities for financial institutions and market participants in both jurisdictions and increase cross-border investments. Deepening cooperation between our markets is a prerequisite for the sustainable development of the securities market in the broader region," stated Ekaterine Mikabadze, First Vice-Governor of the National Bank of Georgia."Regional financial integration gains real significance when regulatory cooperation translates into practical opportunities for market participants. This agreement signed with the National Bank of Georgia is an important step in this direction. We aim to create new opportunities for financial institutions and investors, and to lay the groundwork for Central Asia and the South Caucasus to emerge as a more interconnected and attractive investment space for international capital," noted Evgeniya Bogdanova, Chief Executive Officer of AFSA.The agreement builds upon years of cooperation between AFSA and the National Bank of Georgia. The parties first signed a Memorandum of Understanding in 2018, which established a framework for regulatory cooperation and information exchange.The new Memorandum represents the next stage in the development of this partnership, shifting from general regulatory cooperation to practical mechanisms focused on strengthening ties between the AIFC and the Georgian securities markets.The signing ceremony of the MoU took place during a high-level event held as part of Astana Finance Days, titled "From Fragmentation to Integration: Regional Cooperation for Stronger Financial Markets."During the round-table discussion held as part of the event, high-ranking representatives of financial regulatory authorities and international organizations from Central Asia, the Caucasus, and other partner jurisdictions discussed practical approaches to regulatory cooperation, cross-border market connectivity, and financial integration.

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Tbilisi (GBC) - Ever since the National Wine Agency of Georgia introduced a mandatory organoleptic evaluation and a 1.5-point minimum threshold for export certification, debate across the country’s wine sector has renewed. From the regulator's perspective, the logic is purely pragmatic: safeguard market integrity against low-quality or contaminated bottles. Yet, for small-scale and artisanal producers-particularly those devoted to experimental skin-contact, Qvevri, and natural winemaking-a critical question emerges: could this rigid administrative filter turn into a bureaucratic barrier?As the domestic market adapts to these shifting rules, the global wine community continues to debate the true purpose of evaluation scores: are they meant to act as punitive gatekeepers, or as tools for consumer engagement and education?To contextualize this dilemma, we spoke with wine expert Paul Declerck, author of How to Appreciate Wine. Raised in France’s Loire Valley among a family of winemakers, Declerck developed his 5-point evaluation framework precisely to strip away academic snobbery and unnecessary intimidation from wine tasting.“When you hand someone a glass of wine, almost anyone can tell you if they like it, but hardly anyone can explain why,” Declerck observes. “It often comes down to aromas, texture, viscosity, or acidity, but novice tasters lack the vocabulary to separate those elements. The 5-point approach gives beginners a clear structure so they know what to focus on and can assess wine purely on its structural merits.”“Taste Is Subjective; Quality Is Objective”One of the most persistent dogmas in the wine world is that taste is entirely subjective. Declerck, however, draws a firm line between personal preference and structural quality.“People often say taste is subjective, and that’s true-broccoli will taste very different prepared at home compared to a dish executed by a three-star Michelin chef,” Declerck explains. “So my answer is: yes, taste is subjective, but quality is objective. Quality represents a standard that applies to any crafted product, and that is precisely what we aim to measure.”This distinction carries particular relevance for Georgian tasting panels and everyday consumers alike, where personal bias frequently gets conflated with technical balance. The core objective of the 5-point method is to set individual preferences aside and focus on a wine’s structural architecture - its balance, intensity, length, and complexity.The Qvevri Goes Global: Universal Standards for Ancient VesselsTraditional qvevri and amphora wines fermented on the skins, once viewed as a niche Caucasian curiosity, have firmly integrated into the global winemaking lexicon. Today, European producers are increasingly adopting clay vessels in their own cellars.“You now see traditional clay amphoras and qvevri in cellars across the globe; I’ve personally observed them in Champagne, Burgundy, and Bordeaux,” Declerck notes. “Winemakers often experiment with them over a few vintages before fully committing. As we know, the wine industry evolves slowly, and adopting new practices takes time.”From an oenological perspective, Declerck attributes the appeal of clay vessels to their physical and chemical dynamic: the porous nature and rounded shape of the vessel encourage natural micro-oxygenation and convection currents, achieving naturally what oak barrels or stainless-steel tanks require manual pumps or lees-stirring (bâtonnage) to accomplish.Yet, as these artisanal, high-tannin, skin-contact wines gain traction in international markets, they raise a pressing question: how should products that defy traditional tasting grids be evaluated?Declerck argues that an objective evaluation framework must remain universal:“My 5-point method is universal-it applies equally to reds, whites, rosés, champagnes, skin-contact orange wines, light-bodied, or full-bodied styles. It won't instantly make you a seasoned expert capable of spotting every nuance of Qvevri aging, but it gives you a far clearer grasp of what structural quality actually means.”For Georgian exporters navigating Western markets, this approach is crucial. When international consumers encounter artisanal Georgian wines, evaluation metrics shouldn't confuse them. Instead, a universal scoring model helps buyers recognize firm Qvevri tannins and skin-contact extraction not as faults, but as essential structural components of quality.The Point Trap in Wine Commerce: Lessons from Robert ParkerIn commercial wine buying, retail chains, and sommelier networks, 100-point scales have long dominated purchasing decisions. However, when buyers and importers rely solely on numerical ratings, they risk misreading what the market actually wants.“The biggest mistake trade buyers and sommeliers make is forgetting what everyday consumers actually enjoy drinking,” Declerck points out, pointing to the legacy of influential critic Robert Parker.“Parker had a well-documented preference for bold, full-bodied, high-alcohol reds. Consequently, the region that received the highest density of 100-point scores under his pen was California, largely because Napa Valley built its reputation on powerful 15% ABV Cabernet Sauvignons. But does that mean every consumer wants to drink that style? Absolutely not.”Declerck highlights another revealing detail: throughout his career, Parker never awarded a 100-point score to a red Burgundy-simply because Burgundy produces lighter, more delicate, aromatic wines that didn't align with his personal palate.Today, global consumer preferences are shifting toward lower-alcohol, fresh, and food-friendly wines-a trend that presents real challenges for winemakers as global climate change drives up sugar levels and potential alcohol.“Wine buyers must stay tuned to their customers and offer what people genuinely want to drink that is the essence of sustainable wine commerce,” Declerck adds.Ultimately, a score or medal cannot guarantee commercial success if the product inside the bottle doesn't match contemporary lifestyle preferences.Georgia’s Export Dilemma: Storytelling vs. ScoresFor Georgian wineries targeting high-value Western markets, market positioning remains the central hurdle. The industry has spent years working to shift away from its historic reliance on low-cost, high-volume exports in Eastern European markets toward premium positioning on European and American shelves. When selling fine artisanal Qvevri wines, producers face a tactical choice: what drives purchase decisions more effectively - the compelling narrative of an 8,000-year-old winemaking heritage, or the reassuring logic of numerical ratings?Declerck observes that the answer depends entirely on the sales channel and buyer demographic:For beginners and passionate enthusiasts, storytelling is currently the single strongest commercial driver. That’s why wine marketers constantly urge producers to refine their narrative-sometimes the story becomes even more decisive than what’s in the glass.In volume retail, however, the dynamic changes:“Supermarkets rely heavily on medals and point stickers. When there isn't a sommelier standing by to tell the story, a clear score remains the fastest way to build trust at the shelf.”For Georgia’s wine sector, this demands a dual strategy. In boutique wine bars and specialized shops, the ancient story of the qvevri is the key to engagement. On supermarket shelves, internationally recognized quality benchmarks provide the reassurance foreign buyers need to make a purchase.Top-Down Regulation vs. Bottom-Up EducationIn Georgia’s domestic market, tighter government controls and the 1.5-point certification threshold bring a fundamental debate to the fore: what builds long-term industry strength better-rigid administrative enforcement, or an educated consumer base that demands quality?In discussing this balance, Declerck contrasts the philosophies of the “Old World” (Europe) and the “New World” (Americas, Australasia):“In the Old World, appellation systems like France’s AOC or Italy’s DOCG guarantee geographic origin and set baseline production standards. Champagne is the quintessential example: to bear the name 'Champagne,' grapes must originate from defined zones, irrigation is prohibited, harvesting must be done by hand, among numerous other rules. The objective is to guarantee a baseline of quality so consumers can trust the label.”Historically, the New World operated with far fewer restrictions. Yet, Declerck notes that the tide is turning:“Unregulated growth may boost market volume in the short term as consumers figure out what they like through trial and error. But over the long run, a total lack of standards damages credibility. Even California is introducing stricter origin protections because they recognize how much origin matters to buyers.”Georgia has established its own Protected Designations of Origin (PDOs), such as Tsinandali, Khvanchkara, and Mukuzani-though global awareness of these appellations is still developing. The lesson for Georgia is clear: long-term brand equity relies on transparent standards, provided regulatory frameworks don't suffocate smaller, innovative cellars.Overcoming Wine Intimidation: A New Era for ConsumersBeyond administrative thresholds, export scores, and tasting grids stands the central figure in the equation: the person holding the glass. For decades, the wine industry’s greatest misstep was overwhelming consumers with academic jargon and elitism rather than offering practical, accessible tools to enjoy wine with confidence“My primary goal is to help people stop feeling intimidated by wine and start trusting their own senses,” Declerck concludes. “Don't assume you lack a 'special nose' or an 'educated palate' to appreciate wine. Most people simply haven't been shown what structural markers to pay attention to. Wine can feel overwhelming-regions, vintages, producers, but it doesn't have to be. Start with structure, and the rest falls into place naturally.”Georgia’s wine sector stands at a pivotal transition. Quality control measures and ambitious export goals will yield lasting results only if regulatory thresholds serve as transparent benchmarks rather than punitive barriers, allowing ancient qvevri traditions to align seamlessly with universal quality standards.A score should never function as a bureaucratic roadblock, it should simply serve as a compass for the consumer.“Wine isn't about memorizing facts or trying to impress anyone. It’s about curiosity, pleasure, and building your own confidence-one glass at a time.” - Paul DeclerckBy Ana Gulbatashvili, Journalist

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According to her, the processes taking place in international markets are also being transmitted to the Georgian economy, and annual inflation in August amounted to 5.6%. The deviation from the 3% inflation target is mainly due to supply-side shocks, including the increase in energy prices."It is important that the supply shock does not increase inflationary expectations. In this regard, one of the important indicators - core inflation - was 3.6% as of August, which indicates that this impact still remains moderate," - noted Tamta Sopromadze.According to the National Bank, the current dynamics of inflation are in line with the central forecast. According to the current scenario, in 2026 the average annual inflation will be within 5.2%, and in the medium term inflation will gradually return to the 3% target.At the same time, economic activity remains at a high level. According to preliminary data, economic growth in July 2026 amounted to 8%, and in the first seven months of the year it averaged 7.9%."The Monetary Policy Committee considered it appropriate to maintain a moderately tight monetary policy, the goal of which is to quickly return inflation to the 3% target after the impact of external factors has subsided," Tamta Sopromadze noted.According to the National Bank, the regulator will actively continue to monitor current events and the intensity of their transmission to the local economy. In the event of increased pressure on inflationary expectations as a result of a prolonged supply shock, a moderate increase in the monetary policy rate may continue, and after the inflationary shock has subsided, the NBG will gradually begin to normalize the policy.The National Bank of Georgia decided to keep the monetary policy rate unchanged at 8.25% at the September 9 meeting of the Monetary Policy Committee.The next meeting of the Monetary Policy Committee is scheduled for October 21, 2026.

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According to the Ministry of Finance, the introductory meeting focused on partnership between the two countries in bilateral and multilateral formats.The Qatari ambassador, representing Qatar as the host country of the annual meeting of the Asian Infrastructure Investment Bank (AIIB), formally invited the Georgian finance minister to attend the event.The sides also discussed prospects for further strengthening cooperation in finance, trade and various other areas.

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More than 80 representatives from 18 countries that are members of UN ESCAP and the Organization for Cooperation of Railways (OSJD) participated in the event, including representatives of government agencies, railway companies and relevant organizations. The meeting was held under the auspices of OSJD and the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP).According to Georgian Railway, participants discussed the implementation of international legal instruments applicable to the railway sector, the introduction of new technologies, and strengthening cooperation between state regulatory bodies and railway companies.Particular attention was paid to the electronic exchange of data among participants in international rail freight transportation and the further digitalization of such transportation, as well as improving the efficiency of customs and border controls and simplifying related procedures.Members of the delegations shared their experience in implementing customs procedures for international rail freight transportation and discussed opportunities for introducing and using new technologies in customs and border control processes.

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According to NBG, in August 2026, headline inflation in Georgia stood at 5.6 percent. The deviation of inflation from the target continues to be driven largely by supply-side shocks, with rising energy prices making a significant contribution. Renewed geopolitical tensions in the Middle East have increased uncertainty surrounding energy supplies and heightened volatility in international prices. At the same time, inflationary pressures stemming from international food markets have intensified. In addition to their direct impact on consumer prices, higher energy prices increase production and transportation costs and, through this channel, affect the prices of other goods and services. Accordingly, assessing inflation dynamics requires consideration of both the persistence of the supply shock and the extent to which it is transmitted to other components of inflation and becomes embedded in inflation expectations. In this regard, developments in the relatively sticky components of inflation warrant particular attention. Relatively sticky inflation indicators remain below headline inflation. In August, core inflation stood at 3.6 percent, while services inflation was 4.4 percent. These developments suggest that, despite the supply shock, its impact on inflation expectations remains moderate.However, a prolonged shock increases the risk of its transmission to inflation expectations, making second-round effects an important factor to monitor. According to the NBG’s assessment, recent inflation dynamics remain broadly in line with the central forecast. Under the central scenario, other things being equal, average annual inflation is projected at around 5.2 percent in 2026, before gradually converging to the 3 percent target over the medium term.Economic activity remains strong. According to preliminary data, economic growth stood at 8.0 percent in July 2026 and averaged 7.9 percent over the first seven months of the year. High-productivity sectors continue to make a significant contribution to economic growth, partly offsetting inflationary pressures stemming from strong aggregate demand.Uncertainty surrounding the evolution of geopolitical tensions and the extent of their impact on the economy remains high. Accordingly, alongside the central scenario, the MPC considered both high- and low-inflation risk scenarios.In the event of the realization of the high-inflation risk scenario, fundamental processes require a higher trajectory of the monetary policy rate than the central scenario. This scenario assumes that a prolonged period of heightened geopolitical tensions than in the central scenario, coupled with an increase in international food prices due to adverse climate conditions, would affect inflation expectations and amplify second-round effects. As a result, inflation would be higher and more broad-based than under the central scenario, requiring a tighter monetary policy stance.On the other hand, under the low-inflation risk scenario considered by the MPC, the realization of the risks would allow a faster normalization of monetary policy rate compared to the central scenario. Structural changes in the economy in recent years have increased the contribution of relatively high-productivity and less import-intensive sectors, which, on the one hand, enhances the economy’s productive capacity and, on the other, improves the country’s external position. If these structural shifts persist over the medium term, stronger productive capacity would moderate demand-driven inflationary pressures. At the same time, the improved external position, together with a lower sovereign risk premium, would support a stronger fundamental exchange rate, providing an additional disinflationary effects. As a result, headline inflation would converge to the target faster than under the central scenario.Taking into account the current macroeconomic environment and prevailing risks, the MPC decided to keep the monetary policy rate unchanged. The moderately tight monetary policy stance aims to minimize risks related to inflation expectations and second-round effects, ensuring that inflation returns rapidly to the 3% target once the supply shock dissipates. The NBG continues to closely monitor the current developments and the intensity of their transmission to the domestic economy. Should prolonged supply-side shocks lead to an upward trend in inflation expectations, which would amplify second-round effects, the MPC will continue to increase the monetary policy rate moderately. Once the inflationary shock dissipates, the NBG will gradually begin to normalize its monetary policy stance.The next meeting of the Monetary Policy Committee will be held on October 21, 2026.

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In 2Q26, equity capital amounted to $210.5 million, which is 44.9% of total foreign direct investments. Reinvestment amounted to $300.5 million and its share was determined at 64.1%.According to preliminary data from Geostat, in 2Q26, China is in first place with $219.5 million, which is 46.8% of total foreign direct investments, the United Kingdom is in second place with $123.5 million (26.3%), and the United Arab Emirates is in third place with $47.7 million (10.2%).The share of the three largest investor countries is 83.3% of the total volume of investments.According to preliminary data from Geostat, in 2Q26, the largest amount of foreign direct investments was made in the financial and insurance activities sector and reached $207.6 million (44.3%). In second place is the real estate sector with $119.9 million (25.6%), and in third place is the manufacturing sector with $59 million (12.6%).The share of the three largest sectors (in terms of foreign direct investment) amounted to 82.4%.

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According to the National Wine Agency, 15 inspections were carried out in 5 companies within the framework of state supervision, the purpose of which was to assess the compliance of the technological process of wine production at the enterprises with the legislation. Out of 31 samples taken, no violations were detected in any case.According to the agency, during the reporting period, control was carried out in several directions at different stages: Inspection control: 213 inspections were carried out in 44 companies to verify the lots submitted for certification. Out of 557 samples taken, non-compliance was detected in 9 samples from 4 companies. Clearance Economic Zone (GEZ): The products of 66 companies were inspected by international auditing companies (Bureau Veritas and SGS). Out of 273 samples taken, non-compliance was detected in 12 samples from 8 companies. As a result of the control, 17 fines were issued in relation to 19 samples from 10 companies.“The total amount of fines imposed amounted to 25,000 GEL. In order to increase the competitiveness of Georgian wine and other alcoholic beverages and ensure the quality of Georgian products in international markets, the National Wine Agency systematically carries out quality control. Compared to previous years, the number of violations has decreased, which indicates the effectiveness of the wine quality control system,” the National Wine Agency said.

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