Parliament of Georgia overrides Presidential veto of controversial NBG bill

Parliament of Georgia has today overturned the Presidential veto on a controversial bill offered by majority Members of Parliament (MPs) that envisages depriving the National Bank of Georgia (NBG) of its supervisory functions.

In Parliament today lawmakers first discussed the President’s remarks about the proposed bill then, if necessary, voted to overturn his veto.

Earlier President Giorgi Margvelashvili used his veto on the MP-offered bill and suggested empowering the Bank to continue supervising financial institutions in Georgia. He claimed depriving the Bank of this right would put the NBG’s independence at risk. 

In Parliament today 14 MPs supported the President’s opinion while 45 voted against it.

As procedures stated, Parliament then had to vote on the Presidential veto, which Margvelashvili imposed on July 31 this year. 

With 81 votes for and 12 against, the majority managed to overcome the President’s veto. 

Looking ahead the bill will be sent again to the President to sign before it can go into effect. If the President refuses to sign the bill Georgia’s Parliament Speaker must do it. 

The bill, offered by the Georgian Dream coalition, stated a separate Financial Supervisory Agency would be established and governed by a seven member Board to replace NBG’s currently authority over other financial institutions in Georgia.

NBG president and one member of the central bank’s Board will take two seats; five other seats will be occupied by candidates nominated by the Government and confirmed by Parliament. The head of the Agency will be nominated by Board members and later confirmed by Parliament. 

The majority needed at least 76 votes in the 150 seat Parliament to push the bill.