Central Bank: Georgian financial system ready to withstand stress amid Russia-Ukraine war
The central bank noted the direct sanctions imposed by the international community against Russia due to its invasion of Ukraine had affected only one subsidiary of a Russian bank in Georgia. Photo: Nino Alavidze/Agenda.ge
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Uncertainty over macroeconomic trends is high amid the Russia-Ukraine war, but Georgia's financial system is ready to withstand stress, the National Bank of Georgia said on Wednesday.
The banking sector remains resilient even in the face of severe and extreme risk scenarios. Despite the possible losses, the existing capital buffers allow for their absorption," the NBG said in the update on the matter.
The central bank noted the direct sanctions imposed by the international community against Russia due to its invasion of Ukraine had affected only one subsidiary of a Russian bank in Georgia.
"This problem was soon resolved by the bank selling part of its assets and liabilities to other banks. Also, if necessary, the National Bank will take countermeasures, as it did in the early days of the pandemic, to help sustain the financial sector,” the statement also noted.
“It should be noted that the current macroeconomic developments once again clearly show the correct, forward-looking policy of the National Bank to reduce dollarisation," the Bank also pointed out.
The NBG also said that the financial sector of Georgia maintained “resilience” and continued its funding of the economy.
A majority of Georgian citizens agree with the Government’s decision not to join economic sanctions against Russia following the Kremlin’s invasion of Ukraine last month, a poll by the Georgian Opinion Research Business International (GORBI) shows.
British Ambassador to Georgia Mark Clayton said Georgia was “playing its part” in the package of international sanctions imposed on Russia for its invasion of Ukraine, in an interview released by Interpressnews agency on Monday.
The Georgian finance system’s joining of the international sanctions imposed against Russia due to its invasion of Ukraine has been praised by the international regulators, Koba Gvenetadze, the Head of the National Bank of Georgia said on Wednesday.
Georgia is in full compliance with the financial sanctions imposed by the international community against Russia due to its invasion of Ukraine, Georgian Foreign Minister David Zalkaliani said on Thursday.
The Consumer Price Index in Georgia increased by 1.1 percent in May 2022 month-on-month, while the annual inflation rate equaled 13.3 percent, the National Statistics Office of Georgia announced on Friday.
Inflation in the Georgian economy will remain close to the target in the middle of 2023 “if there are no shocks,” Archil Mestvirishvili, the Vice President of the National Bank of Georgia, said on Monday at a meeting of the Sector Economy and Economic Policy Committee in Parliament.
Koba Gvenetadze, the Governor of the National Bank of Georgia, joined a conference involving central bankers and high-ranking representatives from states across the Baltic, Adriatic and Black seas in Poland to discuss monetary policy, economic consequences of the Ukraine war and other matters on June 10.
The Governor of the National Bank of Georgia, Koba Gvenetadze, said the Bank had taken "decisive and timely actions" and avoided "a worse situation" in response to the global challenges "that the world in general faces today", in comments released by the NBG on Monday.
Georgia’s banking sector has been “at the forefront” of implementing good corporate governance practices and helping to strengthen the country’s economic and financial development, says a new report by a joint World Bank-International Monetary Fund programme.
A latest report by the national bank of Georgia has said the country’s financial sector is maintaining stability and is lending to the economy “without interruption”.