Georgian National Bank has taken “decisive, timely actions” in response to global challenges - Governor
At a presentation of the World Bank’s 2022 report Global Economic Prospects, Gvenetadze spoke about the economic challenges faced by the world today. Photo: NBG
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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.
At a presentation of the World Bank’s 2022 report Global Economic Prospects, Gvenetadze spoke about the economic challenges faced by the world today.
Today, we are facing two crises - the pandemic and the war [in Ukraine]. For the first time in many years, inflation has become an obvious threat for numerous countries. Georgia - being a small, open economy - is facing multiple challenges simultaneously, ultimately resulting in high prices", Gvenetadze said.
Sebastian Molineus, the World Bank Regional Director for the South Caucasus, said the global economy was going through "some very difficult time" and the World Bank projected its growth to decline from about 4.1 percent to 2.9 percent this year.
"This decline in growth is mainly driven by high inflation, coupled with of course tightening of the monetary policy situation, rupturing of the global supply chains and of course amplified by the current war in Ukraine and sanctions regime against Russia”, Molineus noted.
“With that said, there is some good news. The Georgian economy has shown a great amount of resilience. We anticipate that the Georgian economy will grow by about 5.5 percent and possibly, even higher - that is an upgrade from our initial projection of about 2.5 percent", he said at the event.
The National Bank of Georgia on Thursday said it "categorically rules out" the possibility of individuals sanctioned in response to Russia’s invasion of Ukraine carrying out “any kind of financial transaction” using the Georgian banking sector.
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 Georgian economy is projected to grow 5.5 percent in 2022 and next year, followed by a 5 percent growth in 2024, the June edition of the World Bank’s Global Economic Prospects report has said.
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.
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.
Impacts of the ongoing war in Ukraine on the global financial system and challenges in the Black Sea region were discussed by Koba Gvenetadze, the Governor of the National Bank of Georgia, and the United States Ambassador Kelly Degnan on Tuesday.
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”.
With the involvement of experts from the World Bank, the national bank of Georgia has developed new transparency requirements for financial organisations operating in the country in a bid to ensure transparency of prices of financial products sold in combination and encourage competition in the market, the NBG said on Tuesday.
The National Bank of Georgia on Wednesday said media reports on a fine imposed by the body on a financial institution were “inaccurate” without the context of the recipient of the penalty being only one of entities to be fined over the recent years.