Georgia’s Liberty Bank to take over sanctioned Russian VTB Bank’s legal entity loans, deposits
Customers of VTB Bank have already begun to receive services at branches of Liberty Bank since yesterday, with relevant messages sent to customers, the NBG says, noting “information will also be available at VTB Bank Georgia call centre and service bankers.” Photo: Imedinews.ge.
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Georgian Liberty Bank will take over some of the loans and deposits of sanctioned JSC VTB Bank Georgia, a part of the Russian VTB Bank Group, as a result of the agreement reached between the two banks, the National Bank of Georgia (NBG) announced on Thursday.
The NBG also said the banks would provide customers of VTB Bank with “detailed information individually,” adding small and medium business deposits and loans would be transferred to Liberty Bank per the agreement.
Customers of VTB Bank have already begun to receive services at branches of Liberty Bank since yesterday, with relevant messages sent to customers, the NBG says, noting “information will also be available at VTB Bank Georgia call centre and service bankers.”
We reiterate that the National Bank of Georgia is always in full compliance with the standards set by international resolutions and fulfils one of its primary tasks - to be the guarantor of the protection of each depositor in the Georgian financial sector,” the NBG further added.
Prior to the agreement reached between Liberty Bank and VTB Bank, the latter had reached the agreement with Georgia’s Basis Bank, based on which loans and deposits of individuals had been transferred to BasisBank from the Russian-owned bank.
The United States, European Union and various other countries worldwide imposed sanctions on the Russian financial system due to the Kremlin's military invasion of Ukraine that started on February 24.
Sanctions imposed against VTB limit operations for major Russian banks in dollars, euros, pounds and other currencies, with the restrictions coming into full effect on March 26.
Commercial banks in Georgia loaned 42.16 billion GEL and received deposits of 36.77 billion GEL in January 2022, the National Bank of Georgia (NBG) says.
JSC VTB Bank Georgia, which is a part of the Russian VTB Bank Group, is solvent and the interests of its depositors are fully protected amid the sanctions imposed on the Russian financial system by the United States, European Union and various other countries worldwide due to Kremlin’s military attack on Ukraine yesterday, the National Bank of Georgia (NBG) said earlier today.
The Consumer Price Index in Georgia increased by 1.1 percent in January 2022 compared to the previous month, while the annual inflation rate stood at 13.9 percent, the latest inflation data of the National Statistics Office of Georgia (Geostat) shows.
The National Bank of Georgia (NBG) has decided to keep the refinancing rate unchanged at 10.5 percent at a meeting of the Monetary Policy Committee (MPC) earlier today. A “particular concern” for increased inflation was named by the bank in its comments, with the Consumer Price Index growing by 0.3 percent in December 2021 and the annual inflation rate amounting to 13.9 percent in the country.
The National Bank of Georgia (NBG) has denied the information on an alleged termination of financial transfers from European countries to Georgia, calling it a “lie and an attempt to mislead the citizens” on Wednesday.
The National Bank of Georgia has notified the public about an increase in the number of cases of phishing, urging customers to use caution while sharing their personal and financial data online.
The Georgian branch of Russia’s state-owned VTB Bank is leaving the Georgian market, Andrey Kostin, the President and Chairman of the Bank's Management Board, told Russian news agency Interfax.
The National Bank of Georgia has warned the public about an increase in cases of phishing and urged internet users to be careful when entering their personal and banking information on websites.