Page 33 - GEORptJul19

Profit of Georgian insurers doubles in 2018
“This is ADB’s second project with Credo and it allows the bank to expand its services to small business and rural household customers, most of whom are women,” said ADB lead investment specialist for private sector operations Rainer Hartel.
“We are proud to work with Credo Bank to reach underserved regions, boosting economic activity and affordable housing to enhance Georgia’s sustainable and inclusive growth.”
Credo is a financial service provider for households as well as micro and small enterprises (MSEs) in Georgia, serving about 230,000 MSE borrowers, 50% of whom are female. It has an average loan size of GLE 2,300.
The net profit of Georgia's insurance sector expanded by 107% to Georgian lari (GEL) 42.2mn ($15.66mn) in 2018, according to a report from the insurance supervision service.
The volume of insurance premiums attracted during the year was GEL542.2mn from direct insurance activities, compared to GEL441.4mn in 2017.
Insurance companies' assets amounted to GEL743.2mn and their capital was GEL221.6mn at the end of 2018. One year earlier, the company's assets were GEL580.2mn and their capital was GEL154.2mn.
As of 31 December 2018, 17 insurance companies were registered. Sixteen have life and non-life insurance licences, while one has only a non-life licence.
8.2 Central Bank policy rate
Georgia’s central bank sticks with policy rate of 6.5%
Georgia’s central bank on June 12 kept its key refinancing rate at 6.5%. The national lender cut the rate to 6.75% in January and 6.50% in March and kept it unchanged in May.
Although preliminary data indicates increased economic growth in Georgia, demand side pressure on inflation remains weak, the central bank said in explaining its rates decision. The growth of credit activity remained moderate, it added. Since early 2019, consumer loans and mortgages in foreign currency have declined, but on the upside, business loans continued to grow and mortgage activity was up, the central bank also said.
The country’s competitive exchange rate supports an improvement in the current account balance, the central bank said in further comments, referring to a slight local currency weakening that prompted government concerns.
The preliminary data indicated high growth in the export of goods and services. Growth of remittances was also significant—it is likely to partly offset pressures generated by the depreciation in the Georgian lari.
Annual inflation accelerated to 4.7% in May (with a significant contribution from one-off factors, the central bank said). It moved up from 4.1% in the preceding month and 2.5% a year ago.
Inflation will remain above the 3% target throughout the year and ease no sooner than 2020, the central bankers said at their May monetary board meeting. The national lender consequently envisaged moderate 50bp rate cuts over the next two years, taking the benchmark rate to 6.0% by Q1 2021. The rate-setters held the benchmark interest rate at 6.50% on May 1, citing forecasts that suggested annual inflation would stay “close to its 3% target” this year.
33 GEORGIA Country Report July 2019 www.intellinews.com