Page 46 - GEORptJun20

revenues from international travelers declined by almost 70% y/y.
There was also a decrease in remittances (-9% y/y). At the same time, imports declined 13% y/y, indicating a weakening in domestic demand.
The NBG said that expected substantial donor support will help mitigate the impact of the shock on economic activity and inflation.
Considering the current level of uncertainty, both credit and liquidity risks have increased, which has been reflected in the growth of market interest rates.
To ensure that liquidity risk does not limit credit to the economy, the NBG introduced additional instruments to provide liquidity, through swap operations for both commercial banks and microfinance organisations.
8.3 ​Stock market
Georgian central bank announces new regulations as part of capital market reform
The National Bank of Georgia said on July 18 that it has drawn up two new regulations governing brokerage companies.
The aim of the regulations — the Rule of Licensing and Regulation of Brokerage Company and the Additional Rule of Regulation of Brokerage Companies Involved in High-Risk Financing Instruments — is to raise standards of service in the sector, and to protect investors’ interests and allow them to make well-informed decisions. They were drawn up as part of ongoing capital market reforms.
“It is noteworthy that the established requirements fully address the challenges in the sector and also reflect the principles of the EU Directives, International Organisation for Securities Commissions (IOSCO) and European Securities and Markets Commission (ESMA) regulations,” the NBG said in a July 18 statement​.
The rules are mandatory for all licensed brokerage companies, but due to their complexity active brokerage companies have been given a transition period during which they have to bring their work into compliance with the legislation.
46​ GEORGIA Country Report ​June 2020 ​ ​www.intellinews.com