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term.
In December, the annual inflation rate was 1.5% y/y. According to existing forecasts, inflation will move around the 3% y/y target rate in the medium term. The central bank said in a press release that it plans another rate cut during this year.
External demand strengthened during 2018 with a positive impact on growth, but the Georgian economy lost momentum during H2, the central bank noted. The annual increase in the export of goods was 23% in 2018, while tourism revenues grew by 18% in the same period.
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.
When outlining his governing programme on July 15, Prime Minister Mamuka Bakhtadze said the government will work with the central bank on capital market reforms.
35 GEORGIA Country Report March 2019 www.intellinews.com