Page 43 - GEORptAug22

With regard to the annual core inflation, the prices increased by 5.8% y/y, while the annual core inflation without tobacco amounted to 6.6% y/y.
8.3 Capital market
Georgia’s central bank successful in de-dollarisation, responsible lending, says World Bank
Georgia market cap at USD775mn in May 2022
The World Bank, within the framework of the Financial Sector Assessment Programme (FSAP) has given a positive assessment to the work of the National bank of Georgia (NBG) under the FSA Assessment Report.
Successes in de-dollarisation and more responsible lending are highlighted, while the development of capital markets is seen as a target to be pursued in the future.
According to the document, there has been a strong focus on the development of the capital markets in Georgia in the last few years already.
Well-developed domestic capital markets could contribute to Georgia’s sustainable economic growth, the WB argues. In the context of bank dominance in the financial sector and still high dollarization, capital market development could also contribute to more effective mobilization of domestic savings, diversification in the sources of financing for the corporate and household sector, including access to debt in longer tenors.
According to the World Bank report, significant progress has been made since 2017 towards implementing a risk-based supervisory framework, supported by the issuance of a Code of Corporate Governance and the introduction of a General Risk Assessment Programme (GRAPE) assessment.
NBG has taken positive steps to respond to promote fintech development, including establishing a fintech directorate to monitor market developments, track potential risks, and initiate several fintech-related initiatives.
23 companies are admitted on the Georgian Stock Exchange (GSE) and Georgia market capitalisation accounted for USD775mn in May 2022, compared to USD748.5mn in the previous month, according to the GSE.
43 GEORGIA Country Report August 2022 www.intellinews.com