Page 6 - GEORptJun22

its meeting on May 11 kept the refinancing rate at 11%. “Increased inflation and inflationary risks again remain the global challenge of the last period,” the NBG said in a statement.
NBG on March 30 increased its key refinancing rate by 0.5pp to 11%. This decision was mostly driven by the rise in global commodity prices affecting Georgia via high oil prices as well as a wave of monetary policy tightening across the regional countries. NBG stressed that it is keeping the monetary policy stance tight, as increased inflation remains a challenge for Georgia.
There are 14 commercial banks in Georgia, including 13 foreign-owned entities, as of March 31, 2022. Compared to the previous month, the total assets of Georgian commercial banks (in current prices) increased by GEL98.04mn (0.2 percent) and constituted GEL61.79bn in March.
The aggregated net profit of Georgia’s banking system in January-October rose by 38% compared to the same period in 2019, to GEL 1.76bn ($567mn), according to the central bank. In the same period last year, the banks reported GEL85mn net losses, caused by the mandatory provisions set aside for the expected deterioration in the quality of their loans. Since then part of the provisions was released – which contributed to the robust profits in 2021.
On the political front, the de facto president of the Georgian breakaway region of South Ossetia on May 30 suspended an earlier announced referendum on whether the territory should become part of Russia. The postponement would be in effect until consultations with Moscow were complete, Alan Gagloyev said in a decree.
In other news, former Georgian President Mikheil Saakashvili, who is serving a sentence in Rustavi Prison, has been transferred to the Vivamed private clinic on 12 May amid reports of deteriorating health.
Georgian Finance Minister Lasha Khutsishvili refuted Kyiv's "completely incomprehensible" accusation that Georgia is negotiating with Russia on the re-export of Russian products on 2 May.
6 GEORGIA Country Report June 2022 www.intellinews.com