Tamar Ioseliani briefs US delegation on Anaklia Port construction plans

In February, compared to the previous month, term deposits increased by GEL 1.22 billion, or 3.85% (excluding the exchange rate effect, they increased by 4.13%), while demand deposits decreased by GEL 190.36 million, or 0.54% (excluding the exchange rate effect, they decreased by 0.09%).According to the NBG, the larization coefficient of deposits amounted to 54.03% as of the end of February 2026. Compared to the end of the previous month, the larization of deposits increased by 1.41 pp (excluding the exchange rate effect, it increased by 1.21 pp).In February, the average annual weighted market interest rate on term deposits amounted to 7.17%. Among them, 9.14% was on deposits placed in national currency, and 2.35% on deposits placed in foreign currency.The share of US dollars in deposits placed in foreign currency was 77.62%, and the share of EUR was 20.46%.

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During the same period, compared to the previous month, the volume of loans issued in the national currency increased by GEL 530.64 million (1.31%), while the volume of loans issued in foreign currency increased by GEL 123.99 million (0.41%) (excluding the exchange rate effect, increased by 1.32%).At the end of February 2026, commercial banks had issued loans to resident legal entities in the national currency of GEL 10.77 billion (0.81% more than the previous month), and in foreign currency of GEL 20.31 billion (0.39% more than the previous month) (excluding the exchange rate effect, increased by 1.27%).According to the data, during February 2026, the volume of lending to the resident household sector increased by 0.95%, or GEL 351.47 million, and amounted to GEL 37.17 billion by the end of February.In addition, by the end of February 2026, the larization ratio of total loans amounted to 57.78%. Compared to the end of the previous month, it increased by 0.22 pp. (unchanged after excluding the exchange rate effect).

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The NBG President briefed the mission members, led by Alejandro Hajdenberg, on the country’s macroeconomic situation, macroeconomic forecasts, and the current state of financial stability. Special attention was paid to global challenges, including the ongoing geopolitical situation in the Middle East.It was noted that Georgia faces these existing challenges against the backdrop of strong macroeconomic fundamentals. Furthermore, the scale, intensity, and duration of the spillover effects of these processes on the Georgian economy depend significantly on the further development of events.The objective of the current IMF mission is to review the existing macroeconomic situation in Georgia, as well as the country’s fiscal and monetary policies.The meeting with the International Monetary Fund mission was also attended by the Vice Presidents of the National Bank of Georgia, Ekaterine Mikabadze, Ekaterine Galdava, and Nino Jeladze, alongside Executive Director Beka Dochviri, the IMF Resident Representative in Georgia, Andrew Jewell, and the heads of various departments of the NBG.Within the framework of the visit, the IMF mission is scheduled to hold working meetings with the Macroeconomics and Statistics, Financial Stability, Financial Markets, Specialized Risks, and other departments of the NBG.

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The NBG reported that in February 2026, the NBG’s net purchases reached USD 429.3 million, while the country’s international reserves amounted to USD 6.65 billion.The NBG reconfirmed that international foreign exchange reserves serve as a vital safeguard for the country’s macroeconomic stability. Accordingly, the NBG consistently prioritises replenishing reserves, a commitment reflected in its stated policy. When market conditions permit, the Bank actively increases the country’s international reserves.Furthermore, the foreign exchange interventions conducted by the NBG in 2026 are as follows: January–February – USD 515.9 million net purchases through Bmatch. January – USD 86.6 million, and in February – USD 429.3 million.“Updated data regarding operations in the foreign exchange market will be published on April 27, 2026,” the National Bank of Georgia stated.

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“The reforms implemented in the country by the Government of Georgia and the NBG to develop the capital market were based on the principle that market growth and investor protection are parallel and equally important objectives. Accordingly, the aim of the reforms implemented in recent years was not only to increase issuances, but also to strengthen market reliability, transparency, and sustainability,” noted Ekaterine Mikabadze.The First Vice-Governor of the NBG also emphasized the importance of financial intermediaries in enhancing the inclusivity of the capital market. As she pointed out, increasing the participation of retail investors (individuals) in the public securities market particularly in segments where they are currently underrepresented requires, among other factors, the proactive involvement of brokerage companies and commercial banks. This includes simplifying access channels and reducing transaction costs.Alongside Ekaterine Mikabadze, the panel discussion featured David Urbaneja-Furelos, Head of the Asian Development Bank’s Private Sector Infrastructure Finance Group for the Caucasus; Irakli Nadareishvili, Deputy Minister of Economy and Sustainable Development; Giorgi Danelia, Chief Investment Officer of Wissol Group; and Ekaterine Kavtaradze, Director of Tegeta Holding.The second annual International Capital Markets Conference was held with the support of the National Bank of Georgia and brought together over 450 participants, including representatives of international financial institutions, investment banks, investors, issuers, and regulatory bodies.

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According to the regulation, the submission of a document confirming the GMP (Good Manufacturing Practice) standard for pharmaceutical products has become mandatory since October last year. Retailers were given until April 1, 2026, to sell off their stocks, but the business sector was unable to fully sell their stocks within the established timeframe.Business Arguments and New Deadlines According to the Pharmacists Association, based on consultations with the relevant ministry, the government has taken into account the challenge facing the sector. Under the new resolution, retail and wholesale sales (except for imports) of products whose registration was suspended due to lack of GMP standards are permitted until their expiration date.“Business was unable to sell the remaining products during this period, which is why we appealed to the Ministry and the government changed the decision,” the Pharmacists Association said.Tightening of GMP standardsDespite the exemption for the sale of remaining products, the rules for registering pharmaceutical products in Georgia are becoming stricter: From October 1, 2025: Any medicine that undergoes registration or re-registration must have a document of compliance with the European GMP standard. Scope of the requirement: The standard applies to both the final product and the substances used to manufacture it. Obligation: Compliance with this rule is mandatory for both local manufacturers and distributors. According to experts, the reform aims to bring the quality control of medicines on the market closer to European standards, although allowing the sale of surpluses during the transitional period will protect businesses from significant financial losses.

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The ministry also announced that the number of students admitted to master’s programmes at state universities will increase for the same academic year.“This adjustment will also impact master’s degree admissions, as most bachelor’s programmes have transitioned to a three-year study model. By the 2027–2028 academic year, the majority of students enrolled in 2024 and 2025 will complete their bachelor’s degrees. Consequently, the number of students eligible for admission to master’s programmes will rise in 2028–2029,” the Ministry explained.According to the ministry, the duration of general education is changing as part of ongoing reform. The secondary school level now comprises grades 10 and 11, with Year 12 becoming optional. Students who wish to continue into the 12th grade will be able to do so through prior registration.“Additionally, organised remedial classes will be introduced in schools for 11th graders, enabling students to prepare for national exams. This initiative will also benefit students currently in the ninth grade, who are actively engaged in their studies,” the Ministry’s statement reads.

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According to the NBG, heightened geopolitical tensions in the Middle East and substantial disruptions to transit through the Strait of Hormuz have temporarily disrupted traditional supply chains. On the one hand, these developments have already led to a marked increase in energy and shipping costs across international markets. On the other hand, if these dynamics persist, they could increase the risk of inflationary processes becoming more broad-based globally. Notably, before the escalation of geopolitical tensions, inflation dynamics were broadly in line with the NBG’s central scenario, under which inflation was expected to converge to the 3 per cent target from the second quarter of 2026 as temporary factors faded. Headline inflation in February 2026 stood at 4.6 per cent, as expected. Importantly, the contribution of food prices to inflation has begun to moderate, while measures of sticky prices and inflation expectations have remained broadly anchored around the target.However, amid ongoing geopolitical developments, the recent rise in oil prices has already been partially transmitted to the Georgian market and is expected to put upward pressure on headline inflation in March.Accordingly, under the NBG’s updated assessment, inflation is expected to be higher than in the central scenario in the short term. However, over the medium term, the projected path of inflation largely depends on the intensity and persistence of global inflationary pressures, which remain subject to considerable uncertainty,” the NBG has said.According to the Monetary Policy Committee’s assessment, the situation has shifted from the latest published central scenario to a high-inflation risk scenario, one of the key risks of which envisages higher oil prices amid escalating geopolitical tensions.“Notably, the severity and duration of inflationary pressures on the Georgian economy stemming from the geopolitical situation will largely depend on how these processes evolve going forward. It is also important to note that, despite recent developments, the sovereign risk premium indicator for Georgia has remained broadly stable at low levels, which, in turn, helps mitigate the impact of the external shock,” the NBG said.At this meeting, the Monetary Policy Committee also discussed high- and low-inflation risks relevant to the current situation.“Specifically, sustained high levels of energy prices would raise shipping and production costs globally, generating additional supply-side shocks. Under conditions of successive shocks, the risk of second-round inflationary effects also increases. In response to these developments, central banks in advanced economies may adjust monetary policy toward a tighter stance, which, in turn, could trigger capital outflows from emerging economies. Taking these factors into account, the risks of imported inflation in Georgia are expected to rise. Should these risks materialise, fundamental processes would necessitate a higher trajectory for the monetary policy rate.On the other hand, there are also signs of the realisation of low-inflation risks. In particular, inflationary pressures arising from geopolitical factors could be temporary. If disruptions in the Strait of Hormuz are resolved relatively quickly and supply from other oil-producing countries increases, energy prices may decline sharply from their peaks. Moreover, if Georgia’s sovereign risk premium remains low for an extended period, the external balance could further improve, exerting downward pressure on inflation. The realisation of low inflation risks would imply the possibility of easing the monetary policy stance.As a result of the ongoing macroeconomic analysis and consideration of existing risks, the MPC considered it optimal to leave the monetary policy rate unchanged at 8 per cent. Amid heightened uncertainty, the NBG will continue to actively monitor ongoing developments and the intensity of their transmission to the domestic market. If inflationary shocks stemming from the geopolitical situation persist and/or their scale amplifies the risks of second-round effects, the MPC stands ready to maintain the current tight stance for longer than expected and, if necessary, to tighten it further,” the National Bank of Georgia has said.The next meeting of the Monetary Policy Committee will be held on May 6, 2026.

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