"Aldagi" was in the second place with 20.9 million GEL, it occupied 32% of the market. The third and fourth places were occupied by "Imedi L" and "GPIi", respectively with 5.4 million GEL and 2.7 million GEL. "Irao" completes the top five, the company had raised 1.5 million GEL and held only 2% of the market.During 9 months of 2023, the insurance premium collected from direct insurance activities amounted to 818 million GEL, and in the third quarter of 2022 it was 704 million GEL.According to the results of 9 months of this year, the insurance profit of the insurers was 190.9 million GEL, and the net profit was 63.5 million GEL, while in the same period last year, the insurance profit was 157 million GEL, and the net profit was 35 million GEL.The total amount of assets of insurance companies is 1.314 billion GEL, and the capital is 370.2 million GEL. In the third quarter of 2022, assets were 1.152 billion GEL, and capital was 341 million GEL.As of September 30, 2023, there are 18 registered insurance companies holding life and non-life insurance licenses.
In the pre-pandemic period, it was more than 75%, and at the moment all conditions are created for investing more financial resources in the economy.According to her, low inflation and sustainable growth create an optimal moment to allow more flexibility for the banking sector. Now is a good time to increase liquidity without putting additional pressure on the economy.According to the NBG statistics, banking sector assets have decreased to 91.4% of GDP. The ratio of deposits and loans to GDP exceeds 64%.In annual terms, the share of deposits has increased, the loan portfolio has decreased.The ratio of monetary aggregates to GDP was the highest in the post-pandemic spring of 2021, when banking sector assets exceeded GDP by 17%. Post-pandemic, by 04/2021 the ratio of deposits was up to 73%, and loans exceeded 78%.
"Low inflation is the result of lower inflationary expectations and lower local inflation amid tight monetary policy. Also, during the last year, the strengthening of the lari exchange rate, together with the gradual reduction of the effects of external shocks, significantly contributed to the decrease of imported inflation and led to a decrease in overall inflation. It should be noted that the government's policy aimed at fiscal consolidation and measures aimed at strengthening competition in individual commodity markets made a positive contribution to the process of reducing inflation," Natia Turnava noted.As of November 2023, headline inflation is 0.1 percent, and core inflation is 1.8 percent. According to the current macroeconomic forecast of the National Bank, until the end of 2023, inflation will remain below the target rate of 3%. Finally, in the medium term, inflation will stabilize around the 3% target. It is worth noting the fact that the ratio of credit activity to GDP is lower than the trend."At the current stage of development of Georgia's economy, the target rate of inflation from 2018 is 3%, which is a long-term target rate for us. The inflation target of 3% is a medium-term indicator. Focusing on the medium term is of particular importance. Due to the fact that shocks are constantly occurring, inflation will be different from the target level for the most part, however, as a result of the policy implemented by the National Bank, it will always move towards this indicator in the medium term," noted Natia Turnava.The Acting President of the National Bank presented to the Finance and Budget Committee of the Parliament today, in accordance with the Organic Law of Georgia "On the National Bank of Georgia", the draft of the main directions of monetary and credit and currency policy for the next three years. tools and the current macroeconomic environment and risks are reviewed.
"This year, the foreign exchange reserves of Georgia are at the historical maximum and within the adequate level. As of October, the volume of international currency reserves equaled USD 5.1 billion. Keeping foreign exchange reserves at an adequate level helps to minimize the country's sovereign risk, which is a positive factor for investments and macroeconomic stability. It is for this purpose, in order to soften the excess fluctuations against the background of the recently increased foreign currency inflows and to maintain the international currency reserves within the adequate level, during 2023, the National Bank, compared to previous years, is more actively replenishing the international currency reserves", Natia Turnava noted.According to her, as of October 2023, taking into account all interventions, international reserves will amount to USD 1.292 billion.The Acting President of the National Bank presented to the Finance and Budget Committee of the Parliament today, in accordance with the Organic Law of Georgia "On the National Bank of Georgia", the draft of the main directions of monetary and credit and currency policy for the next three years, tools and the current macroeconomic environment and risks are reviewed.
While presenting the report, Natia Turnava talked about the importance and ways of achieving the target, short-term interest rate as close as possible to the monetary policy rate in the money market.According to her, it is important to reflect the change in the monetary policy rate on the market interest rates for the strength of the transmission of the monetary policy carried out by the National Bank to the real economy. As Natia Turnava mentioned during her speech at the committee, the changes implemented in the recent period have already produced certain results.From May 2023, after the tendency of not only imported but also local inflation to decrease, the National Bank started exiting the strict monetary policy with cautious bids. In total, the monetary policy rate has been reduced by 1 percentage point since May and is 10 percent as of November.According to Natia Turnava, in order to curb high inflation last year, the National Bank, in addition to the monetary policy rate, used other additional tools, which successfully temporarily slowed credit activity and helped to reduce inflation through this channel."Given that this year inflation is low and in the medium term, we expect, it will be close to the target of 3 percent, other things being equal, there is no need to increase credit activity with additional instruments. It should also be noted that the ratio of credit activity to GDP is lower than the trend. That's why we increased the maturity of consumer loans to 4 years," Natia Turnava said.The Acting President of the National Bank presented to the Finance and Budget Committee of the Parliament today, in accordance with the Organic Law of Georgia "On the National Bank of Georgia", the draft of the main directions of monetary and credit and currency policy for the next three years. tools and the current macroeconomic environment and risks are reviewed.
In January-September, the regulator's net foreign exchange purchases reached 1.5 billion USD.In October, the net sales of foreign currency by the National Bank, as well as the government's foreign exchange expenditures, including external debt servicing, led to a decrease in official international reserves by USD 154.4 million per month, to USD 5.1 billion.In October, with internal governmental conversions in the banking system, the net foreign exchange sales of the National Bank amounted to 59.4 million USD. The National Bank sold 84.9 million USD through foreign exchange interventions, on BMatch - $13.4 million.With interventions and the BMatch mechanism, net foreign assets of approximately USD 157.7 million decreased.NBG’s Share In Total Foreign Exchange Trade By Months (2023)
By the new decision of the NBG, commercial banks will not be able to advertise pension-secured loans, i.e. share content that would offer a loan to customers on the basis of pension or other social payments.The purpose of the change is protecting the so-called vulnerable groups from uninformed decision-making and debt burden. This will support the formation of an environment favorable to consumers and introduce a high standard of protecting their rights.
Vakhtang Butskhrikidze, CEO of JSC TBC Bank, said: "We are proud to announce completion of another excellent transaction with Proparco- already our third successful project together. This Facility reflects both institutions' strong commitment to support the sustainable growth of local businesses, particularly improving access to finance for female entrepreneurs and promoting green investments in Georgia, thereby, contributing to job-creation and bringing long lasting benefits to the country. The signing of this facility is a significant milestone in our partnership, and we look forward to working with Proparco on many more successful deals in the future."Stéphane Froissardey, Regional Director for Turkey, Caucasus, Central Asia, Balkans and Eastern Europe, said: "Proparco is very proud to sign this new EUR 100 million transaction with TBC Bank. This facility will support TBC's efforts to grow its sustainable portfolio, targeting both climate and gender finance, which are key priorities for Proparco in the region. This landmark transaction is by far Proparco's largest financing in the country, following which Proparco is becoming TBC's third largest lender. Proparco's facility represents a commitment from France to support responsible and sustainable players in the financial sector and, more generally, to stand by the Georgian nation as a whole, at a critical time when Georgia is being granted candidate status by the EU."
The regulation of shortening the term to 3 years has not been applied to this revolving loan product, which is issued with a term of up to 4 years. The annual rate of the credit limit charged to it is within 28-38%.A decrease in the ratio can be observed since last year. It peaked at 10.6% during the pandemic and has been declining ever since.As of July, 430 million GEL credit cards were issued, and as of November, the balance on active cards amounted to 444 million GEL.According to the NBG, the number of credit plastic cards decreased to 560,000. There are 140,000 units of active VISA credit cards in circulation and up to 73,000 of Mastercards.Non-performing loans - credit cards
According to the data of 9 months, in terms of the amount of compensated insurance losses, "GPI" is in the first place with 83 million GEL, "TBC" is in the second place - with 57 million GEL, and "Ardi" is in the third place with 56 million GEL.There are changes in the insurance market in the direction of the insurance premium volumes. In particular, in the top five largest insurers, "Aldagi" overtook "Imedi L" and took the fourth place. "BB Insurance" also moved from the last places to the sixth place.
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The Georgian official was invited to the event as a special guest by Aliyev, the Government Administration said.Their meeting discussed the “strategic” cooperation in trade, economy, energy, transport and logistics, as well as prospects for development of the Middle Corridor - a transportation route network connecting China with Europe through the South Caucasus region - through modernisation of railways and expansion of ports and roads.The meeting noted Azerbaijan was one of the “leading” trading partners of Georgia.The construction of the East-West Highway in Georgia and the Baku-Tbilisi-Kars railway project were also among the discussed topics. The officials said the railway would become a part of the Europe-South Caucasus-Asia railway corridor in the future.The meeting also discussed the Black Sea submarine electricity cable project, intended to connect the grids of the South Caucasus and European Union member states.Garibashvili and Aliyev reviewed security issues in the region and the wider world and expressed hope for a peace agreement between Azerbaijan and Armenia over their long-running conflict over the Nagorno-Karabakh region “very soon”.
European Commission recommends that European Council grants Georgia ca...
The Commission recommends that the Council grants Georgia the status of a candidate country on the understanding that a number of steps are taken.The press conference in Brussels, at which Von der Leyen and European Commissioner for Enlargement Olivér Várhelyi will present the report on EU enlargement to the media, started a few minutes ago.
Georgian PM to feature at European Political Community Summit
Garibashvili will take part in thematic discussions planned at the Summit in a round table format, the Government Administration said.The Government head will also hold “high-level” bilateral meetings within the framework of the Summit that will take place between Thursday and Friday.At the first meeting in October 2022, leaders mainly discussed peace and security issues, with an emphasis on Russia's war in Ukraine and the energy crisis. At the June 2023 edition they discussed joint efforts for peace and security, energy resilience and connectivity and mobility in Europe.
Georgian PM, Turkish President review security matters, strategic part...
Garibashvili noted the two countries had achieved “significant” progress in cooperation, reflected in both economic and political dimensions, the Government Administration said.The Georgian official stressed the existing regional projects were a “clear” example of “effective” strategic cooperation, sustainable development and reliable partnership between the two countries that would bring “more economic independence, security and prosperity” to both countries.The officials also reviewed the security environment in the Black Sea region, with Garibashvili emphasising the importance of settling issues through peaceful negotiations.He also extended his gratitude to Erdoğan for his “strong” support for Georgia's sovereignty, territorial integrity, as well as EU and NATO integration.
President delivers her annual report in parliament
According to Zourabichvili, the Georgian government gradually transformed.“Instead of strengthening state institutions, being the cornerstone of democracy, the one-party system and its influence get stronger. Laws adopted in an expedited manner (on covert recordings, abolishment of state inspector, changes in the rule for appointment of judges and foreign agents bill) serve your power’s prolongation instead of serving democracy strengthening and citizens’ welfare. The court reform, vital for the country’s future, is at a deadlock,” President said.Salome Zourabichvili went on to say that the ruling party members speak in unison, and those having different viewpoints, tend to quit the party.“The party influence is evident in the government and parliament. The party turned into a decision-making space. The party chairman announces his standpoint on all political issues in advance, and the decision-making process is vague, not to mention open discussions.You are the government confronting the country’s foreign goal, the people’s mandate. By inviting Gavrilov (Russian MP) in 2019, you raised doubts and questions for the first time, though the actual transformation began in 2021 when the Georgian Dream former Chairman Bidzina Ivanishvili quit politics,” she said.President also recalled the annulling of the document drafted with the engagement of the European Council President and rejection of the EU loan.“You have never stopped the anti-European rhetoric, blaming and insulting our partners. All this finally came to the extent that we expelled the former EU ambassador from the country with reprimands and accusations,” Zourabichvili stated.