EBRD To Fund ProCredit bank With 25 MLN EUAR

Since 2018, the National Bank of Georgia's inflation target has been 3%.The NBG asks us1) By what percentage do you think the price of the products/services you sell will change in 1 year compared to today?By more than 8% or less than 6%?2) By what percentage do you think the consumer price level will change?5) By what percentage do you think the salaries of employees in your company will change over the next year?The questionnaire contains 5 questions, the answers to which will help the regulator to learn about the expectations of citizens.At the end of the questionnaire there is a recommendation field, which the citizen can fill in or not, as desired.

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The ministry stated that the new deadline has been set for February 1, 2031.“An amendment has been introduced to the Government of Georgia’s Decree No. 106, dated March 12, 2026, which regulates the prohibition of the manufacture, import, and market placement of certain plastic products intended for contact with food.Under this amendment, the deadline to enforce the ban on serving drinks in plastic bottles at catering venues has been extended by four years, with the new effective date established as February 1, 2031.Under the original March decree, the restriction was slated to take effect today, July 1, 2026. The decision to grant this extension was reached following supplementary consultations with the private sector, business associations, and other relevant stakeholders,” the Ministry of Environmental Protection and Agriculture stated.

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“From August-September of this year, the company will start processing exclusively non-Russian crude oil. This step will provide Black Sea Petroleum with access to profitable markets for its products,” the statement said.According to the company, the volume of oil refined at the plant in the first half of 2026 exceeded 650,000 tons.In addition, BSP has expanded its cooperation with international technology corporation Honeywell, which includes the supply of equipment and the implementation of automated control systems.The company also announced plans to expand production.“In the first quarter of 2027, the refinery plans to start producing road bitumen for the domestic and export markets, and from the second quarter - to produce aviation kerosene,” the BSP statement said.The Kulevi oil terminal, located between Poti and Anaklia in Khobi municipality, which has been operating for decades, is owned by Azerbaijan’s state oil company SOCAR (operated by Black Sea Terminal Company).The terminal handled 2.2 million tons of crude oil, oil products and petrochemicals in 2025, and SOCAR has announced expansion works here in 2026.The oil refinery (ORF) in Kulevi began operating in 2025. Prime Minister Irakli Kobakhidze also attended the project presentation in October 2024. The state-owned Development Fund of Georgia and Bidzina Ivanishvili’s Cartu Bank participated in financing the plant.In October 2025, the Russian investigative publication Proekt (Project) published an article discussing the connections of the family and business partners of the owner of the Kulevi oil refinery with the leadership of the Russian Military Intelligence (GRU). In particular, according to the material, the owner of the plant, Maka Asatiani, and his partners are connected to Russian multi-billion dollar oil and logistics businesses, and a member of the partner’s family is the deputy head of the Main Directorate of the Russian General Staff (GRU).At the same time, in October 2025, the newly built Kulevi refinery received its first batch of raw materials from the Russian private company Russneft. Two months later, on December 16, 2025, the British government imposed international sanctions on Russneft, along with other major Russian oil companies.According to experts, Black Sea Petroleum’s decision to completely abandon Russian oil and switch exclusively to non-Russian raw materials is related to avoiding these international sanctions and maintaining access to Western, highly profitable markets.

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The Georgian side stressed that such illegal actions are null and void, constitute a gross violation of international law, and undermine efforts to achieve constructive dialogue.During the talks, the Georgian delegation reiterated the need for the full implementation of the August 12, 2008 ceasefire agreement and the safe, dignified return of internally displaced persons (IDPs) and refugees to their homes. The delegation also raised concerns over the deteriorating humanitarian and human rights situation in the occupied regions and called for the unconditional restoration of the Incident Prevention and Response Mechanism (IPRM) in Gali.According to the Ministry, representatives of Russia and the occupation regimes once again left the negotiating table when the issue of the return of refugees and IDPs was raised, continuing what Tbilisi described as their longstanding destructive approach.The 68th round of the Geneva International Discussions is scheduled to take place on November 10–11, 2026.Russian President Vladimir Putin and the so-called South Ossetian leader Alan Gagloev signed the so-called agreement on deepening cooperation on May 9, 2026, and Russia’s State Duma ratified the document just four days later, on May 13.Georgian Foreign Minister Maka Bochorishvili condemned the move during the 135th Session of the Council of Europe Committee of Ministers on May 15, stating that the Kremlin was once again disregarding its international obligations and taking further steps toward the annexation of Georgia’s occupied regions.Shortly after the signing of the so-called agreement, it was announced on June 23 that Alan Gagloev had stepped down as the so-called president of the occupied Tskhinvali region and had been appointed an adviser to the Russian president. Earlier, the so-called prime minister had also been replaced by Marat Kambolov, a representative of Russia’s Republic of North Ossetia. According to some analysts, these appointments indicate Moscow’s efforts to tighten its direct control over the occupied region.

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According to the Minister, completely new textbooks will be published in humanitarian and STEM subjects at all levels by September 15, 2028. According to the Ministry's decision, one and the same textbook will be used in the same level and subject, both in public and private schools. As a result of the ongoing work, first-graders, 7th and 10th graders will already have new books by the start of the new academic year.According to the new concept, visuals carrying national values ​​will be placed on the covers of textbooks. In particular, the cover of the chemistry textbook will depict the traditional winemaking process, and its chemical description on the back cover. The physics textbook will include Elguja Medzmariashvili's invention - the launch of the first Georgian satellite into space. In addition, the books include more than 500 new illustrations that concern Georgian architectural monuments.In addition, the Ministry is starting to introduce the culture of wearing uniforms in schools, which will be extended to grades one through six this year, and then one grade will be added each year. The provision of uniforms will be carried out in three stages: on September 15, all first-graders will come to school in new uniforms decorated with the state emblem, and during the first semester, all students from grades one through six will be provided with uniforms.As a result of market research and a tender, an agreement was signed with the number one manufacturer of school uniforms in China after the first identified company failed to submit complete documentation. According to the Minister, the price of uniforms will be several times cheaper than uniforms of private schools, and all families that are rated by the Ministry of Health with 65,000 or less rating points and have a primary school student will receive uniforms completely free of charge.The first samples presented by the company have passed international quality testing and will also be tested in Georgia. According to the Minister, the polyester in the fabric is mixed with natural materials, which increases durability, and all jackets, trousers and skirts have anti-allergic lining. The models fully comply with international standards, and sales points will be opened in regions and cities in advance.

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In May-26, primary market demand remained broadly flat. Notably, the number of apartments sold increased slightly, while sold area declined, reflecting a decrease in the average size of apartments sold in May. Sales on the secondary market increased significantly and reached the fifthhighest level after 2023. On the supply side, the living area of issued permits declined for the 8th consecutive month. Primary market price continued to increase at a moderate pace, while secondary market price recorded a slight decline, indicating partial stabilization after April’s sharp increase.DemandIn May-26, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 3,748 units, of which:• Sales on the secondary market increased significantly by 12.4% y/y to 1,924 (up 14.7% y/y in 5M26) partly reflecting the low base of last year.• Sales on the primary market, where data are impacted by delayed registrations, were up 9.7% y/y to 1,824 (up 12.9% y/y in 5M26).• Our real-time survey of developers, which captures current trends on the primary market, showed that number of apartments sold on the primary market was up 2.5% y/y, while sold area declined, reflecting a decrease in average apartment size in May.Cumulatively, the number of apartments sold on the primary market was up 22.1% y/y in 5M26. In total, 18,296 transactions were registered in Tbilisi in 5M26, bringing the residential market value to US$ 1.6bn (+21.9% y/y).SupplyIn May-26, construction permits were issued for 23 residential projects, with total living area of 165,484 sq.m (-18.4% y/y). Notably, the living area of issued permits has contracted annually for the 8th consecutive month, signalling a normalization after previously elevated levels. Overall, living area of permits in 5M26 was down 34.4% y/y.PricesIn May-26, primary market price increased moderately, up 0.3% m/m to US$ 1,412 per sq.m. The average price on the secondary market (for new buildings built with permits issued from 2013) was down 0.3% m/m, reaching US$ 1,366 per sq.m, indicating partial stabilization after a sharp 5.0% increase in April.RentsIn May-26, price for renting an average (50-60 sq.m) apartment in Tbilisi was at US$ 9.9 per sq.m (-0.2% m/m), keeping rental yield high at 8.4%.

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Balance of goods remains the main driver of the current account balance. Relative to GDP, it improved by 3.4 percentage points compared to the first quarter of 2025. Trade in goods deficit decreased by 1.8 percent year-on-year, amounting to USD 1.7 billion (GEL 4.6 billion) in the first quarter of 2026. Export of goods increased by 23.8 percent and import by 11.4 percent.The current account balance is negatively affected by the trade in goods and primary income, while trade in services and current transfers contribute positively.In the first quarter of 2026 the services surplus rose by 9.8 percent, or USD 77.9 million, compared to the same period of the previous year, reaching USD 876.1 million. Total export of services increased by 7.2 percent year-on-year, reaching USD 1.8 billion (GEL 4.8 billion) in the first quarter of 2026. The travel services exports amounted to USD 829.8 million (GEL 2.2 billion) representing an annual increase of 0.5 percent. Particularly noteworthy was the growth in exports of computer and information services by 65.7 percent year-on-year to USD 441.3 million, equivalent to 4.8 percent of GDP. Transport services exports remained an important component of Georgia's services exports reaching USD 333.4 million, or 3.6 percent of GDP in the first quarter of 2026.Net income account totaled USD -423.2 million (GEL -1.1 billion) in the first quarter of 2026. Net compensation of employees, the positive component of income account increased by 45.8 percent year-on-year while net investment income - the negative component declined by 12.0 percent over the same period.The current transfers account remained in surplus in the first quarter of 2026. Credits of current transfers increased by 7.1 percent year-on-year, reaching USD 937.1 million (GEL 2.5 billion). Net transfers of the private sector also continued to grow, rising by 8.5 percent to USD 884.4 million (GEL 2.4 billion).The current account deficit is predominantly financed by foreign direct investment. Net foreign direct investment amounted to USD 160.9 million (GEL 434.2 million) in the reporting period, accounting for 1.8 percent of GDP.

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Public sector external debt amounted to 11.6 billion USD (31.3 billion GEL) or 29.4 percent of GDP, out of which, debt of the general government amounted to 9.1 billion USD (24.6 billion GEL) or 23.1 percent of GDP. External liabilities of the National Bank of Georgia amounted to 772.8 million USD (2.1 billion GEL) or 2.0 percent of GDP, and the bonds and loans of public enterprises were correspondingly 481.8 million USD (1.3 billion GEL) or 1.2 percent of GDP and 1.2 billion USD (3.4 billion GEL) and 3.2 percent of GDP.Banking sector external debt amounted to 9.8 billion USD (26.5 billion GEL) or 24.8 percent of GDP; Other sectors’ external debt stood at 5.0 billion USD (13.4 billion GEL) or 12.6 percent of GDP; While 2.5 billion USD (6.6 billion GEL) or 6.2 percent of GDP was the intercompany lending. 85.6 percent of the gross external debt of Georgia was denominated in a foreign currency.The net external debt of Georgia amounted to 12.5 billion USD (33.8 billion GEL) or 31.8 percent of the last four quarters’ GDP. Net public sector external debt was 5.3 billion USD (14.3 billion GEL) or 13.4 percent of GDP.External debt of the National Bank of Georgia decreased by 8.1 million USD, out of that, exchange rate changes decreased the debt by 7.5 million USD and transactions lead to its decrease by 617.6 thousand USD. As of the end of the first quarter of 2026, Special Drawing Rights (SDR) accounted for USD 470.8 million of the National Bank of Georgia's external liabilities. Since SDRs have no maturity date, there is no obligation to repay them as long as Georgia remains a member of the IMF.

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