Khutsishvili briefed the Luxembourg Finance Minister on Georgia's macroeconomic situation

“Earlier, on June 13, 2025, the Georgian Ministry of Foreign Affairs issued an official statement in response to the escalating situation in the Middle East.We are deeply concerned about the growing tension in the Middle East, which poses a serious threat to regional security. We underscore the importance of diplomatic efforts aimed at de-escalation and the restoration of stability.On June 26, 2025, the Iranian Embassy sent an official note to the Georgian Ministry of Foreign Affairs regarding the opening of a book of condolences at the Embassy. A corresponding entry was made in the book of condolences opened in Tbilisi regarding the deaths of Iranian citizens,” the statement reads.

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The annual inflation rate was mainly influenced by price changes for the following groups:Food and non-alcoholic beverages: the prices in the group increased by 10.1 percent, contributing 3.34 percentage points to the overall annual inflation rate. Within the group, the prices increased for the following subgroups: vegetables (26.3 percent), oils and fats (20.6 percent), coffee, tea and cocoa (15.4 percent), mineral waters, soft drinks, fruit and vegetable juices (10.3 percent), bread and cereals (9.6 percent), sugar, jam, honey, chocolate and confectionery (8.7 percent), fish (7.9 percent), milk, cheese and eggs (7.1 percent), meat (3.6 percent), fruit and grapes (2.7 percent);Health: the prices increased by 9.4 percent, contributing 0.79 percentage points to the overall index. The prices were higher for the following subgroups: out-patient services (10.4 percent), hospital services (9.2 percent), medical products, appliances and equipment (8.4 percent);Miscellaneous goods and services: the prices for the group increased by 6.7 percent, contributing 0.33 percentage points to the overall index. Within the group, the prices were higher mainly for the following subgroups: personal effects n.e.c. (18.2 percent), insurance (8.7 percent), financial services n.e.c. (5.4 percent), personal care (4.7 percent);Transport: the prices for the group decreased by 5.3 percent, contributing -0.64 percentage points to the overall index. Within the group the prices decreased for operation of personal transport equipment (-8.1 percent) and transport services (-0.8 percent).

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The shares will be purchased in the open market and the cancellation of the treasury shares will be executed on a monthly basis.The purpose of the buyback is to reduce the share capital. Under the buyback programme, the maximum price paid per share will not exceed the latest reported NAV per share amount.The USD 18 million increase to the existing share buyback and cancellation programme will complete the Company’s previously announced intention to commit GEL 300 million to capital returns through the end of 2026, significantly ahead of schedule.As announced on 26 June 2025, the Company will announce the use of proceeds from the exercise of its option to put a 20% equity stake in Georgia Global Utilities JSC following the receipt of funds at the end of July.In accordance with the authority granted by the shareholders at the 2025 annual general meeting (“AGM”), the maximum number of shares that may be repurchased is 5,233,275.The programme is conducted within certain pre-set parameters, and in accordance with the general authority to repurchase shares granted at the 2025 AGM, Chapter 12 of the FCA Listing Rules, and the provisions of the Market Abuse Regulation 596/2014/EU and of the Commission Delegated Regulation (EU) 2016/1052 (as they form part of UK domestic law). The programme is extended by three months, until 2 October 2025.The Company has appointed Numis Securities Limited (“Deutsche Numis”) to manage an irrevocable, non‐discretionary share buyback programme until the end of the programme. During closed periods the Company and its directors have no power to invoke any changes to the programme and it is being executed at the sole discretion of Deutsche Numis.Georgia Capital exercises its option to put a 20% stake in the water utility business Georgia Capital PLC ("GCAP" or the “Company”) announces today that its wholly owned subsidiary, JSC Georgia Capital ("JSC GCAP"), has exercised its option to put a 20% equity stake in Georgia Global Utilities JSC ("GGU"). In accordance with the terms of the shareholders’ agreement, the majority shareholder, Aqualia Georgia LLC ("Aqualia"), is to pay JSC GCAP a put option price of USD 70.4 million, determined pursuant to the pre-agreed calculation mechanism. 

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As of 01.06.2025, the annual change in retail consumer lending is +24.3% (01.06.2024 - +28.2% Y.Y).In addition, compared to last year, loan rates have increased, which is due to internal unrest and deteriorating sentiment. Credit resources have become more expensive. In addition, regulations, including several rounds of restrictions on foreign currency lending, up to 750,000 GEL, which will come into effect from August and, according to the NBG, should reduce foreign currency lending by $150 million.This, like all other regulations, will be transferred to GEL loans immediately and will be reflected in the standard increase in loan rates.According to banks, the minimum rate for a consumer unsecured (up to 4 years) loan (6 months) is determined from 13% (effective 22%). A 2-year annual loan is issued from 16% (effective 21.46%). A 4-year loan is >17.2% (effective 21.4%).Secured loans have a term of up to 10 years and an average nominal rate of 15-16%. The rate is fixed for 2/3 years. Then it is tied to the refinancing or TIBR rate. For example: as of June 30 -  8.36 + 8.5 = 16.9%.

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A downward trend has been observed since the beginning of the year (01.01.2025 +18%Y.Y).Business lending has also slowed down. According to the statistics of the National Bank of Georgia, as of 01.06.2025, the annual growth rate is 13.2% (01.01.2025 + 17.8%Y.Y. 01.06.2024 + 20.08%). Volume - 37.1 billion (01.06.2024 – 32.9 billion).Banks' investments in large businesses are 11.9 billion GEL (01.01.2025- 12.2 billion; 01.06.2024 –10.67 billion) in medium and small (SME) - 25.2 billion (01.01.2025 – 24.27 billion, 01.06.2024 – 22.25 billion).In May, 1,878 loans worth 1.6 billion GEL were issued to large businesses. 31,747 loans worth 1.3 billion GEL were issued to SMEs.The dollarization of the flow issued to large businesses is 52%, SME – 49.2%.

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Lending to resident legal entities is 29.1 billion GEL. 63.5% - up to 18.5 billion are foreign currency loans, the GEL portfolio is 10.6 billion. The annual growth rate of business loans has decreased to 13.2% (L/m +14.1% Y.Y).In contrast, retail lending has increased, up to +15.1%, as of 01.06.2025. (L/m- 14.4% Y.Y). The annual growth of consumer loans is still above 20% at +24.3Y.Y (L/m +24.7%Y.Y).Analysts point to a slowdown in business activity, a decrease in demand and an increase in the cost of loans. Credit resources for the banking sector have become more expensive.Loan rates have also been affected by several rounds of increases in the limit for foreign currency lending (increasing to 750,000 from August 1). Hedging costs have increased. Practice has shown that the regulation of foreign currency lending is also transferred to lari loans.According to the statistics of the National Bank of Georgia, the market rate for consumer loans has increased to 16.7% (L/Y – 16.6%). The minimum rate on foreign currency has increased to 7.7% (L/y – 7.4%).Mortgages have become more expensive, the annual rate is set at 12% (L/Y – 11.78%). In foreign currency, 7.5% remains.

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According to the updated statistics of the National Bank of Georgia, the deposit ratio is 61.7% (01.01.2025 - 63.5%), loans - 67.6% (01.01.2025 - 67.8%).As of Q1/2025, banks' assets to GDP are 104.5%, amounting to 98.225 billion GEL (01.01.2025 -95.7 billion, 01.06.2025 - 98.228 billion).For the reporting period, deposits (current accounts, term and demand deposits) amounted to 58.47 billion GEL (01.01.2025 – GEL 58.26 billion, 01.06.2025 – GEL 58.9 billion). Of this, the share of government deposits is constantly in the range of 6-7%. As of June 1, it is 4.3 billion GEL - 7.3%.When determining the coefficient, the NBG is guided by the GDP data for the last 4 quarters.

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As a result, the number of ordinary shares with voting rights held by it was determined at 1,682,584.The trading took place in Cape Town, South Africa, on June 27.It should be recalled that Allan Gray also reduced its stake in TBC PLC on November 2, 2023, from 4.9897% to 3.9978%.

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