NBG raises the refinancing rate preventively

As of project director Eric Bates, the main parameters of the work are as follows: Extraction: A total of almost 6 million cubic meters of soil is planned to be removed, which is a large-scale task for the company. Breakwater construction: Preparations are underway to install a 1,380-meter-long breakwater. The construction should be completed by the end of next year. Operational efficiency: The completed infrastructure will ensure 95% of the port’s annual openness, which will allow the port to receive and service large ships. According to Eric Bates, the Anaklia project will be a significant stimulus for the Georgian economy. The entire maritime infrastructure project should be completed by the end of next year.Belgian Jan De Nul N.V. is a member of the European so-called “Big Four” company, which is carrying out the design and construction of the harbor deepening and breakwater in Anaklia.

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The escalation of geopolitical situation in the Middle East and the prolonged substantial disruptions to shipping through the Strait of Hormuz have created another supply-side driven inflationary shock to the global economy. The sharp increase in the prices of raw energy resources on international markets has already been reflected in rising global inflation. At the same time, the geopolitical situation is disrupting international transportation and heightening the risks of supply chain disruptions. This, in turn, increases production costs, which could become an additional source of inflation. The direct effect of the aforementioned increase in oil prices has already been reflected in fuel prices in the Georgian market. As a result of the combined direct and indirect effects of these supply shocks, headline inflation deviated from the 3 percent target in April, reaching 5.9 percent. At the same time, relatively sticky prices measures, which better capture long-term inflationary processes and inflation expectations, have recently accelerated, making the risks of a second-round effects more pronounced. However, despite the acceleration, they still remain close to the target. In particular, core inflation (excluding food, energy and tobacco) stood at 3.2 percent in April, while services inflation was 3.7 percent.Despite severe geopolitical shocks, the Georgian economy remains resilient and economic growth stays high. According to preliminary data, economic activity grew by 10.7 percent in March 2026 and by 9.1 percent in the first quarter. At the same time, high-productive sectors remain a key driver of economic growth, which partially offsets demand-side inflationary pressures.The NBG's updated central scenario assumes that the ongoing war in the Middle East will end in the second quarter. However, this assumption is conditional and subject to high uncertainty. Even if the geopolitical situation indeed de-escalate during this period, the pace of recovery in global supply capacity is subject to additional uncertainty. Consequently, high inflationary risks are more pronounced. However, there is also a possibility that the geopolitical situation will de-escalate more quickly than in the central scenario. Therefore, the Monetary Policy Committee (MPC), in addition to the central scenario, considered both high and low-inflation risk scenarios.In the event of the realization of the high-inflation risk scenario, fundamental processes require a higher trajectory of the monetary policy rate than the central scenario. The high-inflation scenario assumes a more prolonged and intensified geopolitical situation. Against this backdrop, commodity prices in the international market will increase further and the disruption of supply chains will become widespread. As a result, the supply-side inflationary shock would exacerbate in Georgia, amplifying second-round effects, and ultimately inflation would be higher than in the central scenario.On the other hand, under the low-inflation risk scenario considered by the MPC, the realization of the risks would allow a faster normalization of monetary policy stance compared to the central scenario. A rapid de-escalation of the severe geopolitical tension in the Middle East would ease price pressures in international commodity markets. At the same time, the risks of disruptions to global supply chains would decline significantly, which would be reflected in lower international transportation costs and, ultimately, a moderation of global inflationary pressures.As a result of the ongoing macroeconomic analysis and consideration of existing risks, the MPC considered it optimal to increase the monetary policy rate by 0.25 pp to 8.25 percent. This decision is aimed at keeping inflation expectations firmly anchored at the target. The moderate tightening of monetary policy, in turn, reduces the risks of second-round effects and aims to ensure that, once the supply-side shock dissipates, inflation converges swiftly to the 3 percent target. The NBG continues to closely monitor ongoing developments and the intensity of their transmission to the domestic market. If inflationary shocks stemming from geopolitical tensions become even more prolonged and/or their magnitude would amplify the risks of second-round effects, the MPC will continue to moderately increase the monetary policy rate. Thereafter, once the inflationary shock dissipates, the NBG will begin a gradual normalization of the policy stance.The next meeting of the Monetary Policy Committee will be held on June 17, 2026.

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Revenue of the business increased by 25.8% y-o-y to GEL 6.7 million in 1Q26. The growth was driven by a 32.3% y-o-y increase in the number of cars serviced during the quarter. Operating expenses were up by 6.2% y-o-y in 1Q26, primarily reflecting higher salary expenses associated with the business expansion. Consequently, the 1Q26 EBITDA increased by 38.9% y-o-y to GEL 3.5 million.Periodic technical inspection (PTI) business | Revenue of the business increased by 32.3% y-o-y to GEL 7.6 million in 4Q25 and by 19.0% y-o-y to GEL 27.8 million in FY25. The growth was driven by a 38.6% and 22.1% yo-y increase in the number of cars serviced during 4Q25 and FY25, respectively. Operating expenses were up by 31.4% y-o-y in 4Q25 (up 17.3% y-o-y in FY25), primarily reflecting higher salary expenses associated with the business expansion. Consequently, the 4Q25 EBITDA increased by 37.0% y-o-y to GEL 3.8 million (up 23.8% y-oy to GEL 15.2 million in FY25).

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In 4Q25, the business became the exclusive and official representative of Scania, a leading global premium manufacturer of commercial vehicles, in Georgia.Car services and parts business | In 1Q25, revenue was up by 6.0% y-o-y to GEL 13.0 million, reflecting an increase in the wholesale, corporate and retail segments. Similarly, the gross profit was up by 12.9% to GEL 3.7 million in 1Q25. Operating expenses increased by 2.0% y-o-y, reflecting the business growth. As a result, the business posted a GEL 0.5 million EBITDA in 1Q25, up 3.1x y-o-y.

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According to Fitch Ratings, the acquisition of Liberty by Basisbank more than doubles the bank's size, establishing it as the third-largest bank in the sector. The "Positive" Outlook reflects Fitch's expectation that this transaction will significantly increase the consolidated group's business scale, enhance competition, and drive diversification within the Georgian financial market.Regarding the revision of the rating Outlook, David Tsaava, General Director of Basisbank and Liberty, stated: "The upgrade of the rating Outlook for Basisbank and Liberty to 'Positive' by Fitch is a significant recognition of the strategic step we took by acquiring Liberty. This decision confirms that our unity creates a powerful, diversified, and highly competitive financial institution".(R)

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Current status of the project and main technical characteristics: Marine works: The seabed in the port’s water area will be deepened to 17.5 meters. Breakwater: A 1,380-meter-long breakwater will be constructed, ensuring 95% annual port operability. Mobilization: A concrete plant has already been installed on site and the production of special protective structures - “X-blocks” is underway. Infrastructure development is part of a multimodal transport system. In the near future, the following are planned: Construction of a highway connecting the port. Construction of an 18-kilometer railway line, which will be integrated into the 10-year modernization plan of the Georgian Railways. A press release issued by the Ministry of Economy states that the strategic goal of the project is to increase the throughput capacity of the “Middle Corridor” and establish Georgia as a regional logistics hub. A company that is a member of the European so-called “Big Four” is involved in the construction process, which is a guarantee of compliance with international standards.According to the Ministry of Economy, the emphasis within the project is on employment of the local population.Heads of the Ministries of Economy and Defense, as well as directors of the Georgian Railways and Anaklia Sea Port, got acquainted with the progress of the construction on site.

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The 2nd largest pawnshop - Leader Credit added 8 employees in the first quarter.GBC is specifying the profile at the request of MSME financing MFOs (SCAPP, Lazika), due to the difference in business model. The majority of the market (29 MFOs) are pawn-shop, with a total portfolio of 842,770 loans worth 2 billion GEL (MFOs rating by lending).The sector ended 2025 with a portfolio of 1.9 billion (819,000 loans).As of Q1/2026, the sector's assets are 2.3 billion GEL (2025 - ₾2.2 billion), interest income is 135 million GEL and net profit for the quarter is 51.3 million GEL.

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The company’s General Director, Lasha Abashidze, presented the annual report at an event held at the Paragraph Hotel. According to him, the total savings as a result of strategic changes exceeded 230 million GEL.Financial sustainability and growth in marginsAccording to the report, the operating profit margin of Georgian Railway has improved significantly and reached 36% (in the first half of 2025 this indicator was 25%). The dynamics of revenue growth is also stable: in the first four months of 2026, a 15% increase was recorded compared to the same period in 2025.“We reduced operating and administrative expenses, optimized personnel and reviewed contracts. We had a fairly productive year for the company,” noted Lasha Abashidze.Strategic optimization and digital transformationThe increase in the company’s efficiency was driven by several key factors: Lease optimization: the lease on 400 units of wagons was canceled. Infrastructure savings: The amount saved on tunnel works amounted to approximately 13 million GEL. Direct communication: A direct connection was established with container cargo owners. Special attention was paid to regional cooperation. As a result of negotiations with China, Kazakhstan and Azerbaijan, the digitalization of services reduced the time of border procedures by 7.5 times - from 15 hours to 2 hours.

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