Problem loans remain in MBC’s portfolio

The declaration warns that, should Georgia fail to make progress in reversing its authoritarian trajectory, the members will consider challenging the credentials of the Georgian delegation.“On 29 January 2025, the Parliamentary Assembly adopted Resolution 2585 (2025) ratifying the credentials of the Georgian delegation on the condition that Georgia meets democratic benchmarks by April 2025, including the release of political prisoners and the announcement of new parliamentary elections under improved electoral conditions.Instead, the situation has worsened dramatically. Senior opposition leaders have been imprisoned. Civil society activists and journalists face politically motivated criminal prosecution. This is no longer a series of isolated incidents but a sustained campaign to eliminate democratic opposition, restrict freedom of expression and silence civil society. Furthermore, the Georgian delegation has unilaterally withdrawn from the Assembly.This path of repression and disengagement violates Georgia’s obligations as a Council of Europe member and defies the Assembly’s authority. The Assembly must uphold its rules and resolutions. Ignoring authoritarian backsliding within a member State undermines the very foundation of this institution.If Georgia makes no progress in reversing its authoritarian course, we will challenge the credentials of the Georgian delegation on substantive grounds and call for the Assembly and the Committee of Ministers to begin the expulsion process of Georgia for serious violations of the basic principles of the Council of Europe mentioned in Article 3 of its Statute,” the declaration reads.

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The United States President believes that the Ukraine-Russia conflict could have evolved into World War III.“Crimea was the heart and soul of that country. It’s beautiful. And Obama said, You give it up to Russia. When Barack Hussein Obama gave away, he told them, You just give it up. It’s not going to be any fighting. And so they gave it up. And that was really the beginning of a disastrous, long period for that country. That was the beginning. And nobody talks about that. If I gave up that land, I’d be on the front page of every paper for the next 20 years. When Obama gave it up, they didn’t even talk about it. Can you imagine?” President Trump stated.“I didn’t give him Crimea. Crimea is massive. I would say like the size of Texas or something in the middle of the ocean. It’s gorgeous. And they gave it up because of Obama. And the press doesn’t even talk about it. Well, they don’t talk about part of Georgia that was taken under the Republican president,” Donald Trump stated.The U.S. President went on to say, “They took the whole thing under Biden. They took Crimea under Obama, and they took a big chunk of Georgia under Bush. Right. But with me, what was taken? Nothing was taken. Nothing. I came in, and this thing was raging. I think it was heading to World War III.”

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The program aligns with the Group’s capital allocation policy, which aims to maintain a dividend/share buyback payout ratio of 30–50% of annual profit.The buyback will begin in the near future and is expected to be completed no later than the company’s 2026 Annual General Meeting, likely to be held in May 2026. The shares will be repurchased on the open market with the objective of reducing the company’s share capital.Repurchased shares will be cancelled on a monthly basis.The maximum number of shares to be repurchased under the program is 4,338,620. The Group has appointed Cavendish Capital Markets Limited to manage the program.During closed periods, neither the company nor its directors will have authority to amend the program, which will be carried out entirely at Cavendish’s discretion.

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The dividend will be paid in British pounds sterling per ordinary share. Payment is scheduled for October 10, 2025, to shareholders on record as of September 26, 2025.The GEL/GBP exchange rate used for the payout will be based on the average official exchange rate set by the National Bank of Georgia over the five-day period from September 22 to September 26, 2025, with the official conversion rate to be determined on September 26.As a reminder, LFG last distributed a final dividend for 2024 on July 18, amounting to GEL 5.62 per ordinary share.

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In Q2 2025, 95.1% of the passenger flow at Georgian airports was on regular flights.During the same period, the number of passenger flights carried out from Georgian airports reached 8.6 thousand, which is 12.8% more compared to Q2 2024.The volume of cargo and mail handled at Georgian airports in Q2 2025 amounted to 9 thousand tons, of which 92.2% was incoming cargo and mail, while 7.8% was outgoing.According to Geostat, 0.9 thousand cargo flights were carried out at Georgian airports in Q2 2025, which is 86.9% more than the same period last year.In the same quarter, 172.6 thousand passengers were and 38.2 thousand tons of cargo were transported by air. The number of passengers transported increased by 1.5% compared to the same period last year, while the volume of transported cargo decreased by 18.6%.

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This is the microbank’s first collaboration with the CEB. In addition to the loan, the agreement includes a technical assistance component from the CEB, which, according to Crystal’s CEO Ilia Revia, is equally important for strengthening Crystal’s institutional capacity.The creditor is also pleased with the deal. “Together with the microbank, we will create new opportunities for growth and employment,” said Cristian Tabacaru, CEB’s Director of Credit and Social Development.“We are pleased that the microbank Crystal, side by side with us, will help empower micro-entrepreneurs in Georgia and create new opportunities for growth and employment”, - Crystal’s CEO Ilia Revia

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According to the National Bank of Georgia’s instruction, after the acquisition of shares, Liberty will continue operating under its current organizational-legal form as a subsidiary of Basisbank. The full merger process is expected to take 9–12 months.According to the semi-annual report, Basisbank has issued loans totaling 880 million GEL to 45,170 individuals (compared to 817 million GEL in H1/2024). Liberty, on the other hand, has issued 2.3 billion GEL worth of loans to 510,010 individuals, with more than half (281,320 clients) being pensioners with loans under 0.5 billion GEL.The credit portfolios of the two banks also differ in concentration. 71% (2.2 billion GEL) of Basisbank’s total credit placement (3.053 billion GEL) is in loans to legal entities. Liberty’s portfolio (4.03 billion GEL) consists of up to 60% (2.3 billion GEL) in retail loans.Before the expected merger, Basisbank and Liberty had separately expanded — three years ago, they divided the sanctioned VTB Bank Georgia’s assets (loans and deposits). Liberty grew its corporate portfolio, while Basisbank expanded in retail.

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Lion Finance Group (BGEO LN) shares closed at GBP 77.30/share (- 1.90% w/w and +8.57% m/m). More than 240k shares traded in the range of GBP 76.90 - 81.00/share. Average daily traded volume was 48k in the last 4 weeks. The volume of BGEO shares traded was at 0.54% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 45.70/share (-4.99% w/w and -6.06% m/m). More than 443k shares changed hands in the range of GBP 44.95 - 48.60/share. Average daily traded volume was 75k in the last 4 weeks. The volume of TBCG shares traded was at 0.79% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 23.65/share (+2.38% w/w and +14.25% m/m). More than 615k shares traded in the range of GBP 23.15 - 25.00/share. Average daily traded volume was 83k in the last 4 weeks. The volume of CGEO shares traded was at 1.56% of its capitalization.

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