Silk Bank is counting losses

According to the Agency’s assessment, for the period covering January through September 2025, fluctuations in retail fuel prices both upward and downward, were consistent with global market developments and reflected the actual cost of imported fuel, taking into account existing company reserves and the exchange rate of the Georgian Lari.In January 2025, an increase in retail fuel prices was observed for both petrol and diesel. For major market participants, the price increase ranged between 3-10 tetri, while for smaller retail networks, the increase ranged between 10-20 tetri.From the second half of March 2025, retail fuel prices began to decline. Overall, for large companies, the retail price of regular-type petrol decreased by 26-28 tetri, premium-type petrol by 17-26 tetri, and diesel by 18-29 tetri. In smaller networks, price adjustments both increases and decreases were implemented more promptly compared to larger companies .Since June 2025, retail prices among large companies have increased by an average of 15-20 tetri. In smaller retail networks, a comparatively higher increase up to 25 tetri was recorded, particularly in diesel prices.The reduction in retail fuel prices during the first half of 2025 was primarily driven by the decline in crude oil prices and, consequently, lower Platts quotations. Notably, in early May 2025, the price of crude oil dropped to USD 56 per barrel, the lowest level recorded since 2021. Following this period, crude oil prices began to rise again, leading to an increase in the cost of imported fuel, which was subsequently reflected in retail prices.The level of fuel reserves maintained by major companies, together with logistical processes, represents one of the key factors contributing to the delayed reflection of international market trends in domestic retail prices-both in cases of price increases and decreases. Conversely, smaller networks tend to respond more flexibly to such fluctuations due to the relatively lower volume of reserves, resulting in faster price adjustments.In 2025, the dynamics of retail auto fuel prices in Georgia have been broadly aligned with trends observed in major European supplier countries, including Romania and Bulgaria, when adjusted for the exchange rate of the Georgian Lari .The Agency continues to systematically monitor the actual volume and cost of fuel imported by companies within the framework of its ongoing market supervision activities.

1760011826

The dynamic portfolio, which has the highest share of international equities compared to other portfolios, increased by 2.56% in September, while the balanced and conservative portfolios recorded increases of 1.98% and 1.47%, respectively.Since the beginning of the year, the profitability of all three portfolios has been quite high: Dynamic – 12% Balanced – 10.3% Conservative – 8.9% According to the Pension Fund, it is noteworthy that since the date of its creation (August 6, 2023), the Dynamic Portfolio has also been leading in terms of annualized income, and its profitability reaches 14.5%, while the corresponding indicators for the Balanced and Conservative portfolios are 13.2% and 11.9%.By the end of September, the assets of the Pension Fund of Georgia exceeded GEL 7.7 billion, and the generated income exceeded GEL 2 billion.

1760011508

“We are increasingly concerned by the deteriorating political situation in Georgia and the troubling actions taken by the Georgian government following recent local elections. Prime Minister Kobakhidze’s decision to outlaw opposition parties and jail their leaders is egregious, undemocratic and yet another indication that Georgian Dream is wholly uninterested in pursuing a path toward normalized political dialogue. Politically-motivated investigations and intimidation of civil society leaders, particularly those who have worked with the United States government and testified before our committee, are an attempt to silence dissent in a country with a proud history of speaking truth to power.“It is also unacceptable that the Georgian government has targeted former U.S. government employees by making baseless allegations that they are undermining Georgia’s government. Let us be clear: it is Georgian Dream, not the United States, that is undermining Georgia’s democracy and their ability to determine their future. We welcome the Department of State’s decision to summon the Georgian Ambassador to address these disturbing developments and we urge the Trump Administration to consider recent actions by the Georgian government before pursuing any change to the bilateral relationship. We extend our unwavering, bipartisan support to the Georgian people who simply wish to claim their right to self-determination,” the statment reads.

1760011012

All lending entities, including MFOs, NBG forced all lenders to weigh the loan burden when designing the product so that it does not become heavier after the grace period expires.MFO Euro Credit is issuing a pawn loan for the purchase of a car before the New Year without an approval fee (which is up to 4% by default) and a collateral fee (GEL160), at an annual rate of 26% to 42% (effective up to 50%).The borrower pawns a car manufactured since 2003, with a technical inspection, which remains in the ownership of the borrower and provides access to 80% of the value.MFO's 86 million GEL portfolio mainly consists of pawned loans. MFO’s assets include property owned up to 80,000 GEL.According to MFO, business loans are also issued at an annual rate of 24-36% (effective up to 50%).In "Euro Credit", loans are issued for a term of up to 6 years, in an amount of up to 200,000 GEL.MFO "Euro Credit" main financial indicators (period: Q2/2025)

1760010697

According to the NBG's monthly review, the interest rate on loans issued to legal entities in the national currency increased by 0.3 percentage points to 13.4% in August. The foreign currency loan rate decreased by 0.8 percentage points to 9.6% in the last reporting month.The interactive statistics of the National Bank of Georgia shows, that  the corporate loan portfolio of banks as of September (01.09.2025) exceeds 31.3 billion GEL, of which 64% - GEL 20 billion. is denominated in foreign currency.In particular, 65.4% - 17.7 billion GEL of the long-term loans (27.1 billion GEL) portfolio is foreign currency.In GEL, the annual growth rate of lending to legal entities has decreased to 16.4% (L/m +17.7%Y.Y, L/y +23%Y.Y).In foreign currency, the pace has accelerated since May, and in August it also increased to + 14.8% Y.Y (L/m + 14.4%Y.) However, in terms of the year, as a result of several rounds of NBG regulations, growth has been subdued year-on-year (L/y + 19% Y.Y.).

1760010322

According to the NBG’s data for August 2025, banks have healthy capital and liquidity ratios.As of the NBG’s data, in August 2025, annual growth in loans, excluding the effect of the exchange rate, amounted to 14.8%, which the regulator largely attributes to the growth in business loans.According to the National Bank’s second-quarter data, the ratio of loans to gross domestic product remains below the long-term trend, and the ratio gap is negative.As of the analysts, the strong economic growth in the first half of 2025 slowed down the pace of closing the loan-to-GDP gap, although the loan-to-GDP ratio continues to gradually approach its long-term level. Accordingly, there is no need to change the cyclical component of the countercyclical capital buffer at the current stage. In addition, commercial banks will continue to gradually accumulate the neutral component of the countercyclical capital buffer.

1759918533

The observation comes from the World Bank’s newly released regional economic review, focusing on jobs and prosperity across emerging markets in Europe and Central Asia.According to the report, nuclear energy may also complement other renewable sources in certain countries, helping to diversify energy production and create more stable employment. The World Bank notes that such a differentiated energy approach can ensure that investments directly translate into productive jobs.The study also emphasizes the need for coal transition strategies in Central and Eastern Europe, underscoring the importance of supporting displaced workers and expanding renewable infrastructure — a shift that could create new employment opportunities across the region.In Central Asia, the report highlights growing energy demand driven by population growth, calling for the harnessing of hydropower and solar resources, while natural gas continues to play a transitional role in countries such as Kazakhstan and Turkmenistan.“The region’s developing countries need to implement bold reforms to translate sustainability into significant growth in productivity, output, and jobs, in line with changing demographics and natural advantages,” said Antonella Bassani, World Bank Vice President for Europe and Central Asia.Bassani added that it is essential for countries to strengthen the private sector, improve education, and enhance international and regional connectivity, while attracting more private investment.“The challenge for the region,” she said, “is to increase job opportunities and transform low-skilled jobs into high-quality employment.”

1759918359

“According to the World Bank, Armenia’s economy is expected to grow by 5.2 percent this year, an upward revision of 1.2 percent. In Azerbaijan, the International Monetary Fund projects economic growth of up to 1.9 percent, while the World Bank has downgraded its forecast for the country by 0.7 percent.It is noteworthy that, in recent weeks, not only the World Bank but also the European Bank for Reconstruction and Development and the Asian Development Bank have raised Georgia’s 2025 economic growth forecast to 7 percent. Meanwhile, the International Monetary Fund projects an even higher figure of 7.2 percent for Georgia,” World Bank’s report reads.According to WB, remittance growth in the South Caucasus remains resilient as well, even as money transfers from Russia are normalizing following the surge in 2022–23.Money transfers rose by 9.2 percent year on-year during January-July in Armenia and 5 percent in Georgia, as a drop in transfers from Russia, down nearly 30 percent in Georgia’s case, was offset by higher remittances from the European Union and the United States.In the South Caucasus, growth is projected to slow to just above 3 percent, reflecting weaker expansion in Azerbaijan amid declining oil production, and a normalization of growth in Armenia and Georgia.

1759918216