The share of mortgage loans has decreased in banks' portfolios

The loan agreement was officially signed by Georgia’s Minister of Finance, Lasha Khutsishvili, and Lesley Bearman Lahm, Country Director at the Georgia Resident Mission of the Asian Development Bank (ADB).The project is designed to install a climate-resilient energy storage system (BESS) at the Ksani substation. It also involves studying the potential for green hydrogen development, offering practical training in BESS operations, and sharing technical expertise with the Georgian State Electrosystem (GSE).Executing this project will ensure the Georgian power system’s sustainability, flexibility, and security. Simultaneously, it will improve the quality of electricity and contribute significantly to increasing the security of the electricity supply, thereby strengthening Georgia’s energy independence overall.

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The Company confirms that the dividend will be put to shareholder approval at the AGM on 16 June 2025. If the final dividend of GEL 5.62 per ordinary share is approved by shareholders at the AGM, the following dividend timetable will apply:Ex-Dividend Date: 3 July 2025Record Date: 4 July 2025Currency Conversion Date: 4 July 2025Payment Date: 18 July 2025The National Bank of Georgia Georgian Lari/Pounds Sterling average exchange rate for the period 30 June to 4 July 2025 will be used as the exchange rate on the Currency Conversion Date.As a reminder, the group paid an interim dividend of GEL 3.38 per share on October 11 of last year.

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The high growth rate of foreign currency loans was maintained in March. In March, they increased by 2.1%. Lari loans by 1.4%.By the end of March 2025, the larization ratio of total loans amounted to 56.89%.TOP-8 Banks By Credit Portfolio

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Lion Finance Group (BGEO LN) shares closed at GBP 60.65/share (+5.48% w/w and +9.58% m/m). More than 318k shares traded in the range of GBP 57.30 - 62.50/share. Average daily traded volume was 58k in the last 4 weeks. The volume of BGEO shares traded was at 0.72% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 47.00/share (+3.30% w/w and +11.11% m/m). More than 511k shares changed hands in the range of GBP 45.65 - 48.55/share. Average daily traded volume was 105k in the last 4 weeks. The volume of TBCG shares traded was at 0.91% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 16.80/share (+5.66% w/w and +7.14% m/m). More than 621k shares traded in the range of GBP 15.98 - 16.88/share. Average daily traded volume was 106k in the last 4 weeks. The volume of CGEO shares traded was at 1.57% of its capitalization. 

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With regard to the annual core inflation, the prices increased by 2.3 percent, while the annual core inflation without tobacco also amounted to 2.3 percent.The monthly inflation rate was mainly influenced by price changes for the following groups:Food and non-alcoholic beverages: the prices for the group increased by 0.4 percent, contributing 0.18 percentage points to the overall monthly inflation rate. The prices increased for the following subgroups: fruit and grapes (5.2 percent), bread and cereals (2.2 percent), coffee, tea and cocoa (1.9 percent), fish (1.5 percent), oils and fats (1.5 percent), meat (0.2 percent), sugar, jam, honey, chocolate and confectionery (0.2 percent). At the same time, prices decreased for vegetables (-2.1 percent), milk, cheese and eggs (-1.5 percent), mineral waters, soft drinks, fruit and vegetable juices (-1.2 percent);Clothing and footwear: the prices increased by 1.5 percent, contributing 0.07 percentage points to the overall monthly inflation rate. Prices were higher for clothing (2.3 percent);Health: the prices increased by 0.4 percent, contributing 0.04 percentage points to the overall index. The prices were higher for the following subgroups: out-patient services (0.7 percent), medical products, appliances and equipment (0.5 percent), hospital services (0.3 percent);Transport: the prices for the group decreased by 1.0 percent, contributing -0.11 percentage points to the overall index. Within the group the prices decreased for operation of personal transport equipment (-1.9 percent), purchase of vehicles (-0.2 percent). At the same time, prices increased for transport services (1.3 percent).

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According to the document, the media landscape is diverse and, at the same time, highly politically polarised. Manipulation, hate speech and disinformation are widespread in the media, especially on television, the main source of information. Media owners often control editorial content, as was the case with Rustavi 2, a TV channel that changed its editorial line after its handover to a former owner, and the public broadcaster GPB, which experienced government interference. Regional and community radio stations struggle with funding problems, while the print media’s readership is in decline and that of online news outlets is on the rise.The country is undergoing a new and serious political crisis following widely contested legislative elections in October 2024, which have plunged the country into a repressive environment and international isolation. This environment is conducive to sustained competition for control of television networks. Although Georgian law prohibits political parties from owning media outlets, the big networks generally defend the interests of their owners, who often have close ties to political leaders. The same goes for state-owned media, which are subject to strong interference by the authorities. At the same time, the authorities often refuse to respond to media that criticise them and sometimes resort to censorship, raids, smear campaigns and intimidation.The government still hasn’t fulfilled the European Union’s recommendation on press freedom, a necessary step before starting negotiations on membership. Contrary to previous reforms strengthening pluralism and transparency in the media, the government even adopted a repressive “foreign influence” law that copies the Russian “foreign agents” legislation, which undermines media freedom. The courts sometimes try to attack the confidentiality of sources, even though it is guaranteed by the law on freedom of expression.The underdeveloped advertising market is declining in print and online media, which are largely financed by donors, usually from the West. The worrying economic problems of privately owned media have been accentuated by the “foreign influence” law, which penalises media outlets supported by Western institutions, as well as changes in advertising legislation, distorting competition with the heavily subsidised state-owned media.Georgian society is marked by strong social tensions on certain issues, such as religion, LGBTQ+, rights and Russian influence, impacting journalistic coverage. Influential social figures, such as members of the Orthodox clergy, are wiretapped by the security services, thereby violating the confidentiality of journalists’ sources.Verbal and physical assaults on journalists are frequent, including by senior government officials, especially during electoral campaigns. A sustained and brutal assault on about 50 reporters during homophobic counter-demonstrations in July 2021, in front of impassive security forces, marked an unprecedented setback. The lack of transparency and progress in the investigation speaks to the impunity enjoyed by those who commit crimes against journalists.

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The conference brought together representatives from central banks and financial institutions to discuss key issues related to financial and supervisory frameworks critical for the region’s economic development. Participants highlighted the strategic role of Azerbaijan, Georgia, and Turkey as a vital economic corridor connecting Europe and Asia, emphasizing that their collaboration with the United States is essential for fostering sustainable economic growth and financial stability.During a panel discussion, Mikabadze underscored the growing importance of strengthening financial ties among countries in the region, particularly in the context of global financial market development. She noted that as economic activity intensifies along the Middle Corridor, the demand for interconnected financial services is increasing.“The National Bank of Georgia is actively cooperating with the central banks of Turkey and Azerbaijan across multiple areas,” Mikabadze stated. “This includes the implementation of modern real-time gross settlement (RTGS) systems, instant payment systems (IPS), fintech initiatives, and efforts to improve the efficiency of cross-border payments. These advancements are integral to fostering an integrated, innovative financial ecosystem.”Mikabadze also addressed the risks currently confronting central banks and monetary policy amid heightened global uncertainty. Ekaterine Mikabadze noted that, based on the National Bank of Georgia's risk-based monetary policy approach, the NBG has successfully managed to maintain low inflation.

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Note that 75.5% of the all permits have been issued in four regions of the country, namely: 47.4% in Tbilisi, 12.9% in Kvemo Kartli region, 8% in Mtskheta-Mtianeti region and 7.2% in Kakheti region.It should be noted that in January-March of 2025, permissions were issued for the construction of multifunctional residential complexes, trade facilities, hotels, industrial enterprises, objects for agricultural purposes, and other buildings.698 objects (17.0 percent less compared to the previous year) with total area of 659.6 thousand square meters (18.1 percent less compared to the previous year) were completed in January-March of 2025.More than two-thirds of the completed constructions are distributed among four regions of the country, namely: 32.5 percent is located in Tbilisi, 14% in Mtskheta-Mtianeti region, 11.3% in Kakheti region, and 9.3% in Shida Kartli region.

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