US-China Trade De-escalation Boosts Georgian Pension Fund Returns

The bank's customer service center (hotline) reported that the rate on pension loans is issued at an annual rate of 24-25%.It is also difficult to indicate the effective rate for consumer loans. The operator notes that it is possible only after filling out the application, during the session processing.The nominal rate is determined from 9.9% for Liberty's salary clients and from 15.9% for clients of other banks.Consumer loans, including pension loans, are issued for a term of up to 4 years. The borrower's age at the end of the loan should not exceed 84 (overdraft up to 76 years).As of Q1/2025, the volume of loans secured by pension (and other social payments) (total value, not principal amount) is 439.7 million GEL (2024 – GEL 431.3 million GEL).In the first quarter of 2025, the volume increased, while the number of loans decreased. Total, 286,877 units of credit have been issued (01.01.2025 - 294,991).Annually, the volume has increased by 4.7%, the number has decreased Q1/2024 – 420 million; 341,388 units of loans).

1749820875

Including a certificate of deposit, an analogue of which, with the same parameters, Crystal has issued before its transformation into a bank (2023). The most secure, promissory note-type security is "Moneta", which will become even more flexible after being renamed a certificate of deposit.The microbank believes that along with small and medium-sized business loans, "Crystal" has a competitive advantage in the market with this deposit product.At this stage, the security with a maturity of up to 2 years is priced at 13.5% in GEL. The yield of the certificate denominated in USD and EUR is 2-2.5% higher than the market rate, respectively, the annual rate in USD is 6.25%, in EUR - 4.75%.Filling out consumer and auto loan applications in "Crystal" is already convenient remotely. The management has developed 95 projects for the formation of a bank, including the development of digital channels.The management believes that it is well positioned in the segment of lending to small and medium-sized enterprises, because it is a niche for "Crystal". It is closer to business and, accordingly, better knows their needs.At the moment, Microbank Crystal issues mortgage loans from 18% (effective from 22%), consumer loans from 20% (effective from 23.5%), car loans from 16% (effective from 28%) and also car pawnshops from 16% (effective from 30%). As of May 1, "Crystal" is represented in the banking market with a credit portfolio of 564 million GEL, with a market share of 0.9%. It has the largest portfolio among microbanks (2nd MBC holds 0.2%). It is also large in several banks operating in the former MFO market (Pasha Bank, Ziraat Bank, Silk Bank).

1749820343

During the forum, Zourabichvili held discussions with Czech President Petr Pavel and French Minister for Europe Benjamin Haddad, focusing on the ongoing developments in Georgia.The press service reported that, in the course of these conversations, Salome Zourabichvili spoke about: “the current situation in Georgia, including the widespread repressions carried out by the Georgian Dream government, the imprisonment of political figures, heavy fines, and the large-scale fines imposed on those who oppose or criticize the government’s foreign policy and domestic policies”.

1749817068

Earlier, Nika Gvaramia wrote on social media: "Not a single step back! Our homeland is behind us! The oligarchy must fall! Glory to Georgia!".During the trial, the prosecutor's office requested that the preventive measure imposed on Nika Gvaramia, the 30,000-GEL bail, be replaced with imprisonment. The judge granted the prosecutor's request and replaced Gvaramia's bail imposed as a preventive measure with imprisonment.The accused politician did not pay the bail imposed on him within the period established by law.Nika Gvaramia was summoned to give an explanation before the Temporary Investigative Commission of the Parliament of Georgia, where he did not appear. In this regard, he has been charged under Article 349 of the Criminal Code, which refers to "failure to comply with the request of the Temporary Investigative Commission of the Parliament of Georgia", which is punishable by a fine, or imprisonment for a term of up to one year, or deprivation of the right to hold a position or engage in activity for a term of up to three years.Nika Gvaramia was granted bail of 30,000 GEL as a preventive measure, which was set at 50 days. The aforementioned period expired on June 7.Several other politicians have been arrested on charges of failing to appear at the Tsulukiani Commission. Among them: former Defense Minister Irakli Okruashvili, Nika Melia, co-founder of the Akhali party and leader of the Girchi More Freedom party Zura Japaridze.Criminal cases have also been opened against other politicians for failing to appear at the Tsulukiani Commission, who chose to pay bail rather than imprisonment. These are: Mamuka Khazaradze and Badri Japaridze - 50,000 GEL each, Givi Targamadze - 10,000 GEL, and Giorgi Vashadze - 50,000 GEL.

1749812813

The value of export increased by 14.6 percent reaching USD 2 595.3 million, while the import increased by 12.8 percent and amounted to USD 7,19 billion.The trade deficit equaled USD 4,6 bln and its share in trade turnover constituted 47%.

1749812623

In 2024, the number of events held in the country amounted to 4.8 thousand, of which the number of offsite events amounted to 177. The number of events held abroad amounted to 136.The number of performances in 2024 decreased by 3.5 percent compared to the previous year and amounted to 4 518. Approximately two-thirds (69.4 percent) of the performances were held in Tbilisi.In 2024, the total number of attendants decreased by 17.6 percent compared to the previous year and amounted to 636.1 thousand. Two-thirds of attendants (66.2 percent) come to Tbilisi, with Imereti in second place (10.3 percent).In 2024, 261 museums and museum reserves were operated in Georgia, of which 104 were memorial, 74 - history (regional studies), 23 - arts, 13 - museum-reserve, 2 – literature studies, and 45 – other types of museums.In 2024, most museums were operated in Tbilisi (22.6%), followed by Imereti (15.3%) and Kakheti (14.2%).In 2024, the number of visitors in museums decreased by 7.8 percent compared to the previous year and amounted to 1.9 million. Average number of visitors per museum equaled to 7.3 thousand persons.In 2024, the number of excursions in museums decreased by 3.0 percent and amounted to 45.0 thousand, the number of exhibitions increased by 2.5 percent and amounted to 939.

1749812487

In her address to Parliament, Turnava outlined the NBG’s strategic priorities during the reporting period, emphasizing the Bank’s core mandate: maintaining price stability as a foundation for long-term economic growth. Georgia has followed an inflation-targeting regime since 2018, with a target rate of 3%.“In 2024, inflation remained low and stable, averaging 1.1%, while core inflation—excluding food, energy, and tobacco—stood at 1.6%,” said Turnava. “This low inflation environment was largely driven by domestic factors and effective monetary policy. The stable effective exchange rate of the lari also contributed significantly.”Turnava noted that the NBG reduced the refinancing rate by 1.5 percentage points to 8% in the first half of 2024. However, due to rising global risks in the second half, the Bank adopted a cautious stance, keeping the policy rate unchanged.“This policy supported a resurgence in credit activity, boosting aggregate demand. With rising domestic demand and improved productive capacity, Georgia experienced real GDP growth of 9.4% in 2024,” she said, adding that external demand also contributed positively.International Reserves & FX Market Management The President of the National Bank emphasized the importance of international reserves in maintaining macroeconomic stability. As of December 2024, Georgia’s reserves stood at $4.4 billion.She explained that while favorable conditions in early 2024 allowed the NBG to replenish reserves via FX interventions, the second half of the year saw market volatility and speculative pressures, prompting the NBG to intervene by supplying USD liquidity to stabilize expectations.“Despite short-term pressure, we resumed reserve accumulation by year-end. Total net FX sales in 2024 amounted to $434.75 million. As of May 2025, official reserve assets reached $4.6 billion, fully offsetting last year’s net sales,” Turnava stated.Turnava also addressed the ongoing challenge of financial dollarization, noting progress made due to structural reforms implemented by the NBG.“Loan dollarization decreased to 43.3% from 55.4% in 2019, and deposit dollarization fell to 52.2%, down from 64%. However, dollarization remains a key risk,” she noted. “To address this, we continued implementing our long-term de-dollarization plan, including further reductions in limits on unhedged FX loans, which will be capped at GEL 500,000.”

1749723763

As of 01.05.2025, non-performing mortgages in the GEL portfolio amounted to 112 million GEL (L/m -109.4 million). In EUR, it exceeds the equivalent of 37 million GEL (L/m - 35.7 million).At the same time, the problem ratio is still at a low 1.4% in GEL. In USD, it exceeds 2% (1.9%). In EUR, it exceeds - 2.3%.Of the 195 million GEL of overdue mortgages, the USD portfolio accounts for the equivalent of 46.2 million GEL, which is 1.5% less than the previous month and 2.7% less than the previous year (L/m – 45.9 million), 01.05.2024 – 47.5 million).According to the interactive statistics of the Bank of Georgia, as of May (01.05.2025), there are 12.3 billion GEL of mortgage loans in the banks' portfolio. Of which 66.66% are denominated in GEL (L/Y – 62.1%)

1749723582