EU warns Georgian authorities over “anti-European rhetoric”

Lion Finance Group (BGEO LN) shares closed at GBP 110.40/share (-4.83% w/w and +17.07% m/m). More than 235k shares traded in the range of GBP 110.10 - 116.20/share. Average daily traded volume was 72k 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 48.70/share (-5.98% w/w and +17.63% m/m). More than 139k shares changed hands in the range of GBP 48.60 - 51.20/share. Average daily traded volume was 64k in the last 4 weeks. The volume of TBCG shares traded was at 0.25% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 40.65/share (-0.37% w/w and +14.03% m/m). More than 421k shares traded in the range of GBP 40.10 - 41.90/share. Average daily traded volume was 65k in the last 4 weeks. The volume of CGEO shares traded was at 1.22% of its capitalization. 

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Prior to his appointment to the said position, Mikheil Khidureli was the head of the agency “Enterprise Georgia” for years.His appointment was made on the basis of Article 9 of the Law of Georgia “On Public-Private Partnership”.

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“The issuer does not have a credit rating. The prospectus mentions various assumptions. There is a possibility that the securities will be purchased by one of the large banks, TBC Bank, which is affiliated with the placement agent (a direct subsidiary of JSC “TBC Bank”).In addition, the corporate lending direction (which, along with issuing corporate loans, includes investing in bonds) has a common management.() The placement agent is required by law to treat JSC "TBC Bank" as well as all investors equally;() During book-building (formation of the final interest rate), in case of interest in purchasing more than the amount specified in the prospectus, the application is satisfied proportionally or otherwise, the decision is made by the issuer itself, not the agent.The total issuance program is up to $20,000,000. The currency will be specified in the "Preliminary Offering Terms Document" for each issue. It may be Euro or US Dollar, issued as coupon bonds.Coupon payment is determined with different frequencies: a) monthly; b) quarterly; c) Semi-annual. Maturity: 1) 1 year; 2) 2 years; 3) 3 years; 4) 4 years; 5) 5 years.Issuer - Hotel Complex Lopota has been on the market since 2008. Until 2016, it was a family hotel (Lake Resort). It has been operating under the name of LLC "Lopota" since 03/2017.

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As of April (Q1/2026), banks' credit investments amounted to 75.2 billion GEL. Annual growth +14.9% ( L/m - +14.2%Y.Y). 75% of investments – GEL 56.4 billion are accounted for by 2 large banks (BOG, TBC).Out of 19 entities operating in the market (including 2 micro and 3 digital banks), 96% of total investments or 72.2 billion GEL account for 8 banks, of which the share of 2 systemic banks is 78%.According to the quarterly report of the National Bank of Georgia, lending to resident legal entities is 33.08 billion GEL. Of which 64% - 21.04 billion GEL equivalent issued in foreign currency.As of 01.04.2026, the retail portfolio of banks increased by 16.5% annually, to 37.8 billion GEL (L/Y - 32.5 billion; +15.5%).The larization ratio of total loans is 57.5% (Q1/2025 - 56.9%).

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Statistical dynamics show that since 2021 (GEL 4.62 million), state funding for the sector has increased by 137.2%. Although the subsidy rate for 1 kg of Aleksandrouoli and Mujuretuli has remained stable at 4 GEL for the past four years, the increase in the total budget is related to the expansion of production scales and increased logistics costs.The subsidy has a short-term economic effect, says a GBC winemaker from Rachveli, who was interviewed by the agency on condition of anonymity.“We have been using subsidies since 2020. This is good for the enterprise, because it buys grapes cheaply, instead of 8 GEL, the enterprise pays 4 GEL. In fact, it buys at half price. This does not have a positive effect on the quality of the grapes, provided that the subsidy is issued. The farmer is guaranteed that he will sell the grapes. In practice, it is difficult to buy good quality grapes and buy a lot, because the subsidy issued by the government on the winegrower has an economic effect, they try to bring a lot in quantity and do not pay attention to the quality.In my opinion, there should not be one subsidized price for all types of grapes. The yield per hectare should be controlled so that we do not get low quality. The condition of the grapes should also be controlled so that they are healthy with the appropriate sugar content.The worst thing is that wine cannot be sold and have a surplus. In addition to the subsidy, the state purchased a very large amount of grapes itself in 2025. In other words, there was no demand for these grapes, and the fact that there was no demand is bad. The state should not have to purchase these grapes. But if it were not for the subsidy, in the absence of demand, many farmers would have unsold crops,” a winemaker from Racha said in an interview with GBC, adding that “the main challenge for the Racha-Lechkhumi winemaking sector is not the purchase of grapes, but the sale of wine. One of the winemakers notes that wineries need more help with sales, market research, and positioning than with purchasing grapes.”Although the subsidy per 1 kg of grapes (Aleksandrouli and Mujuretuli) has increased from 3 to 4 GEL and has remained stable for the past four years, industry experts believe that this does not mean an increase in farmers' net profits. The increased subsidy is mainly used to compensate for the increased cost of production.According to analysts, the 2025 “budgetary leap” increases the vulnerability of farmers, as the viticulture of Racha-Lechkhumi is becoming increasingly dependent on state donations, which poses a risk to the sustainability of the sector in the long term.

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According to the official document, Beka Dvali is to take over the leadership of the diplomatic mission in Israel from July 1, 2026.From the same period, within the framework of rotation, Dvali is leaving the post of Georgian Ambassador to the Commonwealth of Australia. By the second decree of the Prime Minister, a proposal has already been submitted to the President on his dismissal from Australia, which is related to “transfer to another position”.The procedure for the appointment and dismissal of an ambassador is carried out in accordance with Article 52 of the Constitution of Georgia and the Law “On the Structure, Powers and Procedures of the Government”. The aforementioned norms envisage the nomination of the candidate by the government and his final appointment by the president.Beka Dvali is an experienced diplomat who has represented Georgia’s interests in Australia, Fiji, Kiribati and other countries in Oceania for years. His transfer to Israel is driven by the dynamic geopolitical situation in the Middle East, where Israel remains one of Georgia’s strategic partners.

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The AAWE report, which is based on data from the US Census Bureau and USA Trade Online, reflects the effective tariff rates imposed on the value of imported wine during the year.The 7% tariff imposed on Georgian wine is lower than the rates of leading European wine-producing countries.Countries: Slovenia – 10% Austria – 9.5% Portuguese – 9.4% New Zealand – 9.4% Spain – 9.3% Germany – 9.3% Italy – 8.8% France - 7.4% In addition, compared to other countries in the region, wine imported from Georgia is taxed at a slightly higher tariff than Armenian (6.7%) or Moldovan (3.7%). The most favorable conditions in the US market are enjoyed by Mexico (0.0%) and Canada (0.3%).According to AAWE, several factors influenced the change in tariffs during 2025, including additional restrictions imposed on European Union countries (IEEPA).

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As the government explains, the aforementioned amendments will increase the efficiency of the law enforcement system by strengthening interdepartmental coordination, while maintaining the institutional independence of law enforcement agencies.According to him, the change will ensure the synchronization of the activities of law enforcement agencies, the acceleration of relevant decision-making, the timely preparation of necessary legislative amendments, and an effective and timely response to dynamic challenges.“At any stage of the country’s development, the smooth, coordinated functioning of law enforcement agencies is of particular importance.Along with the development of society, the methods and means of crime change. Accordingly, the regulatory policy of the law enforcement sphere, approaches and methods of combating crime require constant refinement and transformation.The existing government structure does not provide for a systematic mechanism for the coordination of law enforcement agencies. At the same time, law enforcement functions are distributed among several agencies. In order to increase the effectiveness of this important area of ​​operational coordination of the aforementioned agencies, it is necessary to have a single strategic coordinating agency within the government, since according to the legislation of Georgia, the Government of Georgia takes measures to ensure public security. It is the coordinating agency for planning national security policy.The change ensures the strengthening of cooperation between law enforcement agencies. Joint "Supporting the planning of operations, introducing information exchange standards. On the other hand, assessing the effectiveness of their activities, identifying problem areas. Also, within the framework of the constitutional powers of the government, the State Minister will coordinate with the Prosecutor's Office of Georgia, the State Audit Office and the judiciary.The aforementioned change will ensure the synchronization of the activities of services with law enforcement functions, acceleration of the adoption of relevant decisions, timely preparation of necessary legislative amendments and effective and timely response to dynamic challenges," the explanatory note attached to the draft law states.After the creation of the position of State Minister for Coordination of Law Enforcement Agencies, the post will be held by Mamuka Mdinaradze. Mdinaradze's written statement on his early resignation from the post of State Security Service has already been submitted to the Parliament.

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