EU: Withdrawal of Russian forces from Georgia considered as condition for talks with Moscow

Despite weaker visitor dynamics from Azerbaijan and Armenia, the main downward pressure on tourism revenue came from Russia and Israel, where revenues declined by 12% and 13% YoY, respectively. The impact of the Middle East conflict became visible in Israel-related dynamics, with Israeli visitor trips down 17.5% YoY. These losses were offset by stronger revenue growth from the EU and UK (+36%), Türkiye (+12%), and Ukraine (+34%), supporting a modest increase in total tourism revenue to USD 830 million (+0.5% YoY). Although the EU and UK ranked only fourth by visitor numbers, they were the largest revenue contributors, generating USD 141 million and highlighting significantly higher average spending per visitor compared to neighboring source markets. Large branded hotels also showed improved performance in 1Q 2026. Occupancy averaged 51%, up 6 percentage points YoY, while the Average Daily Rate (ADR) reached USD 129, increasing by 10% YoY. ADR was higher in all three months of the quarter compared to the same period of 2025.

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The NBG's report includes an overview of monetary, foreign exchange, and supervisory policies, as well as audited financial statements.In her report, Natia Turnava reviewed the main directions that guided the NBG in 2025. She began her speech by discussing the core objective of the NBG price stability and noted that the average annual inflation in 2025 amounted to 3.9 percent, while the indicators reflecting long-term inflation expectations, including core and services inflation, remained close to the target level."Despite global challenges and the impact of developments in the Middle East, inflation expectations are manageable, which was facilitated by the monetary policy implemented by the NBG. For this very purpose, in response to the current situation, in May 2026, we increased the monetary policy rate by 0.25 percentage points to 8.25 percent, so that once supply-side shocks dissipate, inflation can quickly return to the target level of 3 percent," stated Natia Turnava.The Governor of the NBG also focused on the positive trends regarding economic growth and macroeconomic stability."Despite severe geopolitical shocks, the Georgian economy maintains its resilience, and economic growth remains high. In 2025, the current account deficit narrowed to a historically low 2.6 percent of GDP, while foreign direct investment increased by 7.6 percent year-on-year to 4.4 percent of GDP. Strong macroeconomic fundamentals enabled us to significantly replenish international reserves. By the end of 2025, international reserves reached USD 6.16 billion, and in February 2026, they hit a historic maximum of USD 6.65 billion," noted Natia Turnava.Within the framework of the report, the Governor of the NBG also spoke about the measures taken to reduce financial dollarization, noting that as of April 2026, the dollarization of loans had decreased to 42.5 percent, and the dollarization of deposits to 46.6 percent.Natia Turnava drew attention to the resilience and profitability of the banking sector, noting that by the end of 2025, the credit portfolio of the banking system, excluding the exchange rate effect, had increased by 14 percent, while the return on equity amounted to 22.3 percent.During the report, the NBG Governor also discussed the measures implemented in the following areas: consumer rights protection, the development of the securities market, strengthening the supervisory framework of the pension fund, upgrading payment infrastructure, supervision of virtual asset service providers, and the development of financial technologies.According to her statement, in 2025, the NBG actively continued to deepen international cooperation at the regional and global levels, which is crucial for Georgia's positioning as a regional financial hub.Following the conclusion of the report, the Governor of the National Bank of Georgia answered questions from the Members of Parliament.

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According to her, this stability is also confirmed by the unchanged forecast of economic growth, while the maximum neutralization of the influence of external factors is constantly being carried out.The head of the NBG also spoke about the inflation dynamics and noted that the indicator of rigid prices remains close to the target of 3%. In addition, against the background of strong foreign exchange inflows, the GEL is characterized by a strengthening trend, which reduces the pressure of imported inflation."We assume that oil prices will remain within the current range. As a result, inflation will begin to decline from the third quarter of this year and return to the target of 3% during the next year," - said Natia Turnava.The President of the National Bank added that this forecast is conditional and significantly depends on external factors, although domestic macroeconomic parameters provide grounds for optimism.

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As of 01.05.2026, the share of 2 systemic banks (BOG, TBC) is 89.4%.Banks with net profit over 10 million GEL

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The controversy was sparked by Shalva Papuashvili’s statement that German Ambassador Peter Fischer “would not personally have the desire to attend the Independence Day event” because he “takes the oath of the squadrons of contempt.”“As for the statement of the Speaker of the Parliament of Georgia, we recommend checking the facts. The facts are that Germany has been a large and leading supporter of the Georgian Defense Forces for decades. This can be easily verified with the Ministry of Defense. Everything else is disinformation,” the embassy said in a statement.The embassy did not specify whether the ambassador attended the May 26 event, although according to available information, Peter Fischer was not at the ceremonial ceremony. At the same time, the speaker of the parliament stated that an official invitation had been sent to all diplomats.The German mission emphasizes that the country’s goal is to continue friendly cooperation with Georgia and that the diplomatic mission avoids getting involved in any domestic political discussions.

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The financing package includes: Up to 75% of the funds designated for on-lending to MSMEs, with at least 10% specifically for women-owned businesses and at least 25% allocated for green finance projects, such as renewable energy and energy efficiency. Up to $125,000 in technical assistance from ADB to strengthen Ameriabank’s sustainability framework and systems. “This project will expand access to finance for MSMEs – especially women-owned enterprises – while advancing green investments in Armenia. By providing longer-term financing, we are supporting businesses to grow, create jobs, and contribute to a more inclusive and climate-resilient economy”, - Lyaziza Sabyrova, ABD’s Armenia Country Director, said.Hovhannes Toroyan, Chief Financial Officer at Ameriabank, commented: “We are delighted to strengthen our partnership with the ADB in supporting MSMEs across Armenia through greater access to affordable financing. As Armenia’s largest lender, with a strong focus on green and sustainable finance, we remain committed to driving inclusive growth and supporting the country’s long-term economic development.”“We are delighted to deepen our partnership with ADB. This facility will enable Ameriabank to continue empowering entrepreneurs across the country. The dedicated funding for green projects and women-owned enterprises underscores our shared commitment to building a sustainable and inclusive economy. I would also like to thank the teams involved for their collaboration and continued support throughout the process”, - Giorgi Shagidze, CFO of Lion Finance Group PLC, declared.

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According to the Government’s Parliamentary Secretary, Vakhtang Bachiashvili, the new legislation will distinguish between improper fulfillment of obligations and dishonest actions committed in order to obtain a contract.Under the current law, being on the blacklist restricts access to state contracts for a period of one year. According to the new draft, in case of detection of dishonest actions, the period of prohibition from participating in procurements will be increased to two years. In addition, this restriction will apply not only to the company itself, but also to its founder and partner.The second part of the legislative amendments concerns the promotion of the development of small and medium-sized businesses, which involves the institutional introduction of the concept of a subcontractor and the creation of a legal framework for its use.After the adoption of the draft law, the rules for relations with subcontractors will be established, including the mechanisms for their selection, distribution of responsibility and control. According to the government, the reform is expected to increase the economic capabilities of both small and medium-sized businesses and the efficiency of the public procurement system as a whole.

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According to the Investigative Service, none of the sanctioned companies had Georgia as their area of operation.“Investigation has established that Aifory LLC and ARVIX LLC were fictitiously registered in the names of other individuals in exchange for a certain fee, whilst in reality operating out of Moscow, Russia, and possessing neither assets nor offices in Georgia. In the criminal case on these matters, a court verdict of April 28, 2026, imposed fines of 30,000 lari and suspended sentences on three of the accused, whilst Davit Jinchaladze, the organiser of the criminal scheme, was sentenced to nine years and six months’ imprisonment.Regarding the unlawful activities of Rapira Group LLC, it has been determined that the company, registered via a power of attorney by a British national, operated solely through the website ‘rapira.net’. The site exclusively served Russian citizens, and its domain was registered with a Russian registrar. The company has no recorded banking transactions, assets, or offices on Georgian territory, and its registration was purely formal.The Investigative Service of Georgia’s Ministry of Finance, in coordination with international partners, continues its active work in combating financial and cybercrime, as well as in preventing and suppressing any attempts to circumvent international sanctions,” the statement reads.

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