Giorgi Vashadze Sentenced to Seven Months in Prison

As of the first quarter, credit investments in real estate (development; management; construction companies; construction materials) amounted to 4.843 billion GEL (Q1/2024 – 4.067 billion + 19%Y.Y).“For the Bank of Georgia, the construction development sector holds a significant share in our portfolio. Supporting businesses and providing them with a reliable partnership is our main priority. And we do not stop and continue to support businesses,” said Giorgi Sakhvadze, Head of Corporate Sales at the Bank of Georgia, during the launch of one of the new $7 million development projects (Tower Ketevan).The BOG also prioritizes investing in strategic energy projects for the country. The importance of new generation facilities was highlighted in a new G&T study, which analyzes all the issues to consider when investing: generation, consumption and price trends, export opportunities... Lending to the aforementioned sector has increased by 18.3%.

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EU Enlargement Commissioner Marta Koss described the arrests as “an attack on Georgia's democratic foundations, which are eroding day by day,” in a statement posted on social media platform X (formerly Twitter).“I stand with those fighting for a free and pluralistic society in Georgia and call on the Georgian authorities to release all journalists, activists and unjustly detained individuals,” Koss wrote.Echoing her concerns, Anita Hipper, the EU’s Chief Spokesperson for Foreign and Security Policy, said the detentions reflect a politically motivated crackdown that contradicts the values expected of a country pursuing EU candidate status.“Georgia: Politically motivated prosecution and detention of opposition leaders goes against basic democratic values,” Hipper posted. “This is an authoritarian tactic—the opposite of what is expected from an EU candidate country. Georgian Dream must stop using the justice system as a weapon.”The criticism comes in response to the June 23 arrest of two opposition leaders, Mamuka Khazaradze and Badri Japaridze, founders of the Strong Georgia party. They were sentenced to eight months in prison and banned from holding public office for two years for failing to appear before the parliamentary “Tsulukiani Commission.”In total, seven opposition leaders have now been detained in connection with the commission, including: Giorgi Vashadze, leader of Strategy Builder, Zurab “Girchi” Japaridze, Nika Melia, and Nika Gvaramia from the Coalition for Change, Givi Targamadze, veteran opposition figure, Irakli Okruashvili, former Minister of Defense.The wave of arrests has sparked widespread concern among civil society groups, international observers, and the diplomatic community, particularly as Georgia faces increasing scrutiny over its democratic trajectory amid ongoing EU integration efforts.

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According to the census data, as of November 14, 2024, 2,423 thousand people (62 percent) live in urban settlements, and 1,491 thousand people (38 percent) - in rural settlements. The share of the population living in urban settlements, by regions (except Tbilisi) is high in the Adjara A.R. (66 percent), which is due to the high number of Batumi population, and is low in Mtskheta-Mtianeti (20 percent), Kakheti (21 percent) and Racha-Lechkhumi and Kvemo Svaneti (24 percent) regions.According to the census data, 34 percent of the country's population lives in Tbilisi. The second and third largest regions in terms of population are Imereti and Kvemo Kartli, with 12.9 and 11.2 percent of the population, respectively.The 2024 Population and Agricultural Census of Georgia was conducted from November 14 to December 31, 2024. Census covered the entire territory of the country, except for the occupied territories.

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The position of Minister of Economy has been filled by Mariam Kvrivishvili, who previously served as Davitashvili’s Deputy Minister.“We are all happy at the Ministry of Economy that a new stage is beginning in the life of the ministry,” Davitashvili stated during the announcement, expressing gratitude to Bidzina Ivanishvili, the ruling Georgian Dream party’s honorary chairman, and offering his best wishes to his successor.Kvrivishvili thanked Prime Minister Kobakhidze for his confidence in her appointment, calling it a “great honor” to serve Georgia in this capacity.“All the knowledge and experience I have accumulated while working at the Ministry of Economy will help me to successfully complete ongoing projects, set new plans, and continue the economic growth of our country,” she said.Levan Davitashvili has held the post of Minister of Economy since February 2022, and served as Vice Prime Minister since July 2021. Prior to this, he led the Ministry of Environmental Protection and Agriculture from 2016 to 2022.Mariam Kvrivishvili has been Deputy Minister of Economy since 2021. She is a member of the Georgian Dream Political Council and has been involved in tourism and civil aviation development during her tenure at the ministry.

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In a statement posted on X (formerly Twitter), Dowty criticized the imprisonment of Mamuka Khazaradze, Badri Japaridze, and Zurab Girchi Japaridze, labeling their detention a “step taken to block electoral competitors.”“The imprisonment of influential opposition politicians in Georgia for boycotting parliament is a step taken to block their competitors in the elections,” Dowty wrote.On June 23, Tbilisi City Court sentenced Lelo party leaders Khazaradze and Japaridze to 8 months in prison, along with a 2-year ban from holding public office. Both were detained outside their party headquarters and escorted in handcuffs.The same day, Zurab Japaridze, leader of the “For Change” coalition, was also sentenced to 7 months in prison and similarly barred from holding public office for two years. All three politicians were convicted for refusing to appear before a parliamentary investigative commission, established by the Georgian Dream majority and chaired by Vice Prime Minister Tea Tsulukiani.They were charged under Article 349 of the Georgian Criminal Code, which penalizes noncompliance with parliamentary commission requests and is punishable by a fine, imprisonment for up to one year, or disqualification from public office for up to three years.On June 24, the Tbilisi City Court is expected to deliver its verdict in the case of Giorgi Vashadze, leader of the Strategy Agmashenebeli party. Vashadze, who also declined to appear before the same commission, has chosen not to attend the court hearing and will instead await the ruling at his party office, where opposition leaders and former President Salome Zurabishvili have gathered in solidarity.Vashadze, who faces identical charges, was released earlier on 50,000 GEL bail, which he paid on time.

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During the event, Khutsishvili held a meeting with AIIB Vice President Konstantin Limitovsky. Georgian Deputy Minister of Finance Ekaterine Guntsadze also attended the discussion.The meeting focused on cooperation between Georgia and the AIIB, highlighting the significance of partnerships in areas such as sustainable development, climate action, energy efficiency, and regional connectivity.Both parties expressed optimism about the future of their collaboration, emphasising continued engagement at both bilateral and regional levels.

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The meeting brought together Steering Committee members from participating countries, along with representatives from CCAMTAC’s donor and partner organizations. Among the attendees were Subir Lall, Deputy Director of the IMF’s Middle East and Central Asia Department, and Andrew Jewell, IMF Resident Representative in Georgia.During the meeting, participants reviewed the center’s recent activities and discussed the work program for the coming year. The agenda included deliberations on regional workshops, financial resources, and upcoming initiatives planned by the center and its partners.In her remarks, Ekaterine Mikabadze, First Vice Governor of the National Bank of Georgia, highlighted the importance of the IMF’s continued support. She noted that the Fund’s leadership, expertise, and long-term commitment have been instrumental in establishing CCAMTAC and shaping its strategic direction.“The IMF’s ongoing support ensures that CCAMTAC remains a cornerstone of regional capacity development, empowering our countries to enhance macroeconomic resilience and navigate a complex and challenging global environment,” said Mikabadze.According to the First Vice Governor of the National Bank of Georgia (NBG), the Bank fully recognizes the value of market-oriented educational programs, as well as the importance of knowledge and experience sharing. In line with this vision, and under the initiative of NBG Governor Natia Turnava, an educational space project a centralized platform was launched to encourage professionals across the region to both acquire and exchange expertise. She noted that the NBG is actively collaborating with international partners to support and advance this initiative.“Our collaboration with CCAMTAC is invaluable. Together, we organize seminars and workshops for central bank representatives from across the region, further reinforcing our long-standing partnership,” noted Mikabadze.Norbert Funke, Director of CCAMTAC, highlighted the four-year partnership with Georgia, expressing gratitude for the country’s active role in sharing its experience with monetary policy implementation across the region.“Over the past four years, we have enjoyed a close relationship with Georgia. CCAMTAC’s technical assistance has supported areas such as fiscal risk management, banking supervision, statistics, and more. What impressed us most was Georgia’s proactive sharing of its experience within the region. We are grateful that Georgia has hosted delegations from other countries, providing a platform to exchange insights and demonstrate how various aspects of monetary policy are implemented. A sincere thank you to our Georgian colleagues,” said Norbert Funke.As Subir Lall, Deputy Director of the IMF’s Middle East and Central Asia Department, noted, CCAMTAC serves as a vital pillar of the IMF’s engagement with the Caucasus, Central Asia, and Mongolia. He highlighted that strengthening institutional capacity is a key driver in shaping effective macroeconomic policies. Lall also underscored the importance of bringing together all CCAMTAC partners and member countries to reflect on achievements and define future priorities.“Georgia’s role has been significant from the outset of the center’s establishment. It has not only actively participated in CCAMTAC’s activities but also assumed a leadership role in fostering collaboration among peers. Georgia has helped cultivate an environment of trust and open dialogue around shared challenges facing all member countries. It is especially important that we have used our time productively, and I believe Georgia’s leadership in advancing CCAMTAC’s initiatives and promoting regional cooperation sets the stage for a successful year ahead,” stated Subir Lall.The International Monetary Fund’s Regional Capacity Development Center for the Caucasus, Central Asia, and Mongolia (CCAMTAC) is a collaborative initiative between the IMF and nine member countries: Azerbaijan, Armenia, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan. Launched in Almaty in 2021, the center serves a region with a combined population of over 100 million people. Its primary mission is to support the development of the region’s economic potential through targeted capacity-building activities.

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Adopting this strategy will increase access to information for the public and other stakeholders regarding the National Bank of Georgia's vision, priorities, and plans for consumer protection. It will also facilitate effective planning of the National Bank of Georgia's activities in this area and increase financial organizations' awareness of future activities.The document outlines the priorities and main directions of market conduct supervision, as well as evaluation indicators and their monitoring process.To ensure that the strategy fully considers the interests of stakeholders, the National Bank of Georgia is publishing the initial version of its Market Conduct Supervision Strategy. The NBG encourages all stakeholders to engage in active communication and share their opinions regarding the strategy.

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