Switzerland suspends visa-free travel for holders of Georgian diplomatic and service passports

Retail tariffs are set by the Georgian National Energy and Water Supply Regulatory Commission (GNERC) under a predefined and transparent methodology. The current increase is mainly driven by two factors: higher investment plans and rising electricity procurement costs.The tariff increase directly raises utility costs for both households and those businesses that purchase electricity on the retail market. In our view, the change will also have several additional effects:  The tariff increase will add around 0.7 percentage points to the overall price level (inflation). Higher investment spending will support infrastructure upgrades and help reduce outage frequency, especially in the regions. More expensive electricity will strengthen business interest in self-generation, as was seen after the sharp tariff increase in 2021. Rehabilitation of the transmission network and substations may also reduce grid-connection costs for small power plants. It is important to note that the change in the retail tariff does not determine the selling price of power plants. Given the structure of Georgia’s electricity market, generation assets sell electricity on the wholesale market, while the retail tariff is formed on the basis of those underlying costs. Accordingly, wholesale prices change first, and the retail tariff then reflects these changes.The retail tariff mainly consists of 3 parts - the transmission infrastructure tariff, the electricity procurement cost, and state taxes. The first two components made the largest contribution to the increase in the final retail tariff.1. Infrastructure componentThe infrastructure component reflects the cost of rehabilitation, reinforcement, and expansion of transmission lines, substations, and the distribution network. Accordingly, in both distribution areas, a significant part of the tariff increase is linked to higher investment in the grid.In the regions, a major factor is Energo-Pro Georgia’s 2026-30 investment plan. During this period, the company will invest about GEL 200 mn per year on average, amounting to more than GEL 1 bn in total. The main purpose of these investments is to rehabilitate the network, improve service quality, and reduce outages.In Tbilisi, more than GEL 400 mn of investment is planned in the Telasi network over the next 5 years. These funds will be directed toward connecting new districts to the grid, replacing old meters, and upgrading existing infrastructure.In addition, an important part of the infrastructure component is the tariff of the Georgian State Electrosystem (GSE), which was already increased in 2025 and remains in force through end-2026. At the same time, GSE plans to update its investment plan this year, which may become an additional, though relatively small, source of tariff pressure in the coming years.2. Electricity procurement costThe second main component of the tariff is the price at which suppliers purchase electricity. This component increased for several reasons: Electricity consumption is rising, and additional demand is met by relatively expensive resources. Another important factor is the increase in the Enguri and Vardnili tariffs. Their tariff rose by 66% from January 2025. These plants are among the cheapest resources in the system and play an important role in keeping household tariffs relatively low. However, the share of Enguri-Vardnili in meeting retail consumption has been declining over time, driven by higher consumption, hydrological conditions, and demand dynamics in Abkhazia. In addition, the tariffs of Khrami 1 and Khrami 2 increased from 2026. These plants’ government-agreed tariff 4 Georgia │ Energy Retail tariff growth April 1, 2026 arrangements expired, and they moved under GNERC regulation, which resulted in higher tariffs. The price and volume of balancing electricity purchases also increased. This was driven by the removal of gas subsidies for thermal power plants, more expensive imports, and the commissioning of new plants. Accordingly, the increase in the retail tariff cannot be explained only by grid investment costs - a key factor is also the rise in electricity procurement costs. 3. VATThe final retail tariff also includes value added tax, which is directed to the state budget. 

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The Central Banking Meetings forum in Kuala Lumpur brought together central bankers and senior representatives from Japan, Malaysia, India, Turkey, Romania, Azerbaijan, New Zealand, Switzerland, South Korea, Singapore, Saudi Arabia, China, and other countries.According to the National Bank of Georgia, the event was designed to facilitate the sharing of practical experience amongst central bank leaders and to deepen cooperation, with a view to developing joint strategies, strengthening regional integration, and introducing innovative solutions.Speaking during the panel discussions, Ekaterine Galdava drew attention to the reforms undertaken by the National Bank of Georgia and to the importance of regional payment integration.She noted that the foundation of a successful, interoperable payments ecosystem rests upon modern domestic payments infrastructure, shared technical standards, and effective regional coordination.“The National Bank of Georgia is actively working on upgrading its Real-Time Gross Settlement (RTGS) system. The upgraded system will have the technical capacity to operate on a 24/7 basis and will support multi-currency transfers. Furthermore, the introduction of an Instant Payment System (IPS) is planned for the end of 2026, which will enable users to carry out transactions within seconds, at any time of day. Both systems will be built on the ISO 20022 messaging standard, which will significantly improve the interoperability of payment systems both domestically and at the international level,” said Ekaterine Galdava.The NBG Vice President also spoke about Georgia’s strategic location and the significance of the Middle Corridor, noting that the country is well-positioned to become a regional financial hub between Europe and Asia.“Georgia’s strategic location affords us a unique opportunity to become the region’s financial hub between Europe and Asia. Real-time payments and the integration of payment systems will, in turn, facilitate trade growth, reduce transaction costs, and strengthen regional economic ties,” she stated.During the panel discussion held as part of Central Banking Meetings, Ekaterine Galdava also addressed the introduction of financial innovations in Georgia, underlining that the National Bank of Georgia is actively fostering financial innovation across both regulatory and technological development fronts.She further noted that the NBG has already introduced a regulatory framework for digital banks and virtual asset service providers, established regulatory and technical sandboxes, and developed a fintech development strategy, all of which serve to ensure the safe integration of artificial intelligence within the financial sector.The panel discussion held as part of the Central Banking international conference also featured the participation of Aleksandre Ergeshidze, Head of the Specialised Risks Department at the NBG. The panel addressed cyber threats facing the financial sector and the means to tackle them, as well as practical strategies for cyber risk management and the role of central banks in this regard.

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Debating a report of the Congress fact-finding visit to Georgia on 24-25 September 2025, presented by Stewart Dickson (United Kingdom, ILDG), the Congress deplored the fact that the  local elections held on 4 October 2025 were affected by a lack of political dialogue and competitiveness, widespread boycotts, frequent and problematic changes to electoral law, underrepresentation of women, and attempts to ban, intimidate and arrest leaders and candidates of opposition parties.It regretted that dissenting voices – notably the youth, civil society, and the media – faced growing intimidation, arrests and criminal proceedings, restricting fundamental freedoms, and that for the first time in decades, the 2025 local elections were held without credible international and domestic observation missions, including by the Congress, while the rights of observers were restricted.In its resolution and recommendation, the Congress stressed that the Georgian authorities failed to foster dialogue and build the necessary trust in the 2025 electoral process, turning the elections into single-party contests in half of the municipalities with allegations of pressure of opposition candidates in the rest. At the same time, attempts to ban opposition parties, as well as arrests and criminal proceedings against opposition representatives further silenced political pluralism.The Congress believes that the corrosive effect of all these issues did not provide the democratic conditions for inclusive, free and fair elections and further estranged Georgia from its European commitments, notably the European Charter of Local Self-Government.Congress members called on the Georgian authorities to urgently resume political dialogue at all levels of government, through an inclusive political process which engages all stakeholders, to reduce polarisation and restore the checks and balances essential in a pluralist democracy. The authorities were also urged, inter alia, to stop criminalising opposition voices and rescind the amendments facilitating the ban of opposition parties; implement outstanding Congress Recommendations and Venice Commission opinions and rebuild genuine local democracy in line with the European Charter of Local Self-Government; and repeal amendments to the Election Code that are in contradiction with European democratic standards and those restricting election observation, as well as all legislation in breach of human rights.The Congress highlighted its commitment to continue political dialogue with the Georgian authorities, notably via the urgent organisation of a mission to monitor the application of the European Charter of Local Self-Government in Georgia.

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According to the Ministry of Environmental Protection and Agriculture, a further restriction on plastic consumption also enters into force today. Specifically, public procurement bodies are henceforth prohibited from purchasing plastic cups, containers, or beverages bottled in plastic vessels of up to three litres. The restriction does not apply to the procurement of drinks in plastic bottles of up to three litres where such purchases are made for the needs of the defence forces and military personnel.Compliance with these regulations will be overseen, within their respective remits, by the National Food Agency, the Department of Environmental Supervision, and the Revenue Service of the Ministry of Finance.Under the Code of Administrative Offences of Georgia, violations of the requirements set out in the decree will carry a fine of 1,000 lari and confiscation of the relevant goods; repeat violations will attract a fine of 2,000 lari and confiscation.“It is important to note that the regulation does not apply to the export of plastic products. Manufacturers producing goods for export are required to notify the Department of Environmental Supervision in writing, at least one month before commencing production, of the proposed start and end dates of production, the quantity of goods to be manufactured, the destination countries, and the intended export schedule,” the Ministry of Environmental Protection and Agriculture stated.

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At a municipal government meeting held on Wednesday, Kaladze noted that three Turkish and one Chinese companies are among the bidders. The project, which is being implemented in accordance with the procurement rules of the Asian Development Bank (ADB), is financed from the state budget.“All four bidders are quite large and experienced companies that have implemented a number of similar projects. A detailed analysis of the documentation has begun, after which the winner will be identified and a contract will be signed,” Kaladze said.The main parameters of the project are as follows: Route: from microdistricts 3 and 4 of Didi Dighomi to metro station “Didube” Length: approximately 7.5 kilometers Infrastructure: 11 stops and a depot, which will serve 11 trams Timeline: The project is in three stages (concept, detailed design, construction) and its total completion period is 36 months The new tender process began after the first tender announced in October 2025 was canceled due to the need to adjust technical parameters.The construction of the tram line is part of the Tbilisi Transport Development Plan, which was prepared by the Danish consulting company Ramboll. The project aims to integrate the densely populated district of Didi Dighomi into the city’s transport network and reduce travel times.The tram system in Georgia was completely dismantled during the previous government, making this project the first such initiative in the history of independent Georgia.

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Balance of goods remains the main driver of the current account balance. Trade in goods deficit increased by 6.3 percent year-on-year, amounting to USD 1.9 billion (GEL 5.0 billion) in the fourth quarter of 2025.The improvement in the current account balance in the fourth quarter of 2025 was primarily driven by increased service exports. In particular, the services surplus rose by 14.1 percent, or USD 256.6 million, compared to the same period of the previous year, reaching USD 1,038.5 million. The travel services exports reached USD 1.1 billion (GEL 2.8 billion) in the fourth quarter of 2025, up by 9.2 percent annually. Exports of transportation services remained at a high level, amounting to USD 418.4 million in the fourth quarter of 2025, equivalent to 3.9 percent of GDP. Meanwhile, income from exports of computer and information services also continued to grow, reaching USD 357.0 million in the fourth quarter of 2025 and accounting for 3.4 percent of GDP.Net income account totaled USD -634.5 million (GEL -1.7 billion) in the fourth quarter of 2025. Net compensation of employees, the positive component of income account increased by 18.4 percent year-on-year while net investment income - the negative component grew by 9.1 percent over the same period.The current transfers account remained positive. Credits of current transfers increased by 14.7 percent year-on-year, totaling USD 1.0 billion (GEL 2.7 billion). Net transfers of the private sector rose by 15.0 percent, amounting to USD 945.4 million (GEL 2.6 billion).The current account deficit is predominantly financed by foreign direct investment. Net foreign direct investment amounted to USD 374.4 million (GEL 1.0 billion) in the reporting period, accounting for 3.5 percent of GDP.

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International assets totaled USD 19.9 billion (GEL 53.7 billion) as of December 31, 2025, increasing by USD 2.6 billion compared to the previous year.International liabilities increased by USD 5.1 billion during the year, reaching USD 52.3 billion (GEL 140.8 billion).

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Public sector external debt amounted to 11.7 billion USD (31.6 billion GEL) or 30.7 percent of GDP, out of which, debt of the general government amounted to 9.2 billion USD (24.8 billion GEL) or 24.1 percent of GDP. External liabilities of the National Bank of Georgia amounted to 780.9 million USD (2.1 billion GEL) or 2.0 percent of GDP, and the bonds and loans of public enterprises were correspondingly 473.1 million USD (1.3 billion GEL) or 1.2 percent of GDP and 1.3 billion USD (3.4 billion GEL) and 3.3 percent of GDP.Banking sector external debt amounted to 9.5 billion USD (25.5 billion GEL) or 24.8 percent of GDP; Other sectors’ external debt stood at 5.0 billion USD (13.4 billion GEL) or 13.0 percent of GDP; While 2.4 billion USD (6.6 billion GEL) or 6.4 percent of GDP was the intercompany lending. 86.7 percent of the gross external debt of Georgia was denominated in a foreign currency.The net external debt of Georgia amounted to 12.6 billion USD (34.0 billion GEL) or 33.1 percent of the 2025 annual GDP. Net public sector external debt was 5.6 billion USD (15.0 billion GEL) or 14.6 percent of GDP.External liabilities of the National Bank of Georgia decreased by 38.6 million USD, out of that, transactions led to external debt’s decrease by 37.5 million USD and exchange rate changes led to decrease by 1.0 million USD. By the end of the 2025, the external debt of the National Bank of Georgia amounted to 780.9 million USD, of which 475.5 million USD are Special Drawing Rights (SDR)1, which have no maturity date, therefore there is no obligation to repay them as long as Georgia is a member of the IMF.

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