Today the Governor of the National Bank of Georgia Giorgi Kadagidze held a special briefing related to the recent economic processes. Mr. Kadagidze spoke about the measures that the National Bank of Georgia plans to carry out from the next week.
“The depreciation of GEL has reached a dangerous point which can lead to increased inflation expectations and rising prices. As you know these processes inflict significant damage to those citizens who have loans in US dollars and incomes in the GEL. Therefore the further depreciation of the national currency will worsen the economic situation of citizens, and ultimately will affect the economy as a whole.
On this basis, we have decided to gradually tighten monetary policy from next week. For this purpose, all available instruments will be used gradually and to the extent necessary for macroeconomic stability.
At the same time, as you know, we have held the intensive talks and discussions with the government and it was resolved that state budget will be balanced or in the best case will be in proficit during the next months. At the same time it is important to note that in light of challenges existing in our economy today and on the basis of available data, the 5% economic growth forecast should be revised downward. Accordingly the financial and macroeconomic indicators should be planned so that the economic policies adequately reflect the challenges the country faces,” – stated the Governor of the National Bank.
Giorgi Kadagidze answered the questions of journalists.