David Utiashvili, head of the Financial Stability Department of the National Bank of Georgia, participated in the panel Increased Interest Rates and Financial Stability held at the conference organized by the International Monetary Fund and the Central Bank of Belgium.

Giorgi Edilashvili, head of the International Relations Department of the National Bank of Georgia, also attended the conference.

The keynote address at the conference was delivered by Kristalina Georgieva, the Managing Director of the International Monetary Fund.

During his address, the head of the Financial Stability Department at the National Bank of Georgia delved into the intricacies of the global transmission of tightened monetary policy and its repercussions on the financial sector. Emphasizing the hurdles encountered by foreign currency borrowers amidst rising interest rates, David Utiashvili underscored that despite heightened vulnerability, the proactive macroeconomic trends and policies enacted by the NBG safeguarded the stability of the financial sector without posing any imminent threats. Further, he highlighted that the rate of non-performing loans stands at its lowest level in recent decades.

​"To safeguard the solvency of borrowers, the NBG has introduced a number of macroprudential instruments, especially for foreign currency. In conjunction with setting a minimum loan amount threshold, stringent regulations have been enforced on the loan service ratio, coupled with limitations on maximum maturity. Additionally, borrowers are mandated to maintain a buffer to withstand a 3% interest rate shock. These measures reflect a prudent policy approach, ensuring that despite rate fluctuations, asset quality remains consistently high," David Utiashvili remarked.

The panel also featured Boris Vujčić, Governor of the Croatian National Bank, Amir Yaron, Governor of the Bank of Israel, and Hans Degryse, a professor at the Catholic University of Leuven.