On December 2005, the reconciled Draft Law on a deposit insurance system will be submitted to the legislative bodies of Georgia for its further consideration and approval. This was announced at the presentation of the above-mentioned draft law held at the National Bank of Georgia. The President of the National Bank of Georgia, Roman Gotsiridze and the officials of the commercial banks attended the above-mentioned presentation.   As it was stressed during the presentation, in December of the current year, legislative bodies will consider the reconciled Draft Law on a deposit insurance system existing in the National Bank of Georgia and the Finance and Budget Committee of the Parliament of Georgia.   As far as the structure of a deposit insurance system is concerned, the deposit insurance agency will be established. The membership of the deposit insurance agency will be obligatory for the commercial banks functioning in Georgia.   According to the Draft Law on a deposit insurance system, in the event of bankruptcy of a bank, depositor will be guaranteed to receive the amount established in accordance with the deposit insurance scheme. According to the definition of the initiators of a draft law, this will facilitate the increase of the role of a deposit base and financial intermediaries. Increase of the volume of deposits will result in the reduction in the cost of funds attracted by the commercial banks that will serve as a an incentive  for the reduction of credit portfolio interest rates.   According to the decree of the President of the National Bank of Georgia on establishing the legislative and organizational form of deposit insurance system structure, a special group was formed to work out the draft law on “Deposit Insurance System”. The above-mentioned group highly cooperated with the Credit Institution of Reconstruction (KfW, Germany).   Following the visits of KfW experts in the National Bank of Georgia, at the end of October of the current year, Georgian and local experts continued their work on the draft law in Germany.