The United States Department of State publishes the Investment Climate Statements and gives positive assessment to the accomplishments of the National Bank of Georgia. The report thoroughly discusses the Investment climate in Georgia, the country’s economic situation and implemented monetary and fiscal policies.

 

"The IMF, credit rating agencies, and other international organizations positively assess the NBG’s macroeconomic framework and inflation targeting regime. In June 2021, the NBG was awarded the Transparency Award by the international publisher Central Banking. The award highlighted the improved communications on monetary policy, financial stability, consumer protection and financial education. The NBG also was nominated for the Risk Manager Award of 2021 by the same group. In 2021, Global Finance named Koba Gvenetadze, Governor of the NBG, among the Best Central Bankers for the fourth time", - as stated in the report.

 

The document evaluates the implemented measures by the National Bank of Georgia, which are in full accordance with the international sanctions imposed against russia. "The NBG and Georgian financial intuitions act fully in accordance with the financial sanctions imposed by the United States and others on the Russian Federation. Compliance with international financial sanctions is systematically checked during the onsite inspections of financial institutions".

 

The Investment Climate Statement also discusses the development level of the Banking Sector, that was reached by the supervisory processes and regulations. According to the report: "The banking system is stable, well capitalized, liquid, and profitable. The financial sector maintains solid capital and liquidity buffers against potential threats. The share of non-performing loans (5.2% as of January 1, 2022) is declining. As outlined by the 2021 IMF Financial System Stability Assessment, Georgia’s banking supervision practices and regulations have significantly progressed and are in line with Basel/EU directives. Despite substantial progress, dollarization remains the main challenge for the system, given that around half of the credit portfolio is disbursed in foreign currency, largely to unhedged borrowers".

 

Additionally, the Statements published by the US Department of State also evaluates the progress regarding Anti-Money Laundering and Financing of Terrorism. "In 2020, the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MoneyVal) approved the Fifth Round Evaluation Report of Georgia. The report assessed the NBG’s supervisory process and practices as having effective outcomes. The report also notes that financial institutions generally have a good understanding of risks and are part of large banking or other financial groups that have put in place sophisticated internal systems and controls which effectively mitigate money laundering and terrorism financing risks."

www.state.gov