NBG Head: Georgia's financial system copes with the crisis
Georgia's financial system is coping with the crisis that began against the background of the war in Ukraine. This was stated by the head of the National Bank of Georgia Koba Gvenetadze.
"The stability of the financial system is our constant goal. We constantly take care of this, and the financial system withstands the situation well thanks to the measures and analysis that we constantly carry out," Gvenetadze said.
He stressed that Georgia has gained serious experience in this area during the coronavirus pandemic.
"Unfortunately, there are new challenges, however, I want to say that the buffers that were used during the covid, their restoration has already begun and in many cases completed," said the head of the NBG.
Here, he stressed that, being part of the global financial system, Georgia will have to ensure compliance with the sanctions imposed by the West against Russia. The protection of the country's financial system from "any transactions with unauthorized persons and companies" is guaranteed by the fact that the shares of the country's two largest commercial banks – TBC Bank and Bank of Georgia - are listed on the London Stock Exchange, Gvenetadze believes.
Russia, which ranks second among Georgia's largest trading partners, has been effectively cut off from the global financial system due to sanctions. The West has seized almost half of the gold and foreign exchange reserves of the Russian Federation. The country's state banks have been disconnected from SWIFT, the international information exchange system between financial institutions. In addition, Russia was left without cash dollars and euros, as the United States and the EU banned the supply of banknotes. The West also banned lending to Russia, closing the main global capital market for it, as well as access to funds from the IMF and the World Bank.
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NBG Head: Georgia's financial system copes with the crisis
Georgia's financial system is coping with the crisis that began against the background of the war in Ukraine. This was stated by the head of the National Bank of Georgia Koba Gvenetadze.
"The stability of the financial system is our constant goal. We constantly take care of this, and the financial system withstands the situation well thanks to the measures and analysis that we constantly carry out," Gvenetadze said.
He stressed that Georgia has gained serious experience in this area during the coronavirus pandemic.
"Unfortunately, there are new challenges, however, I want to say that the buffers that were used during the covid, their restoration has already begun and in many cases completed," said the head of the NBG.
Here, he stressed that, being part of the global financial system, Georgia will have to ensure compliance with the sanctions imposed by the West against Russia. The protection of the country's financial system from "any transactions with unauthorized persons and companies" is guaranteed by the fact that the shares of the country's two largest commercial banks – TBC Bank and Bank of Georgia - are listed on the London Stock Exchange, Gvenetadze believes.
Russia, which ranks second among Georgia's largest trading partners, has been effectively cut off from the global financial system due to sanctions. The West has seized almost half of the gold and foreign exchange reserves of the Russian Federation. The country's state banks have been disconnected from SWIFT, the international information exchange system between financial institutions. In addition, Russia was left without cash dollars and euros, as the United States and the EU banned the supply of banknotes. The West also banned lending to Russia, closing the main global capital market for it, as well as access to funds from the IMF and the World Bank.
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