The National Bank of Georgia said the Georgian Parliament backed a resolution on the bank’s 2025 activity report after President Natia Turnava presented its review of monetary, foreign exchange and supervisory policy and the audited financial statements. In her presentation, Turnava said average annual inflation was 3.9 percent in 2025 and that the bank raised the monetary policy rate by 0.25 percentage points to 8.25 percent in May 2026 to help return inflation to the 3 percent target after supply-side shocks fade. The presentation also pointed to a current account deficit of 2.6 percent of GDP in 2025, foreign direct investment up 7.6 percent year on year to 4.4 percent of GDP, and international reserves of USD 6.16 billion at end-2025, rising to a record USD 6.65 billion in February 2026. As of April 2026, loan dollarization had fallen to 42.5 percent and deposit dollarization to 46.6 percent. The report also highlighted a 14 percent increase in the banking system’s credit portfolio excluding exchange rate effects and a 22.3 percent return on equity at end-2025, alongside measures on consumer protection, securities market development, pension fund supervision, payment infrastructure, oversight of virtual asset service providers and financial technology.
National Bank of Georgia2026-05-27
National Bank of Georgia receives parliamentary backing for its 2025 activity report
The National Bank of Georgia reported to Parliament on its 2025 activities, with lawmakers backing a resolution on its monetary, foreign exchange and supervisory policies and audited financial statements. President Natia Turnava noted 3.9 percent average inflation in 2025, a May 2026 policy rate increase to 8.25 percent, a 2.6 percent of GDP current account deficit, higher foreign direct investment, record reserves, reduced dollarization, strong banking sector credit growth and profitability, and continued work on consumer protection, capital markets, pensions, payments, virtual asset service providers and financial technology.