Includes special features of this country’s banking system and rules/laws that might impact U.S. business.

The central bank is the National Bank of Georgia (NBG).  It sets monetary policy, issues licenses, and supervises the activities of banking institutions and currency exchange offices.  To regulate circulating money and encourage deposits in Georgian lari (GEL), the national legal tender, the NBG requires commercial banks to keep a certain percentage of their foreign currency deposit liabilities in reserve.

The U.S. government has assisted the NBG to accelerate financial sector development in Georgia.  NBG and most commercial banks use SWIFT to process international payments and messages.  There are no restrictions on the number of bank accounts individuals and enterprises may hold with Georgian banks.  Banking is one of the fastest growing sectors in the Georgian economy.  The cost of lending remains high but may decline as Georgia's banking sector develops.

The banking system currently consists of domestically based small- and medium-sized banks, a handful of large banking institutions based in Tbilisi with subsidiaries (e.g., Vneshtorgbank, Privat Bank), and branches of two foreign banks (Turkish Bank Ziraat and the International Bank of Azerbaijan).  

Credit from commercial banks is available to foreign investors as well as domestic clients, although interest rates are high.  Banks continue offering business, consumer, and mortgage loans.  The International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), U.S. Overseas Private Investment Corporation (OPIC), Asian Development Bank (ADB), and other international development agencies have a variety of lending programs that make credit available to large and small businesses in Georgia.  At the beginning of 2018, 69 microfinance organizations operated in Georgia, with total assets of around $630 million, making small credit available to businesses.

For more information see Chapter 6, Investment Climate Statement, Efficient Capital Markets and Portfolio Investment section.
 

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