Baku, Azerbaijan, June 9
By Emin Aliyev - Trend:
Georgia has successfully weathered a number of shocks, including the conflict with Russia, the global financial crisis, political transition, and regional instability, according to a statement from International Monetary Fund (IMF) and World Bank (WB).
IMF and WB statement covers the results of work conducted by a joint mission for assessment of Georgia's financial sector under the Financial Sector Assessment Program (FSAP).
IMF and WB mission said a positive medium-term outlook is emerging in light of the planned signing of EU Association Agreement and declining banking sector dollarization.
"Georgia's banking system has shown its resiliency in recent years, but also faces a number of risks and vulnerabilities that will need to be continuously closely monitored and managed," according to the statement. "These include long-standing vulnerabilities that relate to dollarization, liquidity, and loan concentration, which could impair the system's ability to cope with shocks, although they are currently largely mitigated."
IMF and WB joint mission was in Georgia between May 20 and June 3, 2014.
The dollarization coefficient of bank deposits in Georgia is about 59 percent, according to the Georgian National Bank.