Azerbaijan, Baku, 30 May / corr. Trend I. Khalilova/ The National Bank of Georgia (NBG) reacted to the world financial crisis on time which the affected bank sector and saved the country's economy from severe losses, Zurab Gvasalia, the President of the Association of Banks of Georgia said.
"This process has not ended as yet, therefore, NBG regularly controls the situation," Gvasalia said. It stimulated serious reforms in the National Bank.
The function of bank control has been transferred from NBG to a special body in order to let the National Bank to focus only on fighting inflation and regulating prices. The exchange rate of dollar dropped by 30% against lari in 2007 because of the global processes, head of the Association said.
The Finance Agency performs the function of the bank control, and a Financial Monitoring Body has been established under it to fight money laundry. Though Agency has been established at the National Bank, its director is appointed by the President of the Republic.
"There is a similar practice in the European countries as well, and it will have a positive impact on anti-inflation measures," Gvasalia said.
As a result of 2007, the inflation in Georgia made up 11% and12.2% in April 2008 as compared to the same period of 2007. For the sake of comparison, the growth rates of consumer prices made up 16.7% in 2007.
At present, a total of 22 banks function in Georgia, with the same figure making up 46 in Azerbaijan.
The correspondent can be contacted at: [email protected]