Head of Georgian National Bank Considers Possible Integration of Azerbaijani and Georgian Financial Markets
Azerbaijan, Baku / Trend / Integration of Azerbaijani and Georgian financial markets in future is doubtlessly possible and moreover its is expedient, the President of the Georgian National Bank, Roman Gotsiridze, said to Trend in an exclusive interview. A branch of Azerbaijan's Caucasus Development Bank is already operating in Georgia and a daughter enterprise of the International Bank of Azerbaijan - Georgia is beginning its operation. This integration will increase liquidity of securities of both countries. However, profound rise of liquidity will depend on a number of subjective and objective factors," Gotsiridze noted.
All measures necessary for maximal openness of Georgian financial system for foreign investors are being made. Registration of the branches of banks and insurance companies is implemented in minimum term. The Securities Commission, Insurance Control Service and Financial Monitoring Service are merging into an independent organization at the Georgian National Bank. There are virtually no restrictions for movement of capital or currency operations in Georgia.
As a result of the investments put by non-residents at 10 commercial banks, 66% of joint stock comprising over 1bln lari (Georgian national currency) is now owned by non-residents which control over 67% assets of the system. As for liabilities, the funds borrowed from non-residents exceeded 1bln lari and the share of non-resident at joint liabilities made up 1/3.
In 2005-2006, joint assets of Georgian commercial banks increased by 148.5%, compared to 31 December 2004, joint stock increased by 141.2%, and net profit of bank system increased by 238.4%. The loans allotted for economy increased by 185.4% (the loans allocated in national currency by 422.4%, in foreign currency by 161.9%). The amount of deposits increased by 104.7% (deposits in national currency by 144.2%, deposits in foreign currency by 103.6%).
As a result of the recent three years, foreign currency reserves of the Georgian National Bank increased seven times (over US $1.34bln).