National Bank of Georgia keeps refinancing rate unchanged
BAKU, Azerbaijan, Jan.29
By Tamilla Mammadova – Trend:
In accordance with the decision of the Monetary Policy Committee of the National Bank of Georgia, the refinancing rate will remain unchanged at 9 percent, Trend reports citing the National Bank of Georgia.
As reported, by December 2019, the annual inflation rate in Georgia was 7 percent.
According to the National Bank, at the beginning of 2019, along with one-time factors, the depreciation of the nominal effective exchange rate had a significant impact on inflation.
“In response to this, in September last year, the National Bank began tightening its policies aimed at neutralizing inflationary pressure from the depreciation of the exchange rate. In December, the nominal effective exchange rate strengthened slightly. However, it still remains at the level of depreciation,” noted the bank.
As reported, over the past period, accelerated economic growth and high lending have been recorded.
As of January 1, 2020, the banking sector of Georgia was represented by 15 commercial banks, including 14 banks controlled by foreigners.
The banking sector's own funds (equity capital) equal 5.7 billion lari ($1.9 billion), which makes up 12.2 percent of the commercial banks total assets.
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