Day: September 21, 2023
James John, Georgia’s mission chief to the IMF, told Civil.ge that IMF “looks forward to discussing with NBG and private banks the concerns” regarding NBG’s recent decision to change its regulations, following the sanctioning of Otar Partskhaladze. In a written communication with Civil.ge the IMF official conveyed that the IMF “then can make a fuller assessment, including to consider potential implications for Georgia’s IMF-supported program and our ongoing efforts to put it back on-track.”
“As we said earlier, quick and appropriate NBG action helped limit the impact of Russia’ war in Ukraine on the financial sector, including by requiring banks to adhere to relevant sanctions. We have concerns regarding the recent announcement by the NBG to alter its approach to sanctions.”
The IMF-supported program originally included a three-year stand-by arrangement with a loan of $289 million. After the completion of the first tranche of $40 million, Georgia was due to receive the second tranche this summer, but the IMF postponed the submission and Board approval of the second review of Georgia’s SBA, stating that the delay in Board approval was “partly due to disagreement over a change in the NBG’s management structure”.
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In a plenary session today, the Parliament of Georgia has appointed Nana Keinishvili and Teimuraz Khomeriki to the National Bank of Georgia’s (NBG) Board, despite President Zurabishvili’s objection.
President Salome Zurabishvili had nominated these candidates last week. However, her Parliamentary Secretary declared today that the President withdrew her support for their appointment. This decision was linked to the ongoing controversy surrounding the NBG and its recent modification of international sanctions enforcement regulation to shield former Prosecutor General Otar Partshkhaladze, who is subject to US sanctions.
Nevertheless, the parliamentary majority proceeded to approve the appointments during the plenary session. Parliament Speaker Shalva Papuashvili, meanwhile, asserted before the plenary vote that they possessed written consent from the candidates.
Failure to promptly appoint at least one new candidate within the next two months could lead to the dysfunction of the NBG. This concern arose because three board members resigned yesterday and the law requires that there be at least five active members out of a possible nine to maintain the board’s functionality.
New NBG Board Members
Nana Keinishvili graduated from the Agrarian University of Georgia in 1986, with a major in horticulture and winery. In 2005, she earned a PhD in Economic Sciences and has held the position of academician at the Phasis International Secular-Scientific Academy since 2022. Between 2012 and 2016, Keinishvili served as a Member of Parliament from the ruling Georgian Dream party, where she held the role of Deputy Chairperson of the Budget and Finance Committee. Additionally, from 2001 to 2012, she presided over the Red Cross Society in Georgia.
Teimuraz Khomeriki holds a degree in economics and finance from Tbilisi State University. In 2004-2005, he obtained a master’s degree in Public Finance from the National Graduate Institute for Policy Studies. Additionally, Khomeriki pursued studies in Development Economics and International Development at the Graduate Institute of International and Development Studies in Geneva. Throughout his career, he has served as a Programme Manager at the Swiss Cooperation Office for the South Caucasus and worked with the Budget Office of the Parliament of Georgia, among other roles.
Also Read:
- 21/09/2023 – NBG’s Turnava Accuses President of “Pressure”
- 20/09/2023 – President Zurabishvili Says Acting NBG President Must Resign
- 20/09/2023 – UPDATE: Three NBG Vice-Presidents, Advisor Resign