- China Nears Global Reserve Status: “There Will Be a Reset of the Financial Industry” 2015-05-29 11:26
- Stocks Began Falling Right At This Time Of The Year Just Prior To The Last Financial Crisis 2015-05-29 00:32
- Rand Paul: ‘Disingenuous’ Obama Can Stop NSA Spying Any Time He Wants 2015-05-26 22:11
- Wealthy Installing “Safe Rooms” to Prepare for Civil Unrest? 2015-05-26 21:34
- Obama Usurps Local Police With Fake “Ban” on Militarization 2015-05-26 21:28
- RIP: Over 100 newspapers dumped in year, ads down 50%, circulation hits bottom 2015-05-26 01:36
Georgia stops banking2011-09-09 11:28
The Bankers Association of Georgia should not have repeated that the financial sector is viable and stable. It was like putting an evil eye on it. Despite the desire of the country's national bank to get listed on London Stock Exchange, one of the financial giants - HSBC - is leaving Tbilisi. This strategic decision is connected with the fact that the British group has failed to make enough progress to provide normal functioning. At the same time, cunning Englishmen decided to merge Georgia's main bank and won't end up losing.
Before 1997 direct foreign investments into Georgia's economy were insignificant making 0.17% of the GDP. Further involvement of the Caucasian republic into infrastructural projects as a transport and communication component boosted inflow of foreign money. So it's little wonder that Mikheil Saakashvili treasures his gas, railway and other hubs that helped him increase the budget and get the country up a bit. This money made a serious contribution to GDP growth in 2003 - 11.1%.
If foreign investments in various projects amounted to EUR 2 bn, a much smaller sum was brought to the financial sector - EUR 74.4 mln, only 4.1% of the total volume. Late in July 2010 Fitch, an influential rating agency, officially confirmed improvement of the situation in Georgia's banking sector remarking that banks are good at overcoming consequences of the financial crisis and are likely to end the economic downturn in the country. The Bankers Association of Georgia too stated that the sector has enough liquidity to grant loans to private enterprises, and that the volume of deposits had reached GEL 4 bn. It would not have been so sad if we didn't know that the end of the last year was marked with a GEL 65 mln loss.
In reality Georgia's banking sphere is divided between two large players - the Bank of Georgia and TVS Bank that basically monopolized financial flows in the Caucasian republic. Nearly 53% of all money transfers are controlled by the main credit organization of Sakartrvelo. But even the leadership on the domestic market did not save the Bank of Georgia from drastic slump in capitalization: it has lost more than 1% on Tbilisi stock exchange. The slowdown in sales of its securities is even more impressive - 42%.