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President's Administration Against NBG Rights Restrictions

By Thea Mariamidze
Friday, may 29
The President’s administration is against the separation of the Banking Supervision Service from the National Bank of Georgia.

The President’s economic advisor Giorgi Abashishvili held a meeting with economic experts on May 27 concerning the issue.

At the meeting they discussed the initiative of Budget and Finance Committee Chairman Tamaz Mechiauri, who raised the issue to deprive the banking supervision function from National Bank and form it as the separate institution, free from political influence.

Abashishvili said his administration is against this initiative, because it will harm the banking sector and make it more politicized.

He also underlined that the President’s Administration always acts transparently and in December 2014 the member of National Bank Committee was presented by them fairly.

“The separation of Supervision Service from National Bank changes the model and it absolutely is not grounded by economic motives, also during the process of drafting, they have not considered the recommendations of international organizations and experts,” the advisor stressed.

The economic experts expressed different opinions. Some agreed with Abashishvili saying that the changes will be harmful while others welcomed the initiative of Mechiauri.

Expert in economic affairs Levan Kalandadze is in favour of the initiative.

According to him Supervision Services in independent mode work successfully in many foreign countries and there are no convincing arguments why it should not be formed as the independent institution.

Analysis and Forecasting Center of Tbilisi State University is amongst the supporters of the issue.

Its Chair, Otar Anguridze, believes that by separating Supervision Service from the National Bank the processes will become more transparent which will reflect positively on strengthening of the national currency.

The head of the Economic Development Centre, Roman Gotsiridze, said that the adoption of the initiative will cause the destruction of the National Bank.

“These are steps against business and human freedom and I think this draft law was not made up in parliament,” Gotsiridze said.