Central Bank Chief May Resign ? Opposition Alleges

Roman Gotsiridze’s position as head of the National Bank of Georgia (NBG) has again been called into question.

Parliament’s response to the NBG chief?s annual report on July 11 has been seen by many observers as a vote of no-confidence.

Although Parliament stopped short of demanding Gotsiridze?s resignation, it failed to give his report the customary formal approval. Instead, it said it ?has taken note of the report.?

Parliamentarians, in a resolution passed with 124 votes to one, also tacked on a series of recommendations for the central bank: to activate measures ?to forecast inflation processes;? to focus more on the possible negative consequences of a further appreciation of the Georgian Lari; to reinforce supervision over commercial banks; to reduce the NBG?s administrative expenses.

Criticism also came from the Executive. On July 11, Kakha Bendukidze, the state minister in charge of economic reforms, told reporters the central bank should have been more vigorous in its efforts to reduce risks posed by the inflow of foreign investment.

?[The NBG?s] performance from the microeconomic management point of view could have been better,” Bendukidze said. “The inflow of huge foreign investment needs more radical and decisive actions from the microeconomic point of view.?

Many opposition lawmakers have interpreted the mounting criticism as a sign that Gotsiridze?s days are numbered.

?It means that Mr. Gotsiridze should be preparing to quit,? MP Giorgi Tsagareishvili of the opposition Industrialist Party, said on July 11.

MP Irakli Iashvili echoed those sentiments. ?If you read between the lines, it’s clear that the ruling majority no longer wants him [Gotsiridze] in this position,? he said on July 11.

This is not the first time the central bank chief?s resignation has been raised. After being grilled by lawmakers from the ruling party in Parliament on May 10, where Gotsiridze had presented the NBG?s annual report, many expected him to resign then. Gotsiridze, however, said in late May that he had no plans to resign.

Although there has been no official call for Gotsiridze?s resignation, media sources have been busy speculating on who might succeed him. MP Irakli Kovzanadze, chairman of the parliamentary committee for budgetary and financial issues, seems to be the darling of the media. Rustavi 2 TV, however, suggested on July 11 that State Minister Bendukidze was also a contender.