PM Slams Critics of Bill on Banking Supervision

PM Irakli Garibashvili slammed the critics of a controversial bill on the banking supervisory agency, saying that an “artificial stir” was created by “irresponsible” opponents and aimed at “scaring off investors.”
 
“I think this stir, which was caused artificially by our opponents, is categorically unacceptable and it is regrettable that the president has joined this stir and hubbub,” Garibashvili told journalists on July 29, referring to President Giorgi Margvelashvili’s opposition to the bill, which he intends to veto.

The PM said that “all the remarks of the EU and international financial institutions have been taken into consideration fully” in the process of drafting the bill, which was adopted by the Parliament on July 17.

“Therefore I cannot see any basis for such a stir. This is an absolutely, artificially stirred campaign, which harms business and the investment climate and is a matter of a serious responsibility. These people do not understand at all what the state is and what the state interests are, they do not realize the responsibility they have before their own country and people. They have a completely irresponsible attitude – I am referring to the people, who are creating artificial stir,” Garibashvili said, adding that Poland, which has “one of the best banking sectors”, also has its banking supervisory authority separate from the central bank.

The bill envisages removing banking supervisory functions from the National Bank of Georgia (NBG). IMF, EBRD, Asian Development Bank (ADB), and the World Bank said in “Georgia’s case, moving banking supervision out of the NBG does not seem prudent.”

“If there were questions that the process was not transparent – we took them into consideration and we have maximally involved in the process representatives from IMF, the World Bank, EBRD and EU representation. So what else is questionable? The answer is simple – this is an artificial speculation in order to damage the business climate and scare off investors. I call on everyone to calm down and put an end to this stir – this is damaging to our country and not what law we will adopt. We are adopting laws for our country and we will not do anything that may damage the country,” he said.

He made the comments after the opening of a new potato chips producing factory in a Tbilisi suburb.

Garibashvili said that this GEL 4 million investment by a Tbilisi-based foreign entrepreneur is “a response to all those skeptics, critics and irresponsible people, who are claiming irresponsibly that we are damaging the business climate.”

“They themselves are damaging it and this [investment] is a clear response to all those allegations and speculation,” said the prime minister.