The Daily Beat: 21 September

In an interview with government mouthpiece, TV Imedi, Natia Turnava, the NBG’s Acting President, hit back at President Zurabishvili, who called for her resignation yesterday, accusing her of “exerting pressure” on the NBG Board and herself. Turnava defended the controversial decision to shield the Georgian citizens from international sanctions, claiming her actions were “in line with Georgia’s Constitution” and stressed that this move would enhance the protection of Georgian citizens.

According to the IMF official, the IMF looks forward to discussing the NBG’s recent decision over the US-sanctioned Partskhaladze, considering potential implications for Georgia’s IMF-supported program and ongoing efforts to put it back on track. “As we said earlier, quick and appropriate NBG action helped limit the impact of Russia’s war in Ukraine on the financial sector, including requiring banks to adhere to relevant sanctions. We have concerns regarding the recent announcement by the NBG to alter its approach to sanctions,” said the IMF official in written communication with Civil.ge.

President Salome Zurabishvili held meetings with the Permanent Representative of the IMF mission in Georgia and Ambassadors of the EU countries, the US, and the UK over the NBG’s involvement in the FSB-linked Partkhaladze scandal. According to the President’s office, the US sanctions and NBG were the main topics of the meetings. No further comments were made after the meetings, neither by the president’s office nor by other participants.

The parliament appointed NBG’s new Board members, Nana Keinishvili and Teimuraz Khomeriki, despite President Zurabishvili’s objection. President Salome Zurabishvili nominated these candidates last week. However, her Parliamentary Secretary declared today that the President withdrew her support for their appointment following the ongoing controversy over the NBG’s recent decision to shield US-sanctioned former Prosecutor General Otar Partshkhaladze. Opposition and experts claim that new NBG board members lack experience and are appointed due to their loyalty to the ruling party.

Documents from the Public Registry revealed that US-sanctioned Otar Partskhaladze gifted real estate and shares in a company to his son through an accelerated procedure on September 19 and 20. According to the documents of the Registry, Partskhaladze gifted to his son, Andria (Anzor) Partskhaladze, three land plots, two rooms in a hotel complex, four commercial properties, and three apartments. He also gave his son a 100% share in “GPS Consulting” LLC.

Partskhaladze-related scandals continue to take a toll not only on the NBG’s international reputation but on financial stability as well. In the last two days, the NBG sold more than USD 57 million to control the exchange rate, but despite this intervention, the GEL still depreciated. Media and experts argued that the national currency would likely have depreciated even further without that intervention. According to the Georgian Lari to US Dollar exchange rate as of 22 September, 1 USD equals 2.6879 GEL.