Businessman Lasha Papashvili slams the National Bank of Georgia. He said that the National Bank's misbehavior led the country to high inflation, with the monetary policy rate rising to 9%. Papashvili believes that processes are deadlocked today.
The businessman says there were wrong and exaggerated banking regulations. Today the government softens regulations but it has resulted bankruptcy of many companies.
“We said from the beginning that hasty decisions and regulations are always dangerous.
However, intervention were still more important in the National Bank’s decisions. The results came - unstoppable and inevitable inflation, which then led to increase the interest rate to 9%.
Today's processes are delayed, deadlocked. Now, we can move forward with these regulations (liberalization), but we have already missed the moment when it could be prevented.
The NBG did not have to make interventions and the regulations on overdose were a bit excessive, "said Lasha Papashvili.
