The International Monetary Fund (IMF) has concerns over the decision made by Georgian National Bank (NBG) to change its approach on international financial sanctions. The mission head for Georgia James John told bm.ge in a written statement that the IMF will have discussions with NBG and commercial banks on this issue.
“As we said earlier, quick and appropriate NBG action helped limit the impact of Russia’ war in Ukraine on the financial sector, including by requiring banks to adhere to relevant sanctions. We have concerns regarding the recent announcement by the NBG to alter its approach to sanctions. We look forward to discussing these with the NBG and private banks, and can then make a fuller assessment, including to consider potential implications for Georgia’s IMF-supported program and our ongoing efforts to put it back on-track",- James John said.
The National Bank issued an exemption rule for the enforcement of international financial sanctions on Sep 19, 2023. According to the new rule, international sanctions apply on Georgian citizens only if the Georgian courts make such a decision. On September 20 the interim governor of NBG Natia Turnava made a statement that this new rule is not tailored to specific persons, including the former General Prosecutor of Georgia Mr. Otar Partskhaladze who was sanctioned by the US on September 14. Yesterday in protest to Turnava’s decision three vice-governors of NBG resigned.
