Former National Bank of Georgia President Roman Gotsiridze says the latest IMF recommendation aims to protect the central bank from political interference. Speaking to BMG, he explained that the IMF’s call to restrict discretionary financial transfers reflects ongoing concerns about the National Bank’s independence.
“The IMF clearly sees that the National Bank has become an extension of the government. Decisions are made solely by the NBG President, while the Council has no real function,” Gotsiridze noted. “The IMF is now calling for legal changes that would restore collegial governance and prevent one-man rule.”
Gotsiridze said the second key recommendation, to limit discretionary financial transfers, seeks to prevent the government from using the central bank’s profits for budget shortfalls. “The NBG earns significant income from refinancing loans to commercial banks and foreign securities, but without legal safeguards, the government could request this money at any time,” he warned.
Although the NBG has not made such transfers in the past, the IMF wants a legal ban to ensure that future transactions are not driven by political needs.
“The program with the IMF was suspended because the government failed to meet its commitments, particularly on central bank independence and state-owned enterprise reform,” Gotsiridze concluded.
