BMG presents to you the key developments in Georgia’s economy for the week of August 11–17.
“Competition Will Not Be Restricted” – National Bank on Basisbank’s Acquisition of Liberty Bank
According to the National Bank’s assessment, Basisbank’s acquisition of Liberty Bank will not have the effect of restricting competition in the market. This is stated in the decision of the NBG’s Competition Committee. "As part of reviewing the submitted notification, the National Bank defined the relevant market as the market for lending products, since in the case of both banks, the majority of their income comes from interest received on loans. In the relevant market, JSC Basisbank’s share amounted to 4.51%, while JSC Liberty Bank’s share stood at 5.6%. Accordingly, it was determined that the combined market share resulting from the concentration will amount to 10.11%,” the assessment reads.
Government Announces ₾876 Million Tender for Construction of 70,000-Seat Stadium Near Airport
The Government of Georgia has announced an international tender worth ₾876 million for the design and construction of a new stadium with a capacity of 70,000 spectators. The selected site for the stadium covers 270,615 square meters and is located on Kakheti Highway, near the turnoff to Tbilisi International Airport. Companies may submit proposals for the tender until September 29, while the construction of the new stadium must be completed within 51 months after the signing of the contract.
No Subsidies for Private Companies in 2025 Grape Harvest
The National Wine Agency has presented the subsidy model for the 2025 grape harvest. According to the agency, the state will no longer provide grape purchase subsidies to private companies, and surplus grapes will be purchased only by the state-owned “Harvest Management Company.” Just a few days ago, the National Agency of State Property under the Ministry of Economy transferred this company to the management of the National Wine Agency.
The subsidy budget for the 2025 harvest will amount to ₾50 million. Moreover, the subsidy price will differ for high-quality and damaged grapes: specifically, damaged grapes will be purchased at a price 20% lower than that of quality grapes. In the 2024 harvest, the government allocated ₾35 million in subsidies to private companies that purchased at least 100 tons of Rkatsiteli grapes at a price of ₾1 per kilogram. Those companies received a government subsidy of ₾0.20 per kilogram delivered. This subsidy model will no longer be applied in the 2025 harvest.
Upper Osiauri–Chumateliti 6.4 km Highway Section Opened
On August 16, a 6.4-kilometer, four-lane section of the East–West Highway between Upper Osiauri and Chumateliti was opened. The road includes 11 bridges and 5 tunnels.The Upper Osiauri–Chumateliti section is the continuation of the 13 km Khashuri Bypass. The new road bypasses Surami and Chumateliti and connects to the first tunnel of the Rikoti Pass highway. The construction contract for this section was signed in December 2020, with completion scheduled within four years. The project is financed by the World Bank with ₾265 million, and the contractor is the Chinese corporation Sinohydro. Initially, in 2017, the construction contract for the Upper Osiauri–Chumateliti section was signed with the company Astaldi, but after the company failed to meet its obligations, the government terminated the contract and launched a dispute.
Georgia’s Exports Fell by 11% in July
According to preliminary estimates from GeoStat, in July 2025 Georgia exported goods worth $609 million, which is 11% less compared to the same period last year.However, overall exports in January–July reached $3.8 billion, reflecting an annual increase of 8.9%. As for imports, they amounted to $1.46 billion in July, down 6.7% year-on-year, while total imports for January–July reached $10.3 billion, showing an annual growth of 10.8%. GeoStat will publish detailed foreign trade data for July on August 19, which will reveal which categories of goods saw a decline in exports.
Court of Appeals Upholds 11-Year Prison Sentence for Giorgi Bachiashvili
The Court of Appeals has upheld the ruling of Tbilisi City Court, which sentenced the former CEO of the “Co-Investment Fund,” Giorgi Bachiashvili, to 11 years in prison. On March 10, 2025, Judge Giorgi Gelashvili sentenced Bachiashvili in absentia to 11 years of imprisonment. The judge imposed a 10-year sentence for embezzlement of funds and an 11-year sentence for money laundering. The latter absorbed the 10-year sentence, leaving him with a final sentence of 11 years in prison.
