Capital market expert Marina Guledani commented on the European Commission’s report urging the National Bank of Georgia (NBG) to strengthen its independence. She noted that, while certain legislative provisions formally guarantee independence, the broader environment in which the Bank operates fundamentally undermines it.
“The European Commission’s focus on legal formalities, like the indefinite term of the First Vice-President as President or the grounds for dismissing board members, is just the surface. In reality, if we are in a country where the rule of law is weak or absent, expecting the National Bank to be truly independent is unrealistic,” Guledani said.
She emphasized that the Bank operates in a system where courts, police, and parliament are not independent, and decision-making is heavily centralized.
“The activities of the National Bank are completely opaque, and its independence is questionable because the balance of control and authority is broken from beginning to end. Even if the Bank works well internally, the governance environment prevents anyone from believing it is immune to external influence,” she explained.
Guledani further highlighted that the issue of independence has persisted for years but has worsened recently due to intensified political pressures.
“The last year and a half, amid aggravated political processes, has acted like a stress test for the Bank. It has become increasingly clear how objective its decisions are and whether it functions independently or is politically engaged. Under these conditions, the National Bank cannot be fully independent,” she concluded.
