Financier and business advisor Nika Shurghaia has raised concerns about risks in Georgia’s real estate and banking sectors, accusing the National Bank of Georgia (NBG) of deliberately concealing problems. Speaking on TV program Analytics, Shurghaia argued that the slowdown in real estate sales and weakening demand could soon lead to solvency issues, which would inevitably spill over into the banking sector.
“The real estate sector is in crisis, it has become very difficult to sell real estate, and demand has decreased. If this continues, the next step will be problems with the solvency of the real estate sector, which will definitely affect the banks. In my view, this will not be clearly visible, since the leadership of the National Bank is interested in covering up the problems,” Shurghaia said.
He also criticized NBG President Natia Turnava, who recently attributed the growth in foreign exchange reserves to “high stability.” According to Shurghaia, such statements damage the institution’s credibility.
“The governor of the Central Bank should not become a promoter of pretending that everything is fine. This way, he loses credibility not only among informed investors and market insiders, but also among ordinary people. Losing credibility is very dangerous, because the reputation and authority of the central bank are of great importance for the country,” he added.
