Georgia's Finance Minister, Lasha Khutsishvili, explained that the state bank announced by Irakli Kobakhidze will not have the classic banking functions and will not be under the supervision of the National Bank. The minister made these comments during a joint press conference with the head of the IMF mission and the president of the National Bank of Georgia.
"Perhaps 'state bank' is not the correct definition for the structure we plan to create. This is not a structure that will function like a classical bank and will not fall under the National Bank’s supervision, as it will not have the functions that require such oversight," Khutsishvili said.
He emphasized that the planned structure would be a classic development institution, a model that many countries, both developing and developed, have, particularly in the field of external financing. Given the size of Georgia’s economy, this institution will focus entirely on domestic projects and the development of the Georgian economy.
"What we can unequivocally say is that this will not be a state bank in the classical sense and will not have functions that require the supervision of the National Bank. It will perform important functions, including the consolidation of existing roles, and introduce new elements that could be quite beneficial for promoting and developing business in the country," he added.
On February 7, Prime Minister of Georgia Irakli Kobakhidze announced that the Georgian Development Fund and the "Enterprice Georgia" agency would merge into a state bank.
