The International Monetary Fund (IMF) has recommended that Georgia legally restrict the National Bank of Georgia’s (NBG) right to make discretionary financial transfers to the government. According to the NBG, this recommendation aims to strengthen the bank’s financial independence.
Currently, Article 22, Paragraph 3 of the Organic Law of Georgia allows the NBG Board to independently decide on the allocation of funds from its Reserve Fund, including the option to transfer funds to the government. While the NBG says it has never exercised this right, the IMF believes the mere possibility of such transfers could undermine the Bank's independence and financial stability, and therefore should be removed from the law.
The provision has existed since 2009, but concerns about central bank autonomy have brought renewed attention to it. The IMF's recommendation does not concern the regular profit transfers governed by Article 25, under which the NBG transferred 303 million GEL to the state budget in 2023 and 670 million GEL in 2024.
The NBG confirmed that no discretionary transfers have been made and said that, to its knowledge, work is already underway on draft legislation to address the IMF's recommendation. The NBG itself cannot initiate legal changes; this falls under the authority of Parliament or the Government.
