Natia Turnava, President of the National Bank of Georgia (NBG), stated that Georgia’s economy has remained resilient despite a highly uncertain global environment, speaking at the Capital Markets International Conference.

According to Natia Turnava, the country’s international reserves reached a historic high of 6.65 billion USD in February, marking a 57% increase compared to the previous year.

Below is the speech as delivered:

“I am pleased to welcome you to the second Capital Markets International Conference.

I would like to thank TBC Capital for bringing together such a distinguished audience from Georgia and from abroad. Events like this are important because they create a space for discussion between policymakers, issuers, investors, intermediaries, and international institutions. And that is exactly what capital-market development requires: not the effort of one institution alone, but sustained dialogue and cooperation across the entire ecosystem.

Let me begin with the broader economic context.

Over the past several years, Georgia’s economy has remained resilient despite a highly uncertain global environment. Growth has been strong (2025 year 7.5%), inflation has remained manageable, and overall macroeconomic stability has been preserved.

The external position has also remained broadly supportive, while country’s gross international reserves have further strengthened. It is worth noting that international reserves reached a historic high in February this year (6.65 bln USD), which marks 57% year-on-year growth.

Georgian financial sector remains robust, resilient, and stable, and continues to play a pivotal role in attracting foreign direct investment. The two largest banks are listed on the London Stock Exchange, including TBC Bank, further reinforcing the sector’s strong performance.

At the same time, further diversification of the financial sector—particularly through the development of capital markets—is essential to broaden financing sources and support sustainable long-term growth.

Capital market development in Georgia has accelerated significantly in recent years, with 2025 marking another year of strong and tangible progress.

By the end of 2025, the outstanding public corporate bond market had increased by 33.3% year-on-year, reaching GEL 2.7 billion. Furthermore, 2025 marked the highest issuance activity on record, with GEL 1.58 billion in new issuances during the year.

Just as importantly, the currency composition of the market became more balanced: around 66% of new issuance in 2025 was denominated in GEL, and by year-end 54% of the outstanding public corporate bond market was GEL-denominated. This is an important development not only in terms of size, but also in terms of resilience and market maturity and trust.

We also continue to see encouraging developments in market quality. A significant share of local corporate issuance comes from rated issuers (79% – of new issues in 2025), reflecting stronger investor demand for transparency and risk assessment.

Of course, we should also be realistic. Capital markets do not deepen overnight. Georgia is no exception.

That is why, from the National Bank’s perspective, our role is to help ensure that market development takes place on a sound and credible basis.

Today, we are witnessing growing interest from both the market players and international investors in the Georgian capital market, encompassing both sovereign and corporate bonds.

I would like to highlight that, last year together with the Government of Georgia, in particular ministry of finance we conducted a number of investor roadshows across different countries. The results were tangible, as investor demand during the Eurobond successful issuance exceeded the offered amount by more than 5.5 times.

Furthermore, the presence of a number of prominent investment funds at this event, as well as the series of meetings scheduled in the coming days, clearly underscores the strong and increasing interest of investors in the Georgian market.

I hope that today’s event will further facilitate the exchange of information and expertise and help unlock the market’s potential.”