Georgia has avoided bank crisis

Former MP and Minister of Finance Professor Lado Papava thinks that in 2009 the country has managed to avoid suffering a very serious banking crisis. He thinks that the assistance the country received from abroad has rescued the banks, which covered external loans of more than USD 500 million.

President of the National Bank of Georgia Giorgi Kadagidze thinks that the crisis is coming to an end in Georgia. He states in support of this argument that in September 2009 commercial banks recorded a profit for the first time in 13 months, currency reserves reached record levels and since May 2009 client deposit numbers have increased. Moreover interest rates on loans are decreasing and there is more demand for loans.

Though Kadagidze is optimistic we should remember that globally the crisis is still with us and the risk of further deterioration of any economy still exists.