An issue of review of a report by the President of the National Bank in the Parliament has recently become a matter of frequent discussion. Notwithstanding the fact that the Parliament is required to hear a report of the head of the institution (the Rules of Procedure require the plenary session of the Parliament to hear reports of independent institutions), some members of the ruling coalition do not see the need to comply with this requirement. So far, there has been no reasonable and legal basis provided for non-compliance with this requirement. The issue is further aggravated by the problems related to the depreciation of Georgian Lari. Taking this into account, the negative attitude of the members of the ruling coalition towards hearing of the report of the President of the National Bank is unclear, especially considering that the MPs will have an opportunity to pose critical questions during the session. It is unfortunate that the political and personal motivations overshadow the public interest in this regard. Of course, such attitude has a negative effect on the expectations of the society.

The 2015 annual report of the National Bank presented to the Parliament, which was supposed to be discussed by the Parliament by no later than May 31, has still not been reviewed. This is especially important, taking into account that the devaluation of the national currency has further worsened worsening economic situation and the representatives of the government have been critical towards the actions taken by the National Bank. Devaluation of Georgian Lari and the negative attitude of the ruling coalition towards Giorgi Kadagidze were the basis for limiting the authority of the National Bank; whether this is constitutional, remains a question.

Kadagidze’s term as the President of the National Bank expires at the end of February. As several members of the ruling coalition have openly expressed critical views towards the work of the National Bank, it is within the interest of the Parliament that the head of the National Bank be given an opportunity to sum up what he's done, discuss the challenges the country faces and how to address them. During the hearing, the members of the coalition will have an opportunity to publicly raise the questions interesting to them. Therefore, it is recommended that the hearing takes place at a plenary session before the expiration of Kadagidze’s term.

We call upon the Parliament of Georgia to respect the Georgian legislation, to take into account the public interest and to comply with the imperative requirement of the Rules of Procedure of the Parliament and to hear the report of the National Bank of Georgia on a plenary session. Stabilization of the exchange rate of Georgian Lari should be an important interest of the state, and this process should be managed without any personal or political confrontation.

Transparency International Georgia

Economic Policy Research Center (EPRC)

Georgia’s Reforms Associates (GRASS)

Society and Banks

Georgian Farmers Association

Civil Development Agency (CiDA)