President’s Veto on NBG Bill Sets Parliament to Convene in Special Session
At midday at a press conference the President of Georgia Giorgi Margvelashvili vetoed a highly controversial bill involving the National Bank of Georgia. The bill involves setting up a Financial Supervisory Agency which would be in charge of monitoring and supervising the banking sector and other financial institutions. These functions are currently carried out by departments of the Central Bank of Georgia.
Giorgi Abashishvili, the President’s economic advisor, said earlier that the President was expected to veto the bill. The President’s administration, who received the bill from Parliament on July 22nd, amended it in ten days, leaving the financial supervisory functions under the National Bank of Georgia.
The Bill on the NBG has become a matter of political concern for many stakeholders, citing the bill is motivated by political reasons rather than economic ones.
Head of the Georgian Central Bank, Giorgi Kadagidze, welcomed the President’s decision, saying that it “will be an opportunity for parliament members to revise their decision,” adding that the central bank had consultation with the President’s office in drafting the objections.
The President’s decision to veto means Parliament has to interrupt its summer recess and convene in a special session.