On the National Bank of Georgia

Organic Law of Georgia

On the National Bank of Georgia

Article 1. National Bank of Georgia🔗

1. The National Bank of Georgia (hereinafter – the National Bank) is the central bank of Georgia, the bank of banks, the banker and fiscal agent of the Government of Georgia. It is a legal entity of public law. In its activities the National Bank is guided by the Constitution of Georgia, this Organic Law, the legislation of Georgia, and relies on the rules and practices accepted in international banking practice. It has the right to independently conclude contracts, to independently acquire immovable and movable property and to own and dispose of it, to act as claimant and defendant, and to independently perform the functions assigned to it.

2. (Removed).

3. The National Bank is founded by the supreme representative body of Georgia.

4. The location of the National Bank is the city of Tbilisi.

Organic Law of Georgia of 23 March 2010 No. 2828 - LHG I, No. 19, 13.04.2010, Art. 102

Article 2. Definition of terms🔗

The terms used in this Law have the following meaning:

a) representative of the financial sector – a commercial bank, microbank, non-bank deposit institution, brokerage company, independent securities registrar, central depositary, specialized depositary, stock exchange, investment fund, asset management company, microfinance organization, payment system operator, payment service provider, accountable enterprise, currency exchange point;

[ a) representative of the financial sector – a commercial bank, microbank, non-bank deposit institution, brokerage company, independent securities registrar, central depositary, specialized depositary, stock exchange, investment fund, asset management company, microfinance organization, payment system operator, payment service provider, accountable enterprise, currency exchange point, securitization special purpose entity, factoring company, factoring platform; (shall enter into force from 1 January 2027)]

b) financial sector – the aggregate of representatives of the financial sector;

c) commercial bank – a legal entity licensed by the National Bank that accepts deposits and, using them, carries out in its own name banking activity defined by the legislation of Georgia;

c¹) microbank − a legal entity established in the legal form of a joint-stock company, which is licensed by the National Bank and carries out banking activity provided for by the Law of Georgia "On the Activities of Microbanks";

d) inflation target indicator – the inflation rate to be achieved by the National Bank;

e) official exchange rate – the exchange rate established by the National Bank against various currencies, which is used for accounting and other official purposes;

f) state loan – the state debt of Georgia and state guarantees of Georgia issued for credits, as defined by the Law of Georgia "On State Debt";

g) deposit – monetary funds or other means of payment contributed by a person to a commercial bank, microbank or non-bank deposit institution, ownership of which is acquired by the commercial bank, microbank or non-bank deposit institution. Funds received in exchange for electronic money are not a deposit;

h) currency – banknotes and coins issued by the National Bank and issuing institutions of other countries in the form of legal tender;

i) counterfeit currency – banknotes and coins produced by fraudulent, unlawful means, as well as falsified currency on which traces of alteration of the denomination are observed;

j) issue – putting into circulation of GEL banknotes and coins or securities;

k) reproduction – production of any image, in material or non-material form, of banknotes and coins issued by the National Bank of Georgia, in whole or in part, including their individual design elements, colour, dimensions, symbols, or with their alteration, which may resemble genuine currency or create the impression of genuine currency;

l) numismatic value – lari banknotes and coins reproduced by the National Bank of Georgia intended for sale or as exhibits, as well as those banknotes and coins that have been withdrawn from circulation or whose issue was not carried out due to non-compliant characteristics, as well as historical banknotes and coins, their copies;

m) credit – any obligation related to the provision of funds on the principles of repayment, payment, security and maturity;

n) clearing – clearing as defined by the Law of Georgia “On Payment Systems and Payment Services”;

o) (repealed – 20.12.2019, No. 5687);

p) (repealed – 20.12.2019, No. 5687);

q) (repealed – 20.12.2019, No. 5687);

r) fiscal agent – a person supporting the implementation of the State's fiscal policy by organizing the payment system and circulation of securities, who represents the State in relations with central banks of other countries and international financial organizations;

s) administrative and capital expenses – all expenses except those directly related to the implementation of monetary and foreign exchange policy and to providing the economy with cash;

t) statistics of the financial sector of Georgia – statistics reflecting stocks and flows of financial assets and liabilities of the national economy, as well as financial and non-financial assets and liabilities of financial corporations;

u) person – a natural or legal person, as well as an organizational formation provided for by Georgian legislation that is not a legal person;

v) non-bank deposit institution – a legal person that is not a commercial bank or microbank and is authorized to accept deposits and, using them, carry out in its own name part of the banking activity provided for by Georgian legislation;

v¹) (repealed – 23.12.2018, No. 1894);

w) temporary bank – a temporary commercial bank directly or indirectly established by the Ministry of Finance of Georgia and licensed by the National Bank of Georgia, which is created for the purpose of transferring, in whole or in part, the shares, assets, liabilities and/or critical functions of a commercial bank under resolution regime, in order to achieve the resolution objectives defined by Article 55¹ of this Law;

w¹) Resolution – introduction by the National Bank, within the framework of the resolution mandate, of a resolution regime in respect of a commercial bank and exercise of the resolution powers and application of the resolution instruments provided by this Law and the Law of Georgia “On Commercial Banks’ Activities” to achieve the resolution objectives provided by Article 55¹ of this Law;

x) Control – direct or indirect, individually or together with others, exercise of strong influence through the use of voting shares (interest, share) or in another way;

y) Controlling person – a person exercising control;

z) Family member – the spouse, minor child and stepchild of a person, as well as a person permanently residing with him/her;

aa) Close relative – a person having a kinship relationship who, in accordance with the Civil Code of Georgia, is included in the first or second order of heirs at law;

bb) Public register – the departmental public register of the National Bank, in which the recording and systematization of legal acts of the National Bank are carried out;

cc) External sector statistics – statistics of the balance of payments, international investment position, external debt and official international reserves;

dd) Inflation – change in the consumer basket price index published by the official body producing price statistics;

ee) Reserve money – cash issued by the National Bank (excluding the balance of funds in the National Bank’s cash desk), funds in national currency held in accounts of a commercial bank or microbank (including a commercial bank or microbank whose license has been revoked) with the National Bank;

ff) Free industrial zone – a zone created in accordance with the Law of Georgia “On Free Industrial Zones”;

gg) Free trade point – a customs control zone for whose activity a permit issued by the Revenue Service is mandatory and where any goods may be sold without application of tariff measures, except goods whose import into Georgia, export from Georgia or sale on the territory of Georgia is prohibited;

gg¹) Banking group – the aggregate of members of a group consisting of legal entities that are a commercial bank, microbank, their parent enterprise(s), subsidiaries, associates and joint ventures of the commercial bank, microbank and their parent enterprise(s), both within the country and outside its borders, and at the same time are financial institutions and/or legal entities engaged in activities related to banking and/or bank holding companies;

gg²) Bank holding company – a legal entity that directly or indirectly owns more than 50% of the shares/interest of a commercial bank and/or microbank or controls a commercial bank, microbank;

gg³) Associate enterprise – an enterprise over which an investor exercises significant influence, which implies the right to participate in making decisions related to the financial and operating policies of the enterprise. An associate enterprise also includes subsidiaries of the associate enterprise;

gg⁴) consolidated supervision – the supervision process which, for the purpose of promoting the stability of the banking sector and the process of supervision of a commercial bank/commercial banks, a microbank/microbanks included in a banking group, implies the imposition of supervisory requirements on any member of the banking group individually and/or together (jointly) with other members of the banking group and the exercise of supervisory powers/actions;

gg⁵) credit information bureau – an entrepreneurial entity which collects, stores, processes and issues credit information about a person;

gg⁶) administrator – a member of the supervisory board, a member of the directorate and/or another person of a commercial bank, microbank, microfinance organisation who directly or indirectly has the authority and responsibility to plan, manage and/or control the activities of the commercial bank/microbank/microfinance organisation (the list of the respective positions of the said persons shall be approved by the supervisory board of the commercial bank/microbank/microfinance organisation); in the case of another representative of the financial sector − a member of the supervisory board, a member of the directorate, as well as a person who is authorised to assume obligations on behalf of the representative of the financial sector independently or together with one or several persons;

gg

7) lending entity – any person or group of interconnected persons in respect of whom more than 20 natural persons (including an individual entrepreneur) simultaneously have a loan/credit obligation;

gg⁸) joint venture – an enterprise in which the parties having joint control have access to the net assets of the activity. A joint venture also includes subsidiaries of the joint venture. For the purposes of this subparagraph, joint control means joint control provided for by the relevant contract, which exists only where decision-making in relation to the relevant activity requires the unanimous consent of the jointly controlling parties.

gg⁹) group of interconnected persons − a group of persons who hold, in relation to one another and/or in one another's enterprises, 50% or more than 50% of shares/interest, and/or hold one another's parent enterprises (parent organisations) and/or their subsidiaries and/or affiliated enterprises and/or joint ventures, and/or who are one another's first-degree and second-degree legal successors.

gg¹⁰) pension fund − the Legal Entity of Public Law provided for by the Law of Georgia "On Accumulative Pension" − the Pension Fund of Georgia;

gg¹¹) virtual asset − a digital expression of value which is fungible and is not unique, constitutes an object of transfer or trade in digital form and is used for the purpose of investing and/or making payments. A virtual asset does not include the digital expression of cash, securities and other financial instruments;

gg¹²) convertible virtual asset − a virtual asset that has an equivalent value on the market in national or foreign currency, in another virtual asset and/or in a financial instrument, into which its exchange may be effected;

gg¹³) virtual asset service − mutual exchange of a convertible virtual asset (including through a self-service kiosk) into national or foreign currency, another virtual asset or a financial instrument, transfer and/or storage/administration of a convertible virtual asset or of an instrument necessary for its use, which enables control over the virtual asset, management of a portfolio consisting of convertible virtual assets (except collective portfolio management) and/or administration of a trading platform for convertible virtual assets and/or lending of such virtual asset and/or initial offering and/or a service related to the initial offering, as well as virtual asset service defined by a respective normative act of the National Bank;

gg¹⁴) virtual asset service provider − a person who provides virtual asset service for the benefit of another person;

gg¹⁵) financial conglomerate − a financial conglomerate as defined by the Law of Georgia "On Additional Supervision of Regulated Entities Belonging to a Financial Conglomerate";

[ gg¹⁶) factoring company − a factoring company as defined by the Law of Georgia "On Factoring";

gg¹⁷) factoring platform − a factoring platform as defined by the Law of Georgia "On Factoring". (shall enter into force from 1 January 2027)]

Organic Law of Georgia No. 3702 of 12 October 2010 - LHG I, No. 56, 20.10.2010, Art. 363

Organic Law of Georgia No. 5001 of 1 July 2011 - website, 15.07.2011

Organic Law of Georgia No. 5946 of 27 March 2012 – website, 12.04.2012

Organic Law of Georgia No. 6320 of 25 May 2012 – website, 12.06.2012

Organic Law of Georgia No. 6305 of 25 May 2012 – website, 12.06.2012

Organic Law of Georgia No. 353 of 20 March 2013 - website, 04.04.2013

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22.03.2017

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Organic Law of Georgia No. 3264 of 21 July 2018 – website, 06.08.2018

Organic Law of Georgia No. 3320 of 21 July 2018 – website, 07.08.2018

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 5687 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 6816 of 14 July 2020 – website, 22.07.2020

Organic Law of Georgia No. 1790 of 9 September 2022 – website, 23.09.2022

Organic Law of Georgia No. 1799 of 9 September 2022 – website, 23.09.2022

Law of Georgia of 9 September 2022 No. 1810 – website, 23.09.2022

Law of Georgia of 22 February 2023 No. 2627 – website, 10.03.2023

Law of Georgia of 28 June 2023 No. 3354 – website, 18.07.2023

Law of Georgia of 29 November 2023 No. 3773 – website, 19.12.2023

Law of Georgia of 15 December 2023 No. 3944 – website, 27.12.2023

Law of Georgia of 27 June 2024 No. 4326 – website, 12.07.2024

Law of Georgia of 9 December 2025 No. 1141 – website, 12.12.2025

Law of Georgia of 1 April 2026 No. 1465 – website, 06.04.2026

Article 3. Tasks and functions of the National Bank🔗

1. The main task of the National Bank is to ensure price stability.

2. The National Bank shall ensure the stability and transparency of the financial system and shall promote sustainable economic growth in the country, if this is possible without endangering the performance of its main task.

3. The functions of the National Bank are:

a) to develop and implement monetary and foreign exchange policy in accordance with the main directions determined by the Parliament of Georgia;

b) to carry out supervision of the financial sector;

c) to ensure the functioning of the monetary system;

d) to hold, keep and manage official international reserves;

e) to be the banker and fiscal agent of the Government of Georgia;

f) to promote the safe, sustainable and efficient functioning of the payment system;

g) to carry out the issue of the currency of Georgia;

h) to produce and disseminate statistics of the financial and external sectors of the country in accordance with international standards and methodologies;

i) (removed – 29.05.2014, No. 2465).

i¹) to carry out the resolution of a commercial bank;

i²) to participate in preparation for crisis situations and in crisis management;

j) to perform other functions determined by this Organic Law.

Law of Georgia of 25 May 2012 No. 6305 – website, 12.06.2012

Law of Georgia of 29 May 2014 No. 2465 – website, 02.06.2014

Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015

Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017

Law of Georgia of 20 December 2019 No. 5654 – website, 31.12.2019

Article 4. Independence of the National Bank🔗

1. The National Bank is independent in its activities. Legislative, executive and other bodies shall not have the right to interfere in its activities or to exercise monitoring, except in the cases provided for by the Constitution of Georgia and this Organic Law.

2. The National Bank is economically independent and covers all expenses from its own funds. The National Bank shall not be liable for the obligations of the State of Georgia. The State of Georgia shall not be liable for the obligations of the National Bank, except in the cases provided for by this Organic Law.

3. The National Bank, its assets, property and income, as well as the activities and operations carried out by it, shall be exempt from any state tax, state levy, fee and state duty.

Organic Law of Georgia No. 2828 of 23 March 2010 – LHG I, No. 19, 13.04.2010, Art. 102

Organic Law of Georgia No. 5001 of 1 July 2011 – website, 15.07.2011

Organic Law of Georgia No. 6017 of 10 April 2012 – website, 30.04.2012

Article 5. International cooperation🔗

1. Within the scope of its competence, the National Bank represents Georgia at international conferences, in all councils and organisations.

2. Within the scope of its competence, the National Bank cooperates with the bodies of other countries that have functions similar to the functions of the National Bank. Such cooperation may include coordination of measures related to supervision and resolution, as well as exchange of information (including confidential information), provided that the parties maintain the confidentiality of the information received.

2¹. Where the grounds for resolution exist, the National Bank may exercise resolution powers for the purpose of facilitating resolution or an equivalent process carried out by the corresponding body of another country. In the case provided for by this paragraph, the National Bank shall not exercise resolution powers if their exercise may pose a threat to financial stability, the fiscal system, the public interest and/or if, in the event of their exercise, proportionate protection of the interests of creditors of a commercial bank is not ensured.

3. The National Bank shall have the right to provide banking services to the government of another country, a central bank and monetary and credit bodies, as well as to an international organisation of which the National Bank itself or Georgia is a member.

4. As a representative of Georgia, the National Bank shall have the right to assume obligations and to conduct operations related to Georgia's participation in the work of international organisations.

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Article 6. Organisation of the National Bank🔗

1. The National Bank is a unified, centralised system.

2. The National Bank, on the basis of this Law, shall determine the rules for the establishment, functioning and abolition of structural units.

Organic Law of Georgia of 29 May 2014 No. 2465 - website, 02.06.2014.

Organic Law of Georgia of 3 September 2015 No. 4188 - website, 10.09.2015.

Organic Law of Georgia of 10 March 2017 No. 436 - website, 22.03.2017.

Article 7. Governance of the National Bank🔗

1. The supreme body of the National Bank shall be the Board of the National Bank, which consists of 9 members. If the number of members of the Board of the National Bank is less than 5, the Board of the National Bank shall not be authorised to perform its functions. In this case, the vacancy shall be filled no later than 2 months from the occurrence of this fact.

2. Members of the Board of the National Bank shall be citizens of Georgia or of a foreign country, professionals in economics, finance or another relevant field, and distinguished by integrity. The number of professionals from another relevant field (except economics and finance) in the composition of the Board of the National Bank shall not exceed two.

2¹. A person who has been convicted of a grave or especially grave crime (including for the financing of terrorism and/or the legalisation of illegal income) or another economic crime may not be a member of the Board of the National Bank.

3. The Chairperson of the Board of the National Bank shall be the President of the National Bank. The Board of the National Bank shall include, in addition to the Chairperson of the Board, the First Vice President of the National Bank, 2 Vice Presidents and other members of the Board.

4. Members of the Board of the National Bank shall be elected by the Parliament of Georgia on the nomination of the President of Georgia for a term of 7 years, in accordance with the procedure established by the Rules of Procedure of the Parliament of Georgia.

5. Removal of a member of the Board of the National Bank from office may be effected only in accordance with Article 48 of the Constitution of Georgia, by a decision of the Parliament of Georgia.

6. Re-election of a member of the Board of the National Bank shall be permissible. In the event of early termination of the powers of a member of the Board of the National Bank, a new member shall be elected in his or her place for the full term of the powers of a member of the Board of the National Bank.

7. The President of Georgia shall appoint and dismiss the President of the National Bank to and from office from among the members of the Board of the National Bank, on the nomination of the Board of the National Bank. The Board of the National Bank shall appoint and dismiss the Vice Presidents of the National Bank to and from office on the nomination of the President of the National Bank, and in the case provided for by paragraph 8 of this Article, on the nomination of at least 2 members of the Board of the National Bank.

8. The President of the National Bank shall be dismissed from office if:

a) he or she is no longer a member of the Board of the National Bank;

b) he or she has lost the right to hold the office of a member of the Board of the National Bank in accordance with Article 13 of this Organic Law;

c) he or she is unable to perform his or her duties due to health condition;

d) he or she has died.

9. The Vice Presidents of the National Bank shall be dismissed from office in the manner specified in paragraph 8 of this Article.

10. A member of the Board of the National Bank, except for the President and Vice Presidents of the National Bank, is not a public servant.

Organic Law of Georgia No. 6017 of 10 April 2012 – website, 30.04.2012

Organic Law of Georgia No. 3359 of 20 March 2015 – website, 31.03.2015

Organic Law of Georgia No. 101 of 16 December 2016 – website, 20.12.2016

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018.

Organic Law of Georgia No. 3380 of 5 September 2018 – website, 21.09.2018.

Organic Law of Georgia No. 3904 of 6 December 2018 – website, 14.12.2018.

Organic Law of Georgia No. 6492 of 25 June 2020 – website, 02.07.2020.

Organic Law of Georgia No. 3114 of 13 June 2023 – website, 20.06.2023.

Article 8. Board of the National Bank🔗

The Board of the National Bank shall exercise supreme management and supervision over the activities of the National Bank.

Article 9. Powers of the Board of the National Bank🔗

The Board of the National Bank shall be entitled to:

a) consider and approve the basic principles of management and disposal of international reserves;

b) establish the rules for determining the official exchange rate of the national currency against the currencies of other countries;

c) approve the budget of administrative and capital expenditures of the National Bank;

d) create special-purpose reserves;

e) consider, approve and submit to the Parliament of Georgia the annual report on the activities of the National Bank and the financial statements;

f) issue legal acts;

g) (removed - 03.09.2015, No. 4188);

g¹) determine the main directions of supervision and regulation of the activities of the financial sector;

h) approve the organisational structure and the statute of the National Bank;

h¹) appoint the members of the commission for the consideration of disputes in the field of the payment system and payment services existing at the National Bank, including the chairperson of the commission, and determine matters related to the activities of this commission;

i) perform other functions determined by this Organic Law.

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10.09.2015.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22.03.2017.

Organic Law of Georgia No. 1810 of 9 September 2022 – website, 23.09.2022.

Article 10. Determination of the amount of the additional remuneration of a member of the Board of the National Bank🔗

The amount of the additional remuneration of a member of the Board of the National Bank may not be less than the average salary existing at the National Bank. The amount of the additional remuneration of a member of the Board of the National Bank shall be determined by the Board of the National Bank.

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10.09.2015.

Organic Law of Georgia No. 101 of 16 December 2016 - website, 20.12.2016.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22.03.2017.

Organic Law of Georgia No. 1141 of 9 December 2025 - website, 12.12.2025.

Article 11. Resignation of a member of the Board of the National Bank🔗

1. A member of the Board of the National Bank may resign from office if he/she applies with a written statement to that effect to the Chairperson of the Parliament of Georgia not later than 2 months before the resignation.

2. A member of the Board of the National Bank shall be considered to have resigned from office as of the date indicated in the statement.

Article 12. Meeting of the Board of the National Bank of Georgia🔗

1. The meeting of the Board of the National Bank of Georgia shall be chaired by the President of the National Bank of Georgia, and in his/her absence – by the person performing the duties of the President.

2. The meeting of the Board of the National Bank of Georgia shall, as a rule, be convened by the President of the National Bank of Georgia or the person performing his/her duties. A meeting may also be convened at any time on the basis of a written request of two members of the Board of the National Bank of Georgia.

3. Each member of the Board of the National Bank of Georgia shall have one vote. A meeting shall be authorized if it is attended by more than half of the members of the Board of the National Bank of Georgia, one of whom must be the President of the National Bank of Georgia himself/herself or the person performing his/her duties.

4. A decision of the Board of the National Bank of Georgia shall be adopted by a simple majority of the votes of the members present at the meeting of the Board of the National Bank of Georgia. Only a member participating in the meeting shall have the right to vote. In case of equal division of votes, the vote of the President of the National Bank of Georgia shall be decisive, and in his/her absence – the vote of the person performing the duties of the President of the National Bank of Georgia.

5. The rules and procedures for holding a meeting of the Board of the National Bank of Georgia shall be determined by the Board of the National Bank of Georgia.

6. A meeting of the Board of the National Bank of Georgia shall be held at least once a quarter.

7. A meeting of the Board of the National Bank of Georgia may also be held by means of electronic communication.

8. The Board of the National Bank of Georgia may adopt a decision on declaring the meeting closed.

Article 13. Conflict of interest of a member of the Board of the National Bank of Georgia🔗

1. A member of the Board of the National Bank of Georgia (except for the President and Vice-Presidents of the National Bank of Georgia) may not simultaneously be a state servant, a state-political official, a political official, a public servant, a head of a legal entity, an employee of a representative of the financial sector of Georgia or of a legal entity related thereto.

2. The President and Vice-Presidents of the National Bank of Georgia shall be state servants.

3. A member of the Board of the National Bank of Georgia and his/her family members shall not have the right to be a partner of a representative of the financial sector of Georgia or of a legal entity related thereto.

Organic Law of Georgia No. 4387 of 27 October 2015 – website, 11.11.2015

Organic Law of Georgia No. 166 of 21 December 2016 – website, 28.12.2016

Article 14. Subsequent service of a member of the Board of the National Bank of Georgia🔗

1. In the event of expiration of the term of membership of the Board of the National Bank of Georgia or dismissal from membership of the Board of the National Bank of Georgia, the President and Vice-Presidents of the National Bank of Georgia shall be prohibited from working in the financial sector of Georgia for 6 months.

2. In the event of expiration of the term of membership of the Board of the National Bank of Georgia or dismissal from membership of the Board of the National Bank of Georgia, the President and Vice-Presidents of the National Bank of Georgia shall retain their existing official salaries for 6 months.

Article 15. Powers of the President of the National Bank🔗

1. The President of the National Bank:

a) manages the activities of the National Bank;

b) represents the National Bank in relations with third parties;

c) appoints and dismisses employees of the National Bank;

d) distributes functions between the President and the Vice-Presidents of the National Bank, as well as among civil servants of the National Bank;

e) is entitled to attend a sitting of the Government of Georgia without the right to vote;

f) determines the staffing list of the National Bank and the amount of official salaries of employees, as well as the amount of all types of additional benefits;

f¹) determines the uniform rule of proceedings in the National Bank;

g) issues legal acts;

g¹) determines the amount of additional benefit for the purpose of partial reimbursement of life and health insurance of a member of the Board of the National Bank;

h) creates deliberative and consultative bodies (committee, commission);

h¹) (removed - 10.03.2017, No. 436);

i) performs other functions determined by this Organic Law.

2. In the event of the absence of the President of the National Bank, his duties shall be performed by the First Vice-President, and in the event of the impossibility of exercising powers by the latter, the Board of the National Bank shall entrust the performance of the duties of the President of the National Bank to one of the Vice-Presidents.

Organic Law of Georgia No. 5001 of 1 July 2011 - website, 15.07.2011.

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10.09.2015.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22.03.2017.

Organic Law of Georgia No. 4498 of 17 April 2019 – website, 24.04.2019.

Organic Law of Georgia No. 3114 of 13 June 2023 – website, 20.06.2023.

Article 15¹. Personnel Authority🔗

1. Only the National Bank shall be entitled to:

a) establish basic, special and additional qualification requirements for the employment of a person at the National Bank; select and appoint a person for appointment at the National Bank; promote and transfer him/her; determine, on the basis of a personal application of a person employed at the National Bank, in the case of dismissal, the period of prior notification to the National Bank of not more than 30 working days;

b) determine the procedure for sending an employee of the National Bank on a business trip, the procedure for reimbursing the expenses of his/her official business trip and the amount of compensation within the norms existing in the public service;

c) establish general rules of ethics and conduct at the National Bank.

2. The procedure and conditions for holding a competition for employment at the National Bank, and the procedure for establishing and operating the competition commission shall be determined by a legal act of the National Bank.

3. The procedure for promotion, improvement of professional skills and qualifications, encouragement, bonus payment, transfer and dismissal on the basis of a personal application of a person employed at the National Bank shall be determined by a legal act of the National Bank.

4. Legal acts on the matters provided for by this Article shall be issued by the President of the National Bank.

Organic Law of Georgia No. 4498 of 17 April 2019 – website, 24.04.2019

Article 16. (Removed)🔗

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Article 16¹. Committee for Financial Sector Supervision of the National Bank🔗

1. The President of the National Bank shall, by order, create the Committee for Financial Sector Supervision of the National Bank. The members of the Financial Sector Supervision Committee are the President of the National Bank, the respective Vice-President, and the heads of the respective structural units of the National Bank. By decision of the President of the National Bank, the members of the Financial Sector Supervision Committee may be other employees of the National Bank and invited persons.

2. The function of the Financial Sector Supervision Committee is the development and implementation of the policy of supervision and regulation of the activity of the financial sector.

3. The Financial Sector Supervision Committee is entitled to:

a) consider and develop legal acts related to the regulation of financial supervision;

b) consider the comments of representatives of the financial sector on the measures carried out by the respective structural units of the National Bank;

c) consider specific cases falling within the sphere of financial sector supervision and adopt the respective decision;

d) request from the structural units of the National Bank and receive, within the established time limit, information on matters related to the sphere of activity of the Financial Sector Supervision Committee.

4. The decision of the Financial Sector Supervision Committee shall be provided in the form of a recommendation to the President of the National Bank, and on the basis of the President's final decision, the National Bank shall issue legal acts.

Organic Law of Georgia of 10 March 2017 No. 436 – website, 22 March 2017.

Organic Law of Georgia of 20 December 2019 No. 5654 – website, 31 December 2019.

Article 16². Resolution Committee of the National Bank🔗

1. The Resolution Committee of the National Bank (hereinafter – the Resolution Committee) is established by an Order of the President of the National Bank. The composition of the Resolution Committee includes the President of the National Bank and the Vice Presidents of the National Bank. By a decision of the Resolution Committee, the composition of the Resolution Committee may also include the heads of the relevant structural units of the National Bank. At the same time, other employees of the National Bank and/or invited persons may attend a meeting of the Resolution Committee if their attendance is necessary for making an informed decision on the relevant matter. In the process of decision-making by the Resolution Committee, only the President of the National Bank and the Vice Presidents of the National Bank have the right to vote. The President of the National Bank chairs the Resolution Committee. The composition and rules of procedure of the Resolution Committee shall be determined by a legal act of the President of the National Bank.

2. The Resolution Committee approves resolution plans developed by the National Bank, adopts decisions on the introduction of a resolution regime with respect to a commercial bank, as well as on the exercise, with respect to a commercial bank under a resolution regime, of the resolution powers determined by this Law and the Law of Georgia “On the Activities of Commercial Banks”, for which purpose legal acts of the President of the National Bank shall be issued.

3. The Resolution Committee shall submit to the Board of the National Bank, once a year and/or at the request of the Board of the National Bank, a report on the decisions adopted in connection with resolution, the resolution powers exercised, and the current situation.

4. The National Bank shall ensure the operational independence of resolution functions from supervisory functions and other functions, including in terms of organizational arrangement, in order to prevent conflicts of interest.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019.

Article 17. Monetary Policy Committee of the National Bank🔗

1. The President of the National Bank shall establish the Monetary Policy Committee of the National Bank by order. The members of the Monetary Policy Committee are the President of the National Bank, all Vice Presidents and the heads of the respective structural units of the National Bank. By decision of the President of the National Bank, the members of the Monetary Policy Committee may be other employees of the National Bank and invited persons.

2. The function of the Monetary Policy Committee is the elaboration and implementation of monetary-credit and foreign exchange policy.

3. The Monetary Policy Committee is entitled to:

a) elaborate the monetary-credit and foreign exchange policy of the country;

b) determine the rules for open market and other monetary-credit and foreign exchange operations, the issuance and circulation of its own securities, the calculation of and compliance with minimum reserve requirements;

c) set interest rates on the National Bank's loan, deposit and other monetary-credit operations, except for the lender of last resort loan;

d) (removed - 03.09.2015, No. 4188);

d¹) determine the norms of minimum reserve requirements;

e) perform other functions related to monetary and foreign exchange policy.

4. The decision of the Monetary Policy Committee on monetary policy shall be based on maintaining the inflation target in the medium term and shall not be decisive for the achievement of such short-term goals that may have a negative impact on price stability in the medium term.

5. The decision of the Monetary Policy Committee is provided in the form of a recommendation to the President of the National Bank, and on the basis of the President's final decision, the National Bank issues legal acts.

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10.09.2015.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22.03.2017.

Organic Law of Georgia No. 6492 of 25 June 2020 – website, 02.07.2020.

Organic Law of Georgia No. 3114 of 13 June 2023 – website, 20.06.2023.

Article 17¹. Audit Committee under the Board of the National Bank🔗

1. The Audit Committee under the Board of the National Bank shall consist of 3 non-executive members of the Board of the National Bank. A member of the Audit Committee shall be elected for the term of office of a member of the Board of the National Bank.

2. The Board of the National Bank shall approve the composition of the Audit Committee and the Chairperson of the Audit Committee.

3. Within the scope of powers delegated by the Board of the National Bank, the Audit Committee shall review and supervise matters related to the financial reporting of the National Bank, risk management, the internal control system, internal audit activity and audit services.

4. The activities of the Audit Committee shall be determined by the Regulation of the Audit Committee under the Board of the National Bank of Georgia, which shall be approved by the Board of the National Bank.

Organic Law of Georgia of 23 December 2017 No. 1894 – website, 11 January 2018.

Organic Law of Georgia of 22 February 2023 No. 2627 – website, 10 March 2023.

Article 18. Internal Audit Service of the National Bank🔗

1. The head of the Internal Audit Service of the National Bank shall be appointed to and dismissed from office by the Board of the National Bank by a majority of the votes of the members participating in the meeting. The head of the Internal Audit Service of the National Bank shall be appointed for a term of 7 years. He/she may also be appointed for a repeated term.

2. The head of the Internal Audit Service of the National Bank shall be a citizen of Georgia, a professional in the field of economics and/or finance and/or banking, and of outstanding integrity.

3. The head of the Internal Audit Service of the National Bank may not be a person who has been convicted of a grave or especially grave crime (including the financing of terrorism and/or the legalisation of illegal income) or of another economic crime.

4. The head of the Internal Audit Service of the National Bank shall be dismissed from office if:

a) his/her 7-year term of authority has expired;

b) he/she has resigned from office on the basis of a personal application. He/she shall notify the President of the National Bank thereof 1 month before resigning;

c) a conflict of interest provided for by Article 20 of this Law has arisen for him/her;

d) he/she has died.

5. The head of the Internal Audit Service of the National Bank may also be dismissed from office if, due to his/her state of health, he/she was unable to exercise his/her authority for 4 consecutive months.

6. The head of the Internal Audit Service of the National Bank shall be accountable to the Board of the National Bank and to the Audit Committee under the Board of the National Bank.

7. The functions of the Internal Audit Service of the National Bank are:

a) to conduct a periodic audit of the internal control systems and operations of the National Bank;

b) to prepare a report on the activities carried out and to develop recommendations on budgetary and accounting procedures and internal control systems, for the purpose of submitting a report to the Board of the National Bank;

c) to conduct an audit review of the periodic financial statements of the National Bank and the documents related thereto.

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Article 18¹. (removed)🔗

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Article 19. Remuneration of the labour of the personnel of the National Bank🔗

1. The amount of remuneration of the labour of civil servants of the National Bank shall correspond to the level of remuneration of labour existing in the banking system of Georgia. The amount of remuneration of the labour of non-staff servants shall be determined on the basis of a contract.

1¹. (removed – 10.03.2017, No. 436).

2. The amount of official salaries, supplements and other payments to be remunerated by the National Bank shall not be linked to the net income of the National Bank.

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Article 20. Professional secrecy and conflict of interest🔗

1. Current and former members of the Council of the National Bank, an employee and an auditor of the National Bank shall not have the right to permit an unauthorized person to access confidential information, or the right to disclose, disseminate or use such information for personal benefit.

2. (Deleted – 29 May 2014, No. 2465).

3. Information on accounts and/or operations of natural and legal persons, as well as information on third persons, may be issued only on the basis of a court judgment, except in the case provided for by the Law of Georgia "On the Deposit Insurance System" for the provision of information to a legal entity of public law – the Deposit Insurance Agency, for the provision of information to the supervisory body within the framework of the Law of Georgia "On Additional Supervision of Regulated Enterprises Included in a Financial Conglomerate", and in the cases provided for by this Law.

4. The information provided for by paragraph 3 of this Article shall be issued in respect of persons who are authorized to enforce acts subject to enforcement under the Law of Georgia "On Enforcement Proceedings", in the process of their enforcement.

4¹. Information defined by the Law of Georgia "On Official Statistics" shall be issued to a legal entity of public law – the National Statistics Office of Georgia – only within the scope defined by the same Law and in accordance with the procedure established by the legislation of Georgia.

5. Any information held by the National Bank, proceeding from the objectives of monetary policy, statistical and/or financial sector stability, may be declared confidential by a decision of the Council of the National Bank for a certain, reasonable period. The list of such information, the period of restriction and the procedure for issuing information shall be determined by the Council of the National Bank.

5¹. (Deleted – 10 March 2017, No. 436).

5². (Deleted – 10 March 2017, No. 436).

6. The President of the National Bank, the Vice-President of the National Bank and an employee of that structural unit of the National Bank which, on the basis of this Law, carries out supervision or resolution or liquidation of the financial sector shall not have the right to be employees of a representative of the financial sector or of a legal entity related to it, direct or indirect holders of a share, or members of the supervisory board or directorate. An employee of a structural unit of the National Bank may be appointed as a temporary administrator, liquidator or special manager, and also as the administrator of a program defined by the Law of Georgia on Mortgage Covered Bonds or as the liquidator of such a program. If a family member or close relative of an employee of that structural unit of the National Bank which, on the basis of this Law, exercises supervisory authority or resolution powers over the financial sector is the holder of more than 10 percent of a share of a person subject to supervision or regulation by the National Bank or of another person related to it, or is a member of the supervisory board or directorate, he/she shall submit a written application to the National Bank on this matter in accordance with the procedure established by it. He/she also shall not have the right to participate in the decision-making on a matter related to such a person. An employee of the National Bank may not be assigned the supervision or resolution of a person whose shareholder or member of the supervisory board or directorate is his/her family member or close relative.

7. An employee of the National Bank shall not have the right, by using his/her official position, to receive any property benefit or advantage from a person subject to supervision and regulation by the National Bank or from another person related to it, in his/her own name or in the name of any other person with whom he/she is connected by close kinship, official or financial relations.

8. A member of the Board of the National Bank, as well as an employee of the National Bank, shall be obliged to notify the National Bank, in accordance with the procedure established by it, of a loan obligation and/or other material obligation of his/her or his/her family member, as a natural person, towards a representative of the financial sector, which in total exceeds GEL 10,000.

9. Members of the Board of the National Bank and employees of the National Bank shall not be entitled to act on the basis of directions and/or instructions related to official activity that are received from any other person, except the National Bank.

Organic Law of Georgia No. 2465 of 29 May 2014 – website, 2 June 2014.

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10 September 2015.

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22 March 2017.

Organic Law of Georgia No. 858 of 17 May 2017 – website, 2 June 2017.

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11 January 2018.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31 December 2019.

Organic Law of Georgia No 2137 of 30 November 2022 – website, 16 December 2022.

Organic Law of Georgia No 2627 of 22 February 2023 – website, 10 March 2023.

Organic Law of Georgia No 2997 of 31 May 2023 – website, 13 June 2023.

Organic Law of Georgia No 3773 of 29 November 2023 – website, 19 December 2023.

Article 21. Capital of the National Bank🔗

1. The capital of the National Bank shall consist of the charter capital and the general reserve fund.

2. The charter capital of the National Bank shall be 15,000,000 GEL.

3. The source for increasing the charter capital of the National Bank shall be net profit.

Article 22. General Reserve Fund of the National Bank🔗

1. The general reserve fund of the National Bank shall be created from the net profit of the year in accordance with the distribution provided for in Article 25 of this Organic Law.

2. The general reserve fund of the National Bank may be used only to cover the net loss of the National Bank.

3. (Deleted – 9 December 2025, No 1141).

Organic Law of Georgia No 2186 of 1 December 2009 – LHG I, No 40, 7 December 2009, Art. 287

Organic Law of Georgia No 1141 of 9 December 2025 – website, 12 December 2025.

Article 23. Special Reserves of the National Bank🔗

1. By decision of the Board of the National Bank, the following may be created from the net profit of the National Bank:

a) a reserve to cover the expected loss due to a change in the exchange rate of the national currency against the currencies of other countries;

b) a reserve to cover the loss caused by a change in the price of assets;

c) other special reserves.

2. Special reserves shall be used to cover the respective loss.

Article 24. Calculation of the Net Profit of the National Bank🔗

For each financial year, the net profit of the National Bank shall be calculated in accordance with International Accounting Standards and International Financial Reporting Standards as the sum of net operating profit or loss and unrealised net profit or loss resulting from revaluation. Net operating profit or loss shall be derived by deducting from the amount of income for the reporting year the current expenses intended for conducting core activities.

Article 25. Distribution of the National Bank's net profit🔗

If, after the end of the financial year, the National Bank has net profit, it shall be distributed in the following sequence:

a) If the net profit consists of net operating profit and unrealised net profit resulting from revaluation, the unrealised profit caused by revaluation shall be allocated to the corresponding special revaluation reserve. If the net profit includes an unrealised loss from revaluation, it shall be compensated from the revaluation reserve account. If the net profit consists of a net operating loss and unrealised net profit resulting from revaluation, the net profit shall be allocated to the corresponding special revaluation reserve;

b) The remaining amount of the net profit shall be used to replenish the National Bank's general reserve fund until its volume equals 15 per cent of the amount of reserve money existing at the end of the respective financial year. The Board of the National Bank is entitled to adopt a decision on replenishing the volume of the National Bank's general reserve fund with the remaining amount of the net profit by less than 15 per cent of the amount of reserve money existing at the end of the respective financial year;

c) The remaining net profit of the financial year shall be transferred to the account of the Ministry of Finance of Georgia within 6 months after the end of the National Bank's financial year.

Organic Law of Georgia No. 2186 of 1 December 2009 – LHG I, No. 40, 7 December 2009, Art. 287

Article 26. Distribution of the net loss of the National Bank🔗

1. If the National Bank incurs a net loss in any financial year, it shall be distributed as follows:

a) If the net loss consists of a net operating loss and an unrealized net loss resulting from revaluation, the amount of the net operating loss shall be charged to the general reserve fund and the amount of the unrealized loss resulting from revaluation shall be distributed to the revaluation reserve accounts. If as a result of such distribution the revaluation reserve accounts become negative, the negative balance shall be reallocated to the general reserve fund;

b) If the net loss consists of the sum of a net operating profit and a larger net unrealized revaluation loss, the revaluation loss shall be compensated from the revaluation reserve accounts. The remaining loss shall be reallocated to the general reserve fund;

c) If the net loss consists of a net operating loss and a net unrealized revaluation profit, the loss shall be charged to the general reserve fund;

d) If after the said distribution the capital of the National Bank becomes less than the charter capital, in order to cover the existing deficit (to replenish the charter capital of the National Bank), the Ministry of Finance of Georgia shall transfer to the National Bank, into its ownership, marketable (market) state debt obligations at face value with a maturity and conditions identical to the maturity and conditions of other state securities.

2. The Ministry of Finance of Georgia shall issue the securities defined by subparagraph "d" of paragraph 1 of this Article unconditionally, within 5 months after the end of the financial year of the National Bank. These securities, after their issuance, shall be reflected in the State Budget of Georgia.

Article 27. Own securities of the National Bank🔗

The National Bank is entitled, for the purpose of implementing monetary and credit policy, to issue its own securities under the rules and conditions established by it.

Article 28. Open market operations🔗

In implementing monetary and credit policy, the National Bank is entitled to conduct open market operations with state securities, securities issued by the National Bank and securities issued by international financial institutions, by way of their direct purchase or sale or subject to their subsequent alienation or redemption (repo and reverse repo operations).

Organic Law of Georgia of 15 December 2023 No. 3944 – website, 27.12.2023.

Article 29. Minimum reserve requirements🔗

1. The National Bank is entitled to establish minimum reserve requirements for a commercial bank, a microbank and a non-bank deposit institution, which are determined as a percentage ratio to attracted funds and the keeping of which in the National Bank may be made mandatory by a decision of the National Bank.

2. The National Bank determines the norms of minimum reserve requirements, the rules for their calculation and compliance, and also imposes sanctions for their violation. The amount of the monetary fine imposed as a sanction for violation of the norm of minimum reserve requirements shall be transferred to the State Budget of Georgia.

3. If the minimum reserve requirements are placed in the National Bank, it may adopt a decision on the payment of interest on the amount of the minimum reserve requirements.

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10.09.2015.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22.03.2017.

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023.

Article 29¹. (removed)🔗

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10.09.2015.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22.03.2017.

Article 30. Discount operations of the National Bank🔗

1. The National Bank is entitled, by purchasing securities of the Government of Georgia and of the National Bank, to conduct discount operations with a commercial bank, a microbank, a non-bank deposit institution and a legal entity of public law − the Deposit Insurance Agency, under the rules and conditions established by it.

2. The National Bank is entitled, at its discretion, to alienate the securities purchased through discount operations.

Organic Law of Georgia No. 474 of 28 April 2021 – website, 04.05.2021.

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023.

Article 31. Loan and Deposit Operations of the National Bank🔗

1. The National Bank is entitled to issue credits to a commercial bank, a microbank and a non-bank deposit institution that have accounts opened with the National Bank, under the procedure and conditions established by it, with appropriate collateral.

2. The list of assets to be used for securing a credit shall be approved by the Board of the National Bank.

3. The National Bank is entitled to accept deposits under the procedure and conditions established by it.

4. The National Bank may, on the basis of a decision of the Board of the National Bank and under the conditions established by it, issue a loan to a legal entity of public law – the Deposit Insurance Agency.

5. The loan provided for by paragraph 4 of this Article shall be issued only during an acute shortage of liquidity, with appropriate collateral. This loan shall be maximally short-term and its term shall not exceed 6 months, while the interest rate of the loan shall be close to the market rate and not less than the National Bank's one-day standing loan rate.

Organic Law of Georgia No. 2828 of 23 March 2010 - LHG I, No. 19, 13.04.2010, Art. 102

Organic Law of Georgia No. 858 of 17 May 2017 - website, 02.06.2017

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023

Article 32. Accounts of commercial banks, microbanks, non-bank deposit institutions, other financial institutions, the legal entity of public law − the Deposit Insurance Agency and the Pension Fund, the resolution fund with the National Bank🔗

The National Bank is entitled to hold accounts of commercial banks, microbanks, non-bank deposit institutions, a registered payment service provider that is a participant of a significant system, the legal entity of public law − the Deposit Insurance Agency and the Pension Fund, and to accept deposits from them under the procedure and conditions established by it. The National Bank is entitled to open an account − the resolution fund − for the purposes of resolution of a commercial bank.

Organic Law of Georgia No. 6305 of 25 May 2012 – website, 12.06.2012

Organic Law of Georgia No. 3264 of 21 July 2018 – website, 06.08.2018

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 474 of 28 April 2021 – website, 04.05.2021

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023

Organic Law of Georgia No. 4326 of 27 June 2024 – website, 12.07.2024

Organic Law of Georgia No. 1141 of 9 December 2025 - website, 12.12.2025

Article 33. Lender of last resort🔗

1. The National Bank shall be entitled to grant a lender of last resort loan to a commercial bank and a microbank, in addition to the loans permitted by Article 31 of this Law.

2. The term of the lender of last resort loan defined by paragraph 1 of this Article shall not exceed 3 months, and the interest rate shall be higher than the interest rates established by the National Bank for the loans defined by paragraph 1 of Article 31 of this Law and shall be secured by assets determined by the Board of the National Bank.

3. The National Bank shall be entitled, except for the case provided for by paragraph 1 of this Article, in an exceptional case, in order to ensure the stability of the financial system, to grant a lender of last resort loan to a commercial bank whose solvency is doubtful, including to a commercial bank in resolution regime. The lender of last resort loan defined by this paragraph may be granted only where the following conditions are simultaneously satisfied:

a) appropriate charges, including a penalty, shall be provided for the loan;

b) the loan shall be granted for a term of not more than 91 calendar days, which in an exceptional case, by a decision of the National Bank, may be extended by not more than 91 calendar days. If the financial crisis has not been eliminated or may not be fully eliminated within the term established by this subparagraph, the Board of the National Bank shall be entitled to grant the loan or extend its term for a period longer than that established by this subparagraph;

c) the improvement of the financial condition of the commercial bank shall be possible under adequate recapitalisation/resolution conditions, which shall be confirmed by an appropriate plan that includes, among other things, a funding plan;

d) the loan shall be secured by an unconditional and irrevocable guarantee of the Ministry of Finance of Georgia. At the same time, the National Bank shall be entitled to require the commercial bank to submit additional collateral;

e) the National Bank shall impose additional requirements on the commercial bank receiving the loan granted in accordance with this paragraph.

4. The Board of the National Bank shall determine the rules and additional conditions for granting the lender of last resort loans provided for by paragraphs 1 and 3 of this Article.

Organic Law of Georgia No. 2828 of 23 March 2010 – LHG I, No. 19, 13.04.2010, Art. 102

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023

Organic Law of Georgia No. 3949 of 15 December 2023 – website, 28.12.2023

Article 33¹. Information support for the performance of the monetary-credit and statistical functions of the National Bank🔗

1. For the purpose of information support for the performance of the monetary-credit and statistical functions, the National Bank is entitled to require from representatives of the financial sector the statistical and accounting reporting necessary for the production of statistics of the monetary, financial and external sectors, as well as other necessary information.

2. The National Bank is entitled to require from representatives of the financial sector confidential information exclusively for the performance of statistical functions.

Organic Law of Georgia of 1 July 2011 No. 5001 – website, 15.07.2011.

Article 34. Monetary unit🔗

1. The monetary unit of Georgia is the "lari". The lari consists of 100 "tetri".

2. The lari is the sole legal tender in the territory of Georgia, except for free industrial zones, free trade points and/or cases determined by the National Bank.

2¹. When an entrepreneur offers and/or advertises the sale of property and/or the provision of services in the territory of Georgia, the price shall be expressed only in lari.

2². A rule different from that provided for by paragraph 2¹ of this Article may be established by a relevant legal act of the National Bank.

2³. Cash settlements in the territory of Georgia shall be made on the basis of the principle of rounding of amounts. The principle of rounding of amounts implies rounding of an amount up or down to the nearest multiple of 5.

2⁴. The method of rounding of amounts and the rules for its application shall be determined by a legal act of the Board of the National Bank.

3. Lari banknotes and coins put into circulation or sold by the National Bank are an unconditional obligation of the National Bank at nominal value, except for those banknotes and coins that have been withdrawn from circulation and/or are classified as numismatic valuables.

Organic Law of Georgia of 23 March 2010 No. 2828 – LHG I, No. 19, 13.04.2010, Art. 102

Organic Law of Georgia of 12 October 2010 No. 3702 – LHG I, No. 56, 20.10.2010, Art. 363

Organic Law of Georgia of 1 July 2011 No. 5001 – website, 15.07.2011.

Organic Law of Georgia of 29 December 2016 No. 238 – website, 13.01.2017.

Organic Law of Georgia of 21 July 2018 No. 3313 – website, 31.07.2018.

Article 35. Issue🔗

1. Only the National Bank of Georgia has the right to produce GEL banknotes and coins intended both for circulation and for collection and/or other needs, and to issue them on the territory of Georgia. The National Bank of Georgia holds the copyright in GEL banknotes and coins.

2. The Board of the National Bank of Georgia determines the denomination, size, weight, quantity, material and other characteristics of GEL banknotes and coins.

2¹. The Board of the National Bank of Georgia develops the appearance and design of GEL banknotes and coins and approves them in accordance with the procedure established by its own normative acts.

3. In the event of a change in the design, material and/or the year indicated on the banknote and coin of an existing GEL denomination, or the introduction of a new GEL denomination, their release into circulation shall be effected by a decision of the Board of the National Bank of Georgia.

4. The issue of GEL banknotes and coins directly to cover the deficit of the State Budget of Georgia is prohibited.

5. The National Bank of Georgia has the right to sell GEL banknotes and coins, as well as numismatic valuables, both within the country and beyond its borders.

6. The Board of the National Bank of Georgia establishes the rules for the production and sale of GEL banknotes and coins.

7. The Board of the National Bank of Georgia establishes the criteria for determining the fitness of GEL banknotes and coins and the rules for their acceptance and exchange.

Organic Law of Georgia No. 2828 of 23 March 2010 – LHG I, No. 19, 13.04.2010, Art. 102

Organic Law of Georgia No. 4315 of 22 February 2019 – website, 07.03.2019.

Article 36. Storage and Destruction of Currency and Other Valuables🔗

1. The National Bank of Georgia ensures the secure storage of both currency and the original materials and other valuables necessary for the production of GEL banknotes and coins.

2. Only the National Bank of Georgia ensures the destruction of GEL banknotes and coins and the original materials necessary for their production.

3. The Board of the National Bank of Georgia establishes the procedure for the destruction of GEL banknotes and coins or their further use.

Article 37. Withdrawal from Circulation and Replacement of GEL Banknotes and Coins🔗

1. The National Bank of Georgia has the right to withdraw from circulation and replace issued GEL banknotes and coins.

2. The Board of the National Bank of Georgia establishes the procedure for the withdrawal from circulation and replacement of GEL banknotes and coins.

3. After the expiry of the replacement period determined by the Board of the National Bank of Georgia, GEL banknotes and coins subject to replacement shall cease to be legal tender.

Article 38. Currency Reserve and Issue Plan🔗

The National Bank of Georgia directly controls the cash reserve, draws up its issue plan, and provides the economy of Georgia with GEL banknotes and coins.

Article 39. Counterfeit money and reproduction of money🔗

1. Counterfeiting of money is prohibited and shall be punishable by law.

2. Counterfeit money shall be withdrawn from circulation and shall not be reimbursed.

3. The rules for responding to the detection of counterfeit money in the territory of Georgia shall be established by the Council of the National Bank.

4. The National Bank is the main expert in determining the authenticity of GEL banknotes and coins, and, in the territory of Georgia, the expert in determining the authenticity of foreign currency banknotes and coins.

5. In the territory of Georgia, the reproduction of GEL banknotes and coins shall be possible only in accordance with the rules established by the Council of the National Bank.

Article 39¹. Virtual asset🔗

1. A virtual asset does not constitute legal tender.

2. It is prohibited to make payments by virtual asset, except in the cases determined by a legal act of the National Bank of Georgia that are necessary for the provision of virtual asset services.

Organic Law of Georgia No. 1790 of 9 September 2022 – website, 23.09.2022.

Article 40. Official international reserves🔗

1. The National Bank shall own, hold and manage official international reserves, which may consist of the following assets:

a) monetary gold;

b) foreign currency in the form of coins and banknotes;

c) balances of foreign currency held in bank accounts in another country;

d) Special Drawing Rights of the International Monetary Fund (SDR) and the reserve position in the Fund;

e) promissory notes and deposit certificates denominated in and payable in foreign currency;

f) debt obligations issued by foreign countries, central banks, international financial organisations and private companies;

g) derivatives expressed in and payable in foreign currency and agreements on the purchase of securities, subject to their subsequent sale (reverse repo operations);

h) any other generally recognised international reserve assets.

2. The National Bank shall be entitled, in order to accomplish the tasks of managing official international reserves, to borrow foreign currency in its own name, for a term of up to 1 year, secured by assets included in the international reserves, or to conclude agreements on the sale of securities, subject to their subsequent repurchase, or that of their equivalent securities, at a pre-agreed price (repo operations).

Organic Law of Georgia No. 5687 of 20 December 2019 – website, 31.12.2019.

Article 41. Banker and fiscal agent🔗

1. The National Bank shall perform the role of banker and fiscal agent of the Government of Georgia.

2. It shall be the duty of the National Bank to provide consultative assistance to the President of Georgia and the Government of Georgia on all matters related to the activities of the National Bank or falling within the scope of its competence.

Article 42. Consultations on the Draft State Budget of Georgia🔗

1. Before the submission to the Parliament of Georgia of the draft State Budget of Georgia or of the draft on amendments to the State Budget of Georgia, the Minister of Finance of Georgia holds consultations with the President of the National Bank on the main parameters of the State Budget of Georgia, which include:

a) the volume and structure of total revenues;

b) the volume and structure of the surplus of the State Budget of Georgia;

c) changes in financial assets;

d) the structure of expenditures of the State Budget of Georgia.

2. The consultations shall necessarily take into account information on the plans for obtaining domestic and external loans for the public sector in the next financial year, including on the issues of agreeing the volume of credit funds, their receipt and distribution, and the expected terms of the loans. The respective state and municipal bodies of Georgia shall notify the National Bank of the debt obligations assumed.

3. As a result of the consultations, the President of the National Bank sends to the Parliament of Georgia and to the Government of Georgia a conclusion on the main parameters of the State Budget of Georgia.

Organic Law of Georgia of 15 July 2020 No. 6859 – website, 28.07.2020.

Article 43. Deposit functions🔗

1. The National Bank accepts deposits of the Treasury Service of the Ministry of Finance of Georgia. In the role of depositary, the National Bank accepts and issues monetary funds, records and provides other financial services related thereto. On the basis of payment documents, the National Bank issues funds within the limits of the amounts deposited in the said accounts. The National Bank may decide on the payment of interest on such deposits.

2. The National Bank may authorise other financial institutions to accept such deposits in accordance with the conditions determined by it.

Article 44. Functions of the financial agent🔗

The National Bank may itself perform the role of financial agent of state institutions on the following issues:

a) the sale of debt obligations issued by them, including the performance of transfer agent or other necessary administrative functions;

b) the issuance of principal amounts and interest, the making of other payments under securities;

c) the performance of payment operations from their accounts;

d) other issues corresponding to the functions of the National Bank.

Article 45. Information to be provided to the National Bank🔗

The National Bank is entitled to request and receive from a state institution and from any other person all necessary statistical, accounting and other information (including confidential information) required for the performance of its functions.

Organic Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Organic Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Article 46. Right of the National Bank to provide financial assistance🔗

1. The National Bank shall not provide financial assistance to the Government of Georgia and state institutions, except in the case of the issuance of dividends provided for by Article 25 of this Organic Law. The National Bank, proceeding from the objectives of monetary-credit policy, shall purchase state securities only on the secondary market.

2. The National Bank of Georgia shall have the right to purchase state securities on the primary market only in exchange for securities already existing in its portfolio, if their redemption date coincides with the issue date of the new securities. The purchase shall be effected at the weighted average price fixed at the auction. In the case of each auction, the volume of securities purchased by the National Bank constitutes an additional issue of the securities offered for sale at the auction and shall not exceed 20% of the total volume of securities sold at that auction.

Article 47. Tasks and objectives of the National Bank from the standpoint of supervision of the financial sector🔗

The task of the National Bank is to promote the financial stability and transparency of the financial sector, and the protection of the rights of consumers and investors. To accomplish this task, the National Bank shall promote the stable and efficient functioning of the financial system, the establishment of a competitive environment, control of systemic risk, and reduction of potential risks.

Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Article 47¹. (Removed)🔗

Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Article 47². (Removed)🔗

Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Article 47³. (Removed)🔗

Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Record of the organizational sitting of the Plenum of the Constitutional Court of Georgia of 12 October 2015 No. 3/6/668 – website, 23.10.2015.

Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Article 47⁴. (Removed)🔗

Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Record of the organizational sitting of the Plenum of the Constitutional Court of Georgia of 12 October 2015 No. 3/6/668 – website, 23.10.2015.

Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Article 47⁵. (Removed)🔗

Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Article 47⁶. (removed)🔗

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Article 47⁷. (removed)🔗

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Article 47⁸. Powers of the National Bank in the field of promoting the creation of a competitive environment in the financial sector🔗

1. In the field provided for by this Law, compliance with the requirements established by the Law of Georgia on Competition shall be ensured by the National Bank. The National Bank shall, in accordance with the procedure established by this Law and the Law of Georgia on Competition, consider a complaint/application on a possible violation of competition and a notification on concentration submitted by a representative of the financial sector (except an accountable enterprise), a loan-granting entity or a credit information bureau. When considering a complaint/application on a possible violation of competition and a notification on concentration, the National Bank shall be guided by the Law of Georgia on Competition, unless otherwise provided by this Law. In the event of adopting a decision on a violation of competition, the National Bank shall impose on the violator of competition the monetary fine provided for by the Law of Georgia on Competition. The National Bank shall be entitled, in respect of the violator of competition, to apply, along with the monetary fine, another sanction and/or a supervisory measure.

2. The National Bank shall be entitled, when ensuring compliance with the requirements established by the legislation of Georgia on competition, to give priority to ensuring financial stability.

3. The National Bank shall be entitled, for the purpose of performing the functions provided for by paragraph 1 of this Article, to issue legal acts, including to establish threshold amounts, in the event of exceeding which a notification on concentration must be submitted in writing to the National Bank in advance, to carry out appropriate measures, to issue written instructions, to impose additional requirements, appropriate restrictions and/or monetary fines.

4. In the event of an application by the Legal Entity of Public Law – the Competition and Consumer Protection Agency of Georgia, the National Bank shall request information (including confidential information) from the entity defined by paragraph 1 of this Article and shall transfer it to the Competition and Consumer Protection Agency of Georgia.

Organic Law of Georgia No. 7129 of 16 September 2020 – website, 21.09.2020

Organic Law of Georgia No. 3764 of 29 November 2023 – website, 11.12.2023

Article 48. Supervisory authority of the National Bank🔗

1. The National Bank is vested with full authority to supervise the activities of commercial banks, microbanks, banking groups, non-bank deposit institutions, microfinance organizations, independent registrars of securities, brokerage companies (except insurance brokers), the stock exchange, the central depositary, the specialized depositary, asset management companies, accountable enterprises, the pension fund, currency exchange points, investment funds, authorized special purpose entities for securitization, payment system operators, payment service providers, the credit information bureau, lending entities and virtual asset service providers, on the basis of this Law and other legal acts.

[ 1. The National Bank is vested with full authority to supervise the activities of commercial banks, microbanks, banking groups, non-bank deposit institutions, microfinance organizations, independent registrars of securities, brokerage companies (except insurance brokers), the stock exchange, the central depositary, the specialized depositary, asset management companies, accountable enterprises, the pension fund, currency exchange points, investment funds, authorized special purpose entities for securitization, payment system operators, payment service providers, the credit information bureau, lending entities, factoring companies, factoring platforms and virtual asset service providers, on the basis of this Law and other legal acts. (shall enter into force from 1 January 2027)]

1¹. The National Bank shall supervise the fulfilment of the obligations defined by paragraphs 1 and 2 of Article 19, paragraphs 1−4 of Article 21, paragraphs 1−4 of Article 23 and Articles 24 and 26 of the Law of Georgia "On Conversion into Securities" by a non-authorized special purpose entity for securitization, an institutional investor, an original creditor registered in Georgia and an originator (except an insurance organization licensed in accordance with the Law of Georgia "On Insurance") provided for by the same Law.

2. (removed – 23 December 2018, No. 1894).

3. The National Bank is entitled, for the performance of supervisory functions, to issue relevant resolutions and orders, carry out relevant measures, issue written instructions, establish additional requirements and relevant restrictions, and apply supervisory measures and/or sanctions.

4. In addition to the grounds provided for by the legislation of Georgia, the National Bank is also entitled to refuse a person registration, licensing, authorisation or recognition as a subject provided for by paragraph 1 of this Article, or, in the cases provided for by the legislation of Georgia, the acquisition of a significant share of a subject provided for by this Article, if:

a) the registration, licensing, authorisation or recognition of the person as a subject, or the acquisition by the person of a significant share of a subject, may pose a threat to the stability of the financial sector of Georgia;

b) the registration, licensing, authorisation or recognition of the person as a subject, or the acquisition by the person of a significant share of a subject, may result in the violation or/and non-fulfilment of a requirement provided for by a binding decision or/and recommendation of an international organisation;

c) the registration, licensing, authorisation or recognition of the person as a subject, or the acquisition by the person of a significant share of a subject, may result in the violation of an agreement concluded between Georgia and a foreign country;

d) the interested person, upon the request of the National Bank, has not submitted to it complete information on the origin of the funds necessary for the fulfilment of the minimum capital requirements established by the legislation of Georgia for commencing the activity of a subject, or, in the cases provided for by the legislation of Georgia, of the funds necessary for the acquisition of a significant share;

e) according to the information available to the National Bank, the interested person (subject, administrator, holder of a significant share, beneficial owner) violates entrepreneurial, banking and/or financial legislation and/or carries out such entrepreneurial practice as poses a threat, or may pose a threat, to the sound functioning of a specific subject and/or the financial sector;

f) the group structure, the ownership structure and the governance structure and/or the operational activity/environment of the interested legal entity are not sufficiently transparent, which may impede the exercise of effective individual or consolidated supervision and/or pose a threat to the stability and sound functioning of a specific subject and/or the financial sector.

4¹. The National Bank is entitled to:

a) in accordance with the legislation of Georgia on facilitating the prevention of money laundering and the financing of terrorism, request and receive from a subject subject to supervision information on the sources of origin of the capital of the subject subject to supervision, the ownership structure, the direct owners of a significant share and the beneficial owners (including on the origin of property and/or funds);

b) in case of violation of the legislation of Georgia on facilitating the prevention of money laundering and the financing of terrorism, to terminate or restrict certain operations of a subject subject to supervision, to prohibit the distribution of profit, the accrual and payment of dividends, the increase of remuneration of labour, the payment of bonuses and other similar remuneration, to impose a monetary fine, to cancel its registration, authorization, recognition and to revoke its licence;

c) in case of violation of the legislation of Georgia on facilitating the prevention of money laundering and the financing of terrorism, to suspend the right of signature of the administrator of a subject subject to supervision, to impose a monetary fine and to request his dismissal from office;

d) in accordance with the legislation of Georgia on facilitating the prevention of money laundering and the financing of terrorism, to provide to a subject subject to supervision the list of persons whose activity contains or may contain the risk of money laundering or the financing of terrorism;

e) in case of failure to submit the requested information within the established term or of incomplete submission, in accordance with the legislation of Georgia on facilitating the prevention of money laundering and the financing of terrorism, to impose a sanction on a subject subject to supervision in accordance with the procedure established by it.

4². For the purpose of preventing money laundering and the financing of terrorism and combating them, the National Bank supervises the activity of a subject subject to supervision on the basis of a risk-based approach.

4³. Information on sanctions imposed by the National Bank shall be published on the official website of the National Bank in accordance with the procedure established by the National Bank.

4⁴. The National Bank is entitled, for violation of the requirements of the legislation on securities, to publish information on sanctions imposed by the National Bank on the official website of the National Bank in accordance with the procedure established by it.

5. In order to perform supervisory functions, the National Bank is entitled, within the scope of its competence, to request and receive any information (including confidential information) from the subjects provided for by paragraph 1 of this article.

6. The National Bank is entitled, for the purpose of facilitating the prevention of money laundering and the financing of terrorism, to cooperate with local supervisory and law enforcement bodies.

7. By this Law, the Law of Georgia "On the Activity of Commercial Banks", the Law of Georgia "On the Activity of Microbanks" or a normative act of the National Bank, the rules and conditions of use of an electronic document and electronic signature (including an electronic document and electronic signature different from that defined by the Law of Georgia "On Electronic Document and Electronic Trust Services") and their legal force may be determined differently from the Law of Georgia "On Electronic Document and Electronic Trust Services".

7¹. Correspondence/communication between a supervised entity and the National Bank may be carried out in material or electronic form. These forms have equal legal force. The National Bank is authorized to determine the rules for the use of electronic signature during correspondence/communication with a supervised entity. An electronic signature used in accordance with the rules established by the National Bank has equal legal force to a personal signature on a material document.

8. The National Bank is authorized to receive from a supervised entity an electronic document sent in accordance with the rules established by it and/or bearing a qualified electronic signature. The use of a qualified electronic signature shall be regulated by a contract concluded between the National Bank and the supervised entity.

9. If delivery of a material document and/or electronic document to a supervised entity cannot be effected, the President or Vice-President of the National Bank has the right to adopt a decision on the public dissemination of the official document. The official document shall be publicly disseminated by posting it on the official website of the National Bank. The public notice shall be deemed delivered on the 15th working day from its public dissemination.

10. The entity provided for by paragraph 1 of this article has the right to develop and submit to the National Bank for agreement a security policy for the use of electronic signature in the provision of services. An electronic signature used during the provision of a service on the basis of the security policy for the use of electronic signature in the provision of a specific service agreed with the National Bank has equal legal force to a personal signature on a material document. An electronic document certified by the said electronic signature may be used in all cases where the legislation of Georgia requires the material form of a document.

11. If an entity intends to use an electronic signature whose legal force is recognized on the basis of law and whose security policy for use has not been agreed with the National Bank, the entity shall be obliged to notify the National Bank in advance of the use of such electronic signature.

12. The National Bank is authorized to establish for a representative of the financial sector, a virtual asset service provider and a lending entity the rules for the protection of consumer rights in the provision of services (including the provision of information necessary for the consumer).

13. The National Bank is authorized to publish a draft normative act of the National Bank related to the financial sector before its approval for the purpose of receiving comments from interested parties. This shall not apply to a draft normative act whose adoption is necessary for the purposes of a resolution and/or to maintain the stability of the financial sector and/or which must enter into force immediately.

14. The National Bank is authorized to provide any information (including confidential information) directly or indirectly related to the entity provided for by paragraph 1 of this Article to the appraiser and auditor (audit firm) of the said entity. The National Bank exercises this power for the purpose of facilitating and/or assessing the proper fulfillment of supervisory requirements and/or resolution requirements, as well as within the framework of exercising resolution powers. No one has the right to require the National Bank to submit the information defined by this paragraph. The provision/non-provision by the National Bank of the information defined by this paragraph may not become a basis for the appraiser of the said entity to conduct an assessment or for the auditor (audit firm) to conduct an audit improperly. The appraiser and auditor (audit firm) shall be obliged to maintain the confidentiality of information received from the National Bank, except for cases provided for by law.

15. The National Bank is authorized to implement the relevant measures provided for by the Law of Georgia "On Financial Collateral, Netting and Derivatives", including to issue legal acts, give written instructions, and impose additional requirements, relevant restrictions and/or sanctions.

16. The National Bank is authorized, in a special case where an entity subject to supervision does not have funds to cover liquidation expenses, to issue funds to cover the expenses necessary for the uninterrupted conduct of the liquidation process of the entity subject to supervision, which shall be satisfied in accordance with the procedure established by the legislation of Georgia. The procedure for issuing and satisfying the said funds shall be established by the National Bank.

17. The National Bank has the right to exercise the powers, supervisory measures and/or relevant measures defined by the Law of Georgia "On Voluntary Private Pension", including to adopt a decision on termination of the authority of a specialized depositary to service one or more pension schemes, issue legal acts, and impose additional requirements and/or relevant restrictions. For the purposes of the Law of Georgia "On Voluntary Private Pension", the National Bank shall cooperate with a legal entity of public law − the State Insurance Supervision Service of Georgia. This cooperation may include the exchange of information (including confidential information).

Organic Law of Georgia No. 5527 of 20 December 2011 – website, 28.12.2011.

Organic Law of Georgia No. 6017 of 10 April 2012 – website, 30.04.2012.

Organic Law of Georgia No. 6320 of 25 May 2012 – website, 12.06.2012.

Organic Law of Georgia No. 6305 of 25 May 2012 – website, 12.06.2012.

Organic Law of Georgia No. 262 of 6 March 2013 – website, 20.03.2013.

Organic Law of Georgia No. 353 of 20 March 2013 – website, 04.04.2013.

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Organic Law of Georgia No. 668 of 21 April 2017 – website, 10.05.2017

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Organic Law of Georgia No. 5240 of 30 October 2019 – website, 30.10.2019

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 5687 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 6674 of 29 June 2020 – website, 07.07.2020

Organic Law of Georgia No. 6816 of 14 July 2020 – website, 22.07.2020

Organic Law of Georgia No. 1477 of 12 April 2022 – website, 19.04.2022

Organic Law of Georgia No. 1790 of 9 September 2022 – website, 23.09.2022

Organic Law of Georgia No. 1810 of 9 September 2022 – website, 23.09.2022

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023

Organic Law of Georgia No. 3354 of 28 June 2023 – website, 18.07.2023

Organic Law of Georgia No. 3944 of 15 December 2023 – website, 27.12.2023

Organic Law of Georgia No. 4326 of 27 June 2024 – website, 12.07.2024

Organic Law of Georgia No. 1141 of 9 December 2025 – website, 12.12.2025

Organic Law of Georgia No. 1465 of 1 April 2026 – website, 06.04.2026

Article 48¹. (removed)🔗

Organic Law of Georgia No. 6320 of 25 May 2012 – website, 12.06.2012

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 4468 of 28 October 2015 – website, 11.11.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Article 48². Registration of and supervision over a payment system operator and a payment service provider🔗

1. The National Bank shall supervise a payment system operator and a payment service provider in accordance with the legislation of Georgia, through registration, cancellation of registration, inspection, establishment of additional requirements, determination of initial and current capital, imposition of restrictions and imposition of sanctions.

2. The rules for registration and cancellation of registration of a payment system operator and a payment service provider by the National Bank, the sanctions applicable to them, including the amount of a monetary fine and the rules for its imposition, shall be determined by normative acts of the National Bank. The amount of the monetary fine shall be transferred to the State Budget of Georgia.

3. The National Bank, in accordance with the legislation of Georgia, shall determine the matters of granting and cancelling the status of a significant system and the status of a significant payment service provider, including being entitled, in accordance with the procedure established by it, to grant a payment system the status of a systemically important payment system or a prominently important payment system, as well as to determine the relevant criteria and requirements for capital and assets.

4. The National Bank shall be entitled to determine by a legal act the suitability criteria for the administrator of a payment service provider and the administrator of a payment system operator.

4¹. (Removed - 09.09.2022, No. 1810).

5. The National Bank shall be entitled, in accordance with the procedure established by it, to inspect the fulfilment by a payment service provider of the requirements defined by the "Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)".

Organic Law of Georgia No. 6305 of 25 May 2012 – website, 12.06.2012

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 4468 of 28 October 2015 – website, 11.11.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Organic Law of Georgia No. 1810 of 9 September 2022 – website, 23.09.2022

Article 48³. Credit activity and banking activity🔗

1. No one shall have the right to accept deposits and, by using them, issue credits without a banking activity licence or a microbank activity licence issued by the National Bank.

2. An entrepreneurial entity or a group of interrelated persons shall not have the right, without registration as a microfinance organization by the National Bank, a non-bank-deposit – credit activity licence or a banking activity licence, to attract repayable funds (including to receive a loan) from more than 20 natural persons (including from an individual entrepreneur) and/or to advertise the attraction of repayable funds from a wide circle of persons.

3. (Removed - 21.07.2018, No. 3320).

4. The restriction provided for by paragraph 2 of this Article shall not apply to:

a) public offering of securities;

b) private offering of securities to a qualified (sophisticated) investor as defined by the Law of Georgia "On the Securities Market";

c) insurance activity as defined by the Law of Georgia "On Insurance";

d) a pension scheme as defined by the Law of Georgia "On Voluntary Private Pension";

e) the activity of a brokerage company as defined by the Law of Georgia "On the Securities Market";

f) the granting of a loan by a natural person to another non-entrepreneurial natural person;

g) the granting of a loan by a partner/shareholder of an enterprise to that enterprise;

h) the making of a contribution to the capital of that enterprise by a partner/shareholder of the enterprise;

i) services related to electronic money as defined by the Law of Georgia "On Payment Systems and Payment Services";

i¹) investment funds and asset management companies as defined by the Law of Georgia "On Investment Funds";

i²) a special purpose entity for securitization as defined by the Law of Georgia "On Conversion into Securities";

j) cases determined by the National Bank.

5. A microbank shall have the right, in accordance with the Law of Georgia "On the Activity of Microbanks", to attract repayable funds (including to receive a loan) from a natural person (including from an individual entrepreneur) and/or to advertise the attraction of repayable funds from a wide circle of persons.

Organic Law of Georgia of 23 December 2017 No. 1894 – website, 11.01.2018.

Organic Law of Georgia of 21 July 2018 No. 3320 – website, 07.08.2018.

Organic Law of Georgia of 14 July 2020 No. 6816 – website, 22.07.2020.

Organic Law of Georgia of 22 February 2023 No. 2627 – website, 10.03.2023.

Organic Law of Georgia of 28 June 2023 No. 3354 – website, 18.07.2023.

Organic Law of Georgia of 15 December 2023 No. 3944 – website, 27.12.2023.

Article 49. Supervision of a commercial bank, microbank and non-bank deposit institution🔗

1. The National Bank shall be entitled to:

a) supervise the activities of a commercial bank, microbank and non-bank deposit institution. Supervision entails the issuance and revocation of licences (including a conditional licence for a commercial bank), inspection and regulation, issuance of written instructions, imposition of additional requirements and restrictions, and application of supervisory measures and sanctions;

b) request and receive information on the sources of origin of the capital of a commercial bank and microbank and on both the direct owners and beneficial owners of its significant share;

c) within the scope of its competence, request and receive any information (including confidential information) on the direct owners and beneficial owners of a commercial bank and microbank and, by a legal act, impose additional requirements on them;

d) supervise and inspect a commercial bank, microbank and non-bank deposit institution, inspect their subsidiary enterprises, audit accounting documents, components of financial reporting and other materials, and receive from them any information within the scope of its competence in the form determined by it. If signs of a crime are detected as a result of the inspection, the materials shall be transferred to the relevant bodies;

e) increase the required reserve ratios for a commercial bank, microbank and non-bank deposit institution, suspend their active operations, prohibit them from distributing profit, accruing and paying dividends, increasing labour remuneration, paying bonuses and other similar remuneration, require them to attract additional capital, increase the ratios of reserves for possible losses on assets and contingent liabilities;

f) suspend the right of administrators of a commercial bank, microbank and non-bank deposit institution to sign; impose a monetary fine on them and require their dismissal from office; collect a monetary fine from a commercial bank, microbank and non-bank deposit institution; revoke the relevant licence of a commercial bank, microbank and non-bank deposit institution;

g) by a normative act, establish for a commercial bank, microbank and non-bank deposit institution the rules for the issuance and revocation of the relevant licence, and determine the amount of the monetary fine and the procedure for its imposition. The amount of the monetary fine shall be transferred to the State Budget of Georgia;

h) when issuing a conditional licence to a commercial bank, in order to reduce risks, determine the relevant restrictions and/or individual/additional requirements, the stages and timeframes for their full fulfilment, as well as the procedure and conditions for issuing a conditional licence;

i) in exceptional cases, under the rules established by the Law of Georgia “On the Activities of Commercial Banks” and the Law of Georgia “On the Activities of Microbanks”, without the complete submission of the information/documentation provided for by the legal act of the National Bank on the criteria for the suitability of administrators, to issue conditional consent to the appointment of an administrator of a commercial bank or microbank and determine the period for the complete submission of the information/documentation to be not more than 6 months;

j) to release a commercial bank or microbank, for a certain period and/or under certain conditions, from compliance with the norms established by it;

k) to review and assess a recovery plan developed and submitted by a commercial bank, and also to require it to make amendments and/or additions to the recovery plan in accordance with the procedure established by the legislation of Georgia;

l) to apply to a commercial bank an early intervention measure provided for by the Law of Georgia “On the Activities of Commercial Banks”, and to a microbank — the temporary administration regime defined by the Law of Georgia “On the Activities of Microbanks”;

m) in a special case, for the purpose of the stable functioning of the financial system, to immediately take appropriate measures for commercial banks and microbanks: in addition to the public holidays provided for by the Organic Law of Georgia “Labour Code of Georgia”, to additionally establish rest days, to declare the public holidays provided for by the Organic Law of Georgia “Labour Code of Georgia” and/or Saturday and/or Sunday as banking days/day; to impose certain restrictions and/or release from restrictions and carry out other actions necessary for maintaining the stability of the financial system;

n) to establish simplified supervisory requirements in order to achieve the objectives of the resolution defined by Article 55¹ of this Law and to effectively implement the resolution process;

o) to verify, in accordance with the procedure established by it, the fulfilment by a commercial bank, microbank and non-bank depository institution of the requirements defined by the “Agreement between the Government of the United States of America and the Government of Georgia for the Improvement of International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)”;

p) to supervise the activities of a commercial bank and microbank on the basis of a risk-based approach;

q) to regulate and supervise the mortgage-backed bonds market in accordance with the Law of Georgia “On Mortgage-Backed Bonds”.

2. The National Bank shall appoint a temporary administrator and a liquidator of a commercial bank, microbank and non-bank depository institution. They shall be accountable to the National Bank. All powers of all bodies of the commercial bank, microbank and non-bank depository institution (including the general meeting of shareholders) shall pass to the temporary administrator and liquidator.

3. The National Bank is entitled to determine for a commercial bank, a microbank and a non-bank deposit institution the minimum amount of capital and the rule for its calculation.

4. A commercial bank, a microbank and a non-bank deposit institution may be declared insolvent and/or bankrupt only by a decision of the National Bank, in accordance with the procedure established by the National Bank itself.

5. The National Bank shall carry out inspection of an international financial company in accordance with the special rules established by it, only for the purpose of verifying compliance with the restrictions imposed on international financial companies by the legislation of Georgia.

Organic Law of Georgia of 1 July 2011 No. 5001 - website, 15.07.2011.

Organic Law of Georgia of 3 September 2015 No. 4188 - website, 10.09.2015.

Organic Law of Georgia of 28 October 2015 No. 4468 - website, 11.11.2015.

Organic Law of Georgia of 10 March 2017 No. 436 - website, 22.03.2017.

Organic Law of Georgia of 23 December 2017 No. 1894 – website, 11.01.2018.

Organic Law of Georgia of 20 December 2019 No. 5654 – website, 31.12.2019.

Organic Law of Georgia of 9 September 2022 No. 1799 – website, 23.09.2022.

Organic Law of Georgia of 30 November 2022 No. 2137 – website, 16.12.2022.

Organic Law of Georgia of 22 February 2023 No. 2627 – website, 10.03.2023.

Organic Law of Georgia of 9 December 2025 No. 1141 - website, 12.12.2025.

Article 49¹. Supervision of the activities of a banking group🔗

1. The purpose of supervision of the activities of a banking group is to promote the stability of the financial sector and the sound functioning of the commercial bank/commercial banks, microbank/microbanks included in the banking group.

2. When supervising the activities of a banking group, the National Bank shall be entitled to:

a) examine the banking group, conduct inspections both through on-site examination and remote supervision, conduct an audit of accounting documents, reporting components and other materials, both individually and on a consolidated basis;

b) have full access to data and documents on the supervisory board, management and employees of each member of the banking group;

c) assess the risk profile of the banking group, the risk management framework and the effectiveness of the banking group's internal control mechanisms. Within the scope of the assessment, the National Bank shall be entitled to request and receive from a member of the banking group, as well as from any person related to the banking group, any information (including confidential information) at its disposal about the banking group and other persons related to the banking group, both individually and on a consolidated basis, for the purpose of assessing the risks arising from them and their impact on the banking group;

d) establish requirements related to the formation of the structure of the banking group, including to require a change (simplification) of the ownership structure of a commercial bank, microbank and/or the structure of the banking group, if the complexity of the structure impedes the exercise of effective supervision and/or poses or may pose a threat to the stability and sound functioning of the commercial bank, microbank and/or the financial sector;

e) in respect of the commercial bank/commercial banks, microbank/microbanks included in the banking group and/or one member and/or several members of the banking group on a consolidated basis, establish:

e.a) minimum capital requirements;

e.b) liquidity requirements;

e.c) requirements for the management of large exposures and conflicts of interest;

e.d) the ratio of different types of capital to classified assets;

e.e) requirements related to information disclosure;

e.f) requirements related to corporate governance;

e.g) requirements related to reporting and audit;

e.h) suitability criteria for the administrator;

e.i) other additional requirements.

3. The National Bank shall be entitled, based on the risks of the banking group, in the event of a violation of the requirements and/or restrictions defined by this article, to impose requirements on a commercial bank, microbank and/or issue written instructions.

4. The National Bank shall be entitled to establish by a normative act the rules for consolidated supervision of a banking group.

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023

Article 50. Supervision of the Activity of a Microfinance Organization and a Currency Exchange Point🔗

1. The National Bank shall be authorized to:

a) supervise the activity of a microfinance organization. Supervision includes registration and cancellation of registration, inspection and regulation, issuance of written instructions, imposition of additional requirements, restrictions and sanctions;

b) request and receive information about the sources of origin of the capital of a microfinance organization and about the direct owners and beneficial owners of its significant share (including the origin of property and/or funds);

c) establish by a legal act requirements for the holders of a significant share of a microfinance organization;

d) inspect a microfinance organization, conduct an audit of accounting documents, reporting components and other materials, and receive any information therefrom (including confidential information) in the form determined by it, within the scope of its competence;

e) suspend or restrict certain types of operations and/or the raising of funds for a microfinance organization, prohibit the distribution of profit, the accrual and payment of dividends, the increase of labour remuneration, the payment of bonuses and other similar remuneration, and require the raising of additional capital;

f) determine by a legal act the suitability criteria for the administrator of a microfinance organization;

g) suspend the signing authority of the administrator of a microfinance organization, impose a monetary fine on him/her and request his/her dismissal from office;

h) determine by a legal act the norms for the classification of assets and reserves for possible losses of a microfinance organization;

i) determine by a legal act the minimum amount of supervisory capital of a microfinance organization and the rules for its formation;

j) determine by a legal act the liquidation rules of a microfinance organization.

2. The National Bank shall supervise the activity of a currency exchange point through its registration and cancellation of registration, inspection, issuance of written instructions, and imposition of requirements and sanctions.

3. The rules for registration and cancellation of registration of a microfinance organization and a currency exchange point by the National Bank, the amount of the monetary fine and the rules for its imposition shall be determined by the normative acts of the National Bank. The amount of the monetary fine shall be transferred to the State Budget of Georgia.

4. The National Bank shall be authorized to request and receive from a currency exchange point any information (including confidential information) in accordance with the procedure established by it.

5. The National Bank shall be authorized, in accordance with the procedure established by it, to verify the fulfillment by a microfinance organization of the requirements defined by the “Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)”.

Organic Law of Georgia No. 5527 of 20 December 2011 - website, 28 December 2011.

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10 September 2015.

Organic Law of Georgia No. 4468 of 28 October 2015 - website, 11 November 2015.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22 March 2017.

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11 January 2018.

Article 50¹. Protection of consumer rights when providing services by a currency exchange point🔗

1. A currency exchange point shall, when providing services, provide the consumer with complete information on the currency exchange rate and the amount of the service commission (if any).

2. The cancellation of a currency exchange transaction and the return of the exchanged currency may be carried out in accordance with the rule provided for by paragraph 3 of this Article.

3. The National Bank shall determine the rule for providing information to the consumer when providing services by a currency exchange point and for the cancellation of a currency exchange transaction.

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11 January 2018.

Article 50². Protection of confidential information by a currency exchange point🔗

1. A currency exchange point shall be obliged to protect the confidentiality of information. Information may be provided only to the tax authority on the basis of a court judgment provided by the Administrative Procedure Code of Georgia and the "Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)".

2. Information about a user existing in a currency exchange point (information on any transaction, performed operation) may be provided only to the parties to the respective transaction and their authorized representatives, the National Bank, the Disputes Review Commission at the National Bank, in cases determined by the legislation of Georgia – to the Financial Monitoring Service of Georgia, and when conducting an inspection provided by the Law of Georgia "On Personal Data Protection" − to the State Audit Office. Any information about a user shall be provided to other persons only on the basis of a respective court judgment or the prior written consent of the user.

3. Judicial and investigative bodies and tax services shall be prohibited from transferring information to another body, including the mass media, before a respective judgment is rendered by the court, as well as from public use of this information, except for the case provided by paragraph 1 of this article, when the information is transferred on the basis of the "Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)".

Organic Law of Georgia No. 1810 of 9 September 2022 – website, 23.09.2022

Organic Law of Georgia No. 1317 of 17 December 2025 – website, 23.12.2025

Article 51. (Removed)🔗

Organic Law of Georgia No. 353 of 20 March 2013 – website, 04.04.2013

Article 52. Supervision of the Securities Market🔗

The National Bank shall be entitled to:

a) regulate the relations arising from the issuance of securities by issuers and their circulation, as well as the issues related to the holding of securities, in accordance with the Law of Georgia “On Holding Dematerialized Securities”; ensure the prevention, detection and suppression of violations in the field of issuance and circulation of securities;

b) issue and revoke licences of regulated participants of the securities market;

c) establish minimum capital requirements for regulated participants of the securities market;

d) approve the emission prospectus;

e) monitor, inspect and examine the activities of regulated participants of the securities market;

e¹) in the event of a possible violation of the requirements of this Law, of the rules established by the National Bank of Georgia or of the legislation on securities, and/or of a possible threat to investors' interests, as well as on the basis of a written application received, within the framework of the relevant memorandum of understanding, from a body of another country which has functions similar to those of the National Bank, request and receive from any person, in accordance with the procedure established by it, an explanation in written and/or oral form;

f) verify, in accordance with the procedure established by it, the fulfilment by a securities market participant of the requirements defined by the “Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)”;

g) in accordance with the legislation of Georgia, adopt, amend and revoke the rules related to the regulation of the securities market and supervise their implementation;

h) impose sanctions on regulated participants of the securities market and other persons, including a monetary fine. The amount of the monetary fine and the procedure for its imposition shall be determined by a normative act of the National Bank. The amount of the monetary fine shall be transferred to the State Budget of Georgia.

Organic Law of Georgia of 3 September 2015 No. 4188 – website, 10.09.2015.

Organic Law of Georgia of 28 October 2015 No. 4468 – website, 11.11.2015.

Organic Law of Georgia of 10 March 2017 No. 436 – website, 22.03.2017.

Organic Law of Georgia of 29 June 2020 No. 6674 – website, 07.07.2020.

Organic Law of Georgia of 16 November 2023 No. 3730 – website, 07.12.2023.

Article 52¹. Supervision of the activities of a credit information bureau🔗

1. The National Bank is entitled to supervise the activities of a credit information bureau. Supervision entails, for the purposes of financial stability, protection of consumer rights, security/safety of information and continuity of activity, inspection and regulation of the credit information bureau, issuance of written instructions, imposition of requirements (including financial and operational requirements), restrictions (including service fees) and sanctions, and, to that end, issuance of relevant legal acts.

2. An entrepreneurial entity intending to carry out the activity of a credit information bureau shall be obliged to undergo registration with the National Bank and to satisfy the requirements established by the National Bank. The rules for registration with the National Bank, deregistration and regulation of a credit information bureau shall be established by a legal act of the National Bank.

3. A lending organization shall be obliged to provide the credit information bureau with information on the loan/credit in accordance with the procedure established by the National Bank.

4. The National Bank establishes the rules for the provision of information to a credit information bureau on the territory of Georgia, for recording in the credit information bureau's database and for access.

5. The National Bank is entitled, in connection with the provision of information to a credit information bureau, for violation of the requirements defined by this Law and/or legal acts of the National Bank, to impose a monetary fine, in accordance with the procedure established by it, on the entity provided for by paragraph 1 of Article 48 of this Law.

Organic Law of Georgia of 23 December 2017 No. 1894 – website, 11.01.2018.

Article 52². Supervision of the activity of a lending entity and confidentiality of information🔗

1. The National Bank is entitled to supervise the activity of a lending entity. Supervision entails the registration and deregistration of a lending entity, inspection and regulation, the issuance of written instructions, and the imposition of requirements, restrictions and sanctions.

2. A lending entity shall be registered with the National Bank and shall meet the requirements established by the National Bank. The rules for registration with the National Bank, deregistration and regulation of a lending entity shall be established by a legal act of the National Bank.

3. The National Bank is entitled, for a violation of this Law and of legal acts and/or requirements of the National Bank, to impose a sanction (including a monetary fine) on a lending entity in accordance with the procedure established by it. The amount of the monetary fine shall be transferred to the State Budget of Georgia.

4. The registration obligation provided for by paragraph 2 of this Article shall not apply to:

a) a representative of the financial sector;

b) the issuance of a loan by an entrepreneurial entity to a partner/shareholder and/or an employee of the enterprise.

5. A lending entity (entrepreneurial entity) shall comply with the requirements established by order of the Minister of Internal Affairs of Georgia in relation to security and to the property and operation of the special electronic programme for recording movable things accepted as a means of securing a monetary claim.

6. A lending entity shall maintain the confidentiality of information. Information may be provided to a tax authority only on the basis of a court judgment provided for by the Administrative Procedure Code of Georgia and of the Agreement "between the Government of the United States of America and the Government of Georgia for the improvement of the fulfilment of international tax obligations and for the implementation of the Foreign Account Tax Compliance Act (FATCA)".

7. Information held by a lending entity about a borrower (information on any transaction, effected operation, existing debt or balance) may be provided only to the parties to the relevant transaction and their authorised representatives, the National Bank, the commission for the consideration of disputes existing under the National Bank, and, in the cases determined by the legislation of Georgia, to the Financial Monitoring Service of Georgia, and, when carrying out an inspection provided for by the Law of Georgia on Personal Data Protection, to the State Audit Office. Any information about a borrower shall be provided to other persons only on the basis of a relevant court judgment or the prior written consent of the borrower.

8. Courts and investigative bodies and tax services shall be prohibited, before the court delivers the relevant judgment, from transferring information to another body, including the media, as well as from publicly using this information, except for the case provided for by paragraph 6 of this article, when the information is transferred on the basis of the "Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)".

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Organic Law of Georgia No. 3320 of 21 July 2018 – website, 07.08.2018

Organic Law of Georgia No. 1810 of 9 September 2022 – website, 23.09.2022

Organic Law of Georgia No. 1317 of 17 December 2025 – website, 23.12.2025

Article 52³. Supervision of the Pension Fund🔗

The National Bank is entitled to:

a) regulate the activities of the Pension Fund in accordance with the Law of Georgia on Funded Pension;

b) approve the investment policy document of the Pension Fund, the risk management framework and other policy documents determined in accordance with the procedure established by it; periodically verify the compliance of the Pension Fund's policy documents with the requirements established by it;

c) within the scope of its supervisory activities, give binding instructions to the Pension Fund;

d) assess the respective charters and activities of the Pension Fund's committees and, where necessary, establish minimum standards and procedures for the respective committees;

e) require the Governing Board of the Pension Fund to create committees;

f) in the event of detection of a significant violation, dismiss the Executive Director of the Pension Fund from office;

g) establish the suitability criteria for the Executive Directors of the Pension Fund and approve the appointment of the Executive Directors of the Pension Fund;

h) establish the minimum permissible rating or additional requirements for the financial and non-financial instruments, or for the issuers of those financial instruments in which the Pension Fund may invest;

i) in the event of detection of a significant violation committed by the Pension Fund, give it a binding instruction and set a reasonable period for the elimination of that violation;

j) implement a temporary special administration regime for the Pension Fund in accordance with the Law of Georgia on Funded Pension and the procedure established by it;

k) establish additional regulatory rules for the specialised depositary that provides services to the Pension Fund. These rules may concern the capital of the specialised depositary, the experience of its personnel, technical and software support, or any other matter that the National Bank deems necessary;

l) recognise a specialised depositary and an asset management company licensed by another state in accordance with the procedure established by it;

m) for the management of pension assets, authorise the licensed asset management company (companies) and the specialised depositary (depositaries) in accordance with the procedure established by it;

n) establish additional requirements for an asset management company (companies) registered/licensed in Georgia and outside Georgia;

o) conduct on-site inspections of the Pension Fund, the specialised depositary and the asset management company (companies) in accordance with the Law of Georgia on Funded Pension and other legislative and subordinate normative acts of Georgia;

p) provide the Pension Fund in writing with information (including confidential information) on the deterioration or possible deterioration of the financial or organisational condition of the specialised depositary;

q) consider and issue legal acts related to the regulation of the Pension Fund's activities in accordance with the legislation of Georgia;

r) perform the functions of a specialized depositary in accordance with the Law of Georgia "On Accumulative Pension";

s) determine and apply appropriate non-monetary sanctions to the Pension Fund in the cases determined by it and in accordance with the established procedure;

t) exercise other powers provided for by the Law of Georgia "On Accumulative Pension".

Organic Law of Georgia No. 3264 of 21 July 2018 – website, 06.08.2018.

Organic Law of Georgia No. 3610 of 1 November 2023 – website, 20.11.2023.

Organic Law of Georgia No. 4326 of 27 June 2024 – website, 12.07.2024.

Article 52⁴. Supervision of an investment fund and an asset management company🔗

The National Bank shall be entitled to:

a) supervise the activities of an investment fund, carry out the authorisation or registration of an investment fund established in Georgia, recognise a foreign investment fund, as well as revoke the authorisation, registration or recognition of an investment fund. Supervision also includes the inspection and regulation of an investment fund, the issuance of written instructions to it, the imposition of additional requirements, restrictions and sanctions;

b) supervise the activities of an asset management company, carry out the licensing or registration of an asset management company established in Georgia, recognise a foreign asset management company, as well as withdraw the licence of an asset management company, revoke its registration or recognition. Supervision also includes the inspection and regulation of an asset management company, the issuance of written instructions to it, the imposition of additional requirements, restrictions and sanctions;

c) regulate the relations arising from the issuance and circulation of units by an investment fund, ensure the detection, prevention and suppression of violations in the field of issuance and circulation of the said units;

d) establish additional regulatory rules for a specialised depositary that provides services to an investment fund or an asset management company. These rules may concern the capital of the specialised depositary, the experience of personnel, technical or software support and other matters;

e) establish, amend and repeal the rules relating to the regulation of an investment fund and an asset management company and supervise their implementation;

f) establish the rules for the liquidation of an investment fund and an asset management company and the appointment of a temporary administrator and the exercise of powers by the latter;

g) impose a monetary fine on an investment fund, an asset management company, a specialised depositary and other persons. The amount of the monetary fine and the procedure for its imposition shall be determined by a normative act of the National Bank. The amount of the monetary fine shall be transferred to the State Budget of Georgia;

h) exercise other powers determined by the Law of Georgia "On Investment Funds".

Organic Law of Georgia No. 6816 of 14 July 2020 – website, 22.07.2020.

Article 52⁵. Supervision of a virtual asset service provider🔗

1. The National Bank shall be authorized to:

a) supervise the activities of a virtual asset service provider. Supervision includes registration and deregistration of a virtual asset service provider, inspection and regulation, issuance of written instructions, imposition of additional requirements, restrictions and sanctions;

b) request and receive information on the sources of origin of the capital of a virtual asset service provider, as well as on the direct owners and beneficial owners of its significant share (including on the origin of property and/or funds);

c) establish by legal act requirements for the owner/owners of a significant share of a virtual asset service provider;

d) determine by legal act the suitability criteria for the administrator/administrators of a virtual asset service provider;

e) inspect on-site and/or remotely the compliance of a virtual asset service provider with the requirements of Georgian legislation and/or the requirements established by it, conduct an audit of accounting documents, reporting components and other materials, as well as request and, within its competence, receive from it any (including confidential) information in the form determined by it;

f) suspend or restrict, for a virtual asset service provider and/or a representative of the financial sector that, under the legislation regulating activities, is authorized to carry out virtual asset services, the carrying out of certain types of activities/operations (including by types of virtual assets), as well as business relations with another virtual asset service provider/providers that pose increased risks related to money laundering and terrorist financing and/or the risk of circumvention of international financial sanctions, impede the traceability of executed transactions and/or the exercise of supervision;

g) determine by legal act the accompanying information for the transfer of a virtual asset;

h) impose a sanction (including a monetary fine) on a virtual asset service provider and the provider's administrator for violation of this Law and the legal acts of the National Bank, in accordance with the procedure established by it;

i) determine the rules for regulation of a virtual asset service provider, including, depending on the category of virtual asset service, the requirements to be fulfilled by the virtual asset service provider;

j) determine by legal act the minimum amount of supervisory capital of a virtual asset service provider and the calculation rules, as well as criteria and requirements for capital and assets (including virtual assets);

k) establish for a virtual asset service provider standards for the custody of virtual assets and for risk management (including operational and cybersecurity risks) and require the provision of a common risk management framework and the effectiveness of internal control;

l) issue relevant legal acts for the purpose of protecting consumer rights;

m) release a virtual asset service provider, for a certain period and/or under a condition, from the obligation to comply with the norms established by it;

n) determine by a legal act the rules for the liquidation of a virtual asset service provider;

o) establish additional requirements by a normative act.

2. A virtual asset service provider shall be obliged to undergo registration with the National Bank and to satisfy the requirements established by the National Bank. The rules for registration with the National Bank, for the cancellation of registration and for the regulation of a virtual asset service provider shall be determined by a normative act of the National Bank.

3. It shall be inadmissible for virtual asset services to be provided by a person who is not a virtual asset service provider registered by the National Bank or a representative of the financial sector which, under the legislation regulating its activity, has been granted the authority to provide virtual asset services.

4. A virtual asset service provider shall be prohibited from carrying out any activity other than the provision of virtual asset services, auxiliary activities necessary for the provision of such services, and the exchange of its own virtual assets.

5. The amount of the monetary fine provided for by subparagraph „h“ of paragraph 1 of this Article shall be transferred to the State Budget of Georgia.

Organic Law of Georgia of 9 September 2022 No. 1790 – website, 23.09.2022.

Organic Law of Georgia of 9 December 2025 No. 1141 – website, 12.12.2025.

Article 52⁶. Supplementary supervision🔗

The National Bank shall be entitled to:

a) carry out supplementary supervision in accordance with the Law of Georgia “On Supplementary Supervision of Regulated Entities Belonging to a Financial Conglomerate”;

b) when carrying out the supplementary supervision defined by this Article, together with the relevant supervisory authorities, adopt the decisions/measures provided for by the Law of Georgia “On Supplementary Supervision of Regulated Entities Belonging to a Financial Conglomerate”, carry out the relevant measures, as well as issue normative and individual administrative-legal acts in accordance with the same Law;

c) exercise other powers provided for by the Law of Georgia “On Supplementary Supervision of Regulated Entities Belonging to a Financial Conglomerate”.

Organic Law of Georgia of 29 November 2023 No. 3773 – website, 19.12.2023.

Article 52⁷. Supervision of investment funds and asset management companies🔗

[Article 527. Supervision of a securitisation special purpose entity (shall enter into force from 1 January 2027)]

The National Bank is authorised to:

a) supervise the activities of authorised securitisation special purpose entities, and compliance by non-authorised securitisation special purpose entities, institutional investors, original creditors and initiators with the requirements provided for by Article 19(1) and (2), Article 21(1)-(4), Article 23(1)-(4), and Articles 24 and 26 of the Law of Georgia “On Conversion into Securities”; carry out the registration of a securitisation special purpose entity; cancel the authorisation of a securitisation special purpose entity. The exercise of supervision also includes, in accordance with the Law of Georgia “On Conversion into Securities”, inspection and regulation, issuance of written instructions, and imposition of additional requirements, restrictions and sanctions;

b) establish the procedure for carrying out the liquidation of an authorised securitisation special purpose entity;

c) impose a monetary fine on a securitisation special purpose entity, an institutional investor, an original creditor and an initiator. The amount of the monetary fine and the procedure for its imposition shall be determined by a normative act of the National Bank. The amount of the monetary fine shall be transferred to the State Budget of Georgia;

d) exercise other powers determined by the Law of Georgia “On Conversion into Securities”.

Organic Law of Georgia No. 3944 of 15 December 2023 – website, 27 December 2023.

Organic Law of Georgia No. 1465 of 1 April 2026 – website, 6 April 2026.

[Article 52⁸. Supervision of the activities of a factoring company and a factoring platform and confidentiality of information

1. The National Bank is authorised to:

a) supervise the activities of a factoring company and a factoring platform. Supervision includes the registration and cancellation of registration, inspection and regulation, issuance of written instructions, and imposition of additional requirements, restrictions and sanctions of a factoring company and a factoring platform;

b) request and receive information about the sources of origin of the capital of a factoring company and a factoring platform and about the direct owners and beneficial owners of its significant share (including information about the origin of property and/or funds);

c) establish by a legal act requirements for the holders of a significant share in a factoring company and the holders of a significant share in a factoring platform;

d) inspect a factoring company and a factoring platform, conduct an audit of accounting documents, reporting components and other materials, and, within the scope of its competence, receive from them any information (including confidential information) in the form determined by it;

e) to suspend or restrict certain types of operations and/or the attraction of funds for a factoring company and a factoring platform, to prohibit the distribution of profit, the accrual and payment of dividends, an increase in remuneration for labour, the payment of bonuses and other similar remuneration, to require the attraction of additional capital;

f) to determine by a legal act the suitability criteria for the administrators of a factoring company and the partners/shareholders holding a significant share, and for the administrators of a factoring platform and the partners/shareholders holding a significant share;

g) to impose a monetary fine on a factoring company and a factoring platform, to suspend the signing authority of the administrators of the factoring company and the factoring platform, to impose a monetary fine on them and to require their dismissal from their positions;

h) to determine by a legal act the rules for the formation of the capital of a factoring company and the amount of the capital of a factoring platform and the rules for its formation.

2. The rules for the registration and cancellation of registration of a factoring company and a factoring platform by the National Bank, the amount of the monetary fine and the rules for its imposition shall be determined by the normative acts of the National Bank. The amount of the monetary fine shall be transferred to the State Budget of Georgia.

3. The National Bank shall be entitled, in accordance with the procedure established by it, to verify the compliance by a factoring company and a factoring platform with the requirements defined by the “Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)”.

4. A factoring company and a factoring platform shall be obliged to protect the confidentiality of information. Information may be provided only to the tax authority on the basis of a court judgment provided for by the Administrative Procedure Code of Georgia and the “Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)”.

5. Information on persons held by a factoring company and a factoring platform (information on any transaction, performed operation, existing debt or balance) may be provided only to the parties to the respective transaction and their authorised representatives, the National Bank, the commission for the review of disputes existing under the National Bank, in the cases determined by the legislation of Georgia – to the Financial Monitoring Service of Georgia, and, when carrying out an inspection provided for by the Law of Georgia “On Personal Data Protection” – to the State Audit Office. Any information on a person shall be provided to other persons only on the basis of a relevant court judgment or the prior written consent of the person.

6. Courts and investigative bodies and tax services shall be prohibited from transferring information to other bodies, including the mass media, before the court delivers the relevant judgment, as well as from publicly using this information, except for the case provided for by paragraph 4 of this article, when the information is transferred on the basis of the "Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)". (shall enter into force from 1 January 2027)

Organic Law of Georgia No. 1465 of 1 April 2026 – website, 06.04.2026

Article 53. (removed)🔗

Organic Law of Georgia No. 1274 of 20 September 2013 – website, 02.10.2013

Organic Law of Georgia No. 2465 of 29 May 2014 - website, 02.06.2014

Article 54. (removed)🔗

Organic Law of Georgia No. 1274 of 20 September 2013 – website, 02.10.2013

Organic Law of Georgia No. 2465 of 29 May 2014 - website, 02.06.2014

Article 55. (removed)🔗

Organic Law of Georgia No. 1274 of 20 September 2013 – website, 02.10.2013

Organic Law of Georgia No. 2465 of 29 May 2014 - website, 02.06.2014

Article 55¹. Objectives of resolution of a commercial bank and resolution powers of the National Bank🔗

1. The National Bank is entitled to carry out, directly or through a special manager, the resolution of a commercial bank licensed in Georgia and of a branch of a foreign bank. In the resolution process, the National Bank is guided by the following resolution objectives:

a) ensuring the continuity of the critical functions of the commercial bank;

b) avoiding a significant negative impact on the stability of the financial system;

c) protection of budgetary and state funds;

d) protection of insured deposits in accordance with the Law of Georgia on the Deposit Insurance System;

e) protection of customers' funds and assets.

2. The National Bank is entitled to establish by a legal act the list and/or criteria of the critical functions of a commercial bank provided for by subparagraph „a“ of paragraph 1 of this Article.

3. The resolution objectives defined by paragraph 1 of this Article are of equal importance. The National Bank takes all measures within the resolution regime to ensure the achievement of the resolution objectives, taking into account the specific circumstances characteristic of each case. In accordance with the resolution objectives, the National Bank ensures, to the extent possible, the minimisation of resolution costs and losses of creditors.

4. The National Bank is entitled, in order to ensure the achievement of the resolution objectives defined by paragraph 1 of this Article, to issue legal acts, give written instructions, impose additional requirements, develop resolution plans for a commercial bank, administer the resolution fund, introduce a resolution regime in respect of a commercial bank and, within that regime, exercise the resolution powers provided for by the legislation of Georgia.

5. The National Bank is entitled, for the exercise of its resolution powers, within the scope of its competence, to request and receive from any person any information (including confidential information).

6. A commercial bank and any other person shall comply with the instructions, directions, requirements and restrictions of the National Bank established within the resolution regime, and shall also assist the National Bank in achieving the resolution objectives. Where necessary, law enforcement bodies shall provide the National Bank with appropriate assistance.

7. The National Bank shall publish the decision on the introduction of the resolution regime in the Legislative Herald of Georgia. Other information on the said decision shall be published on the official website of the National Bank in compliance with confidentiality rules.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Article 55². Exercise of Resolution Powers of the National Bank🔗

1. The National Bank shall be authorized to adopt a decision on the introduction of a resolution regime and, after adopting this decision, to exercise all resolution powers necessary to achieve the resolution objectives, including:

a) exercise full control over a commercial bank under resolution regime in accordance with the procedure established by this Law and the Law of Georgia “On the Activities of Commercial Banks”, including exercising full powers of all bodies of the commercial bank;

b) in cases provided for by the Law of Georgia “On the Activities of Commercial Banks”, not to observe the resolution principles defined by subparagraphs “b” and “c” of Article 32 of the same Law;

c) conduct a valuation of the assets and liabilities of a commercial bank under resolution regime;

d) dismiss an employee and administrator of the commercial bank and appoint other persons in their place;

e) adopt a decision on the suspension of any operation, transaction or other activity of the commercial bank;

f) temporarily introduce a moratorium regime with respect to the due liabilities of the commercial bank and/or restrict a party’s ability to exercise the right of early termination in respect of a qualified financial contract concluded with the commercial bank, as provided for by the Law of Georgia “On Financial Collateral, Netting and Derivatives”;

g) apply to a court with a request for suspension of proceedings pending against the commercial bank, in accordance with the procedure established by the Civil Procedure Code of Georgia;

h) effect a merger of the commercial bank with another commercial bank or transfer the commercial bank’s shares into the ownership of another person;

i) transfer the assets and liabilities of the commercial bank in full or in part to a third party (parties). When exercising this power, the National Bank shall ensure that deposits are transferred only to another commercial bank or a temporary bank;

j) write down shares and/or other instruments of supervisory capital and/or convert supervisory capital instruments (except shares) into ordinary shares of the commercial bank or other instruments of ownership;

k) require a commercial bank under resolution regime to issue new shares, other instruments of ownership and/or other instruments of supervisory capital;

l) write down the liabilities of the commercial bank and/or convert them into ordinary shares of the commercial bank or other instruments of ownership;

m) except for the exercise by the commercial bank of the right to terminate a contract on the basis of a contract term, terminate, including by way of netting, any contract concluded by the commercial bank, as well as a derivatives contract;

n) cancel debt instruments and other obligations issued by a commercial bank or change their maturity, interest rate and/or the periodicity/terms of interest payment. This subparagraph shall not apply to secured obligations (including obligations towards creditors of a programme provided for by the Law of Georgia “On Mortgage Covered Bonds”);

o) in accordance with the procedure established by the legislation of Georgia, demand compensation for damage, including received premium, variable remuneration or other similar income, from that shareholder, administrator or other employees of the commercial bank whose action caused damage to the commercial bank;

p) except for an action/transaction carried out on the basis of the Law of Georgia “On Financial Collateral, Netting and Derivatives” and an action/transaction related to a programme provided for by the Law of Georgia “On Mortgage Covered Bonds”, by filing a claim in court, challenge an action carried out or a transaction concluded by an administrator of a commercial bank within 1 year before the introduction of the resolution regime and demand its invalidity, if as a result of this action/transaction a person related to the commercial bank received property benefit at the expense of this commercial bank or enjoyed any advantage, privilege or benefit, which caused damage to the commercial bank or its creditors;

q) for the purpose of effective resolution, conclude a contract at the expense of the commercial bank with an independent auditor, appraiser, lawyer, accountant, consultant and/or another person. The expenses of the service rendered by this person before the introduction of the resolution regime shall be borne by the National Bank;

r) take the necessary measures for the effective management of the temporary bank, develop instructions on the plan for the exit of the temporary bank from the market and agree to the developed plan;

s) issue a legal act on the extension of the requirements related to resolution, established by this Law, to a branch of a foreign bank;

t) issue legal acts for the purpose of exercising the powers provided for by this paragraph.

2. The National Bank is entitled, in order to achieve the purposes of resolution, to exercise the resolution powers defined by this Law and the Law of Georgia “On the Activities of Commercial Banks” jointly or individually, taking into account the specific circumstances characteristic of each case.

3. Notwithstanding the requirements established by the legislation of Georgia and the rules established by the founding documents, contracts and the issue prospectus of the commercial bank, the National Bank and the special manager appointed by it shall exercise the resolution powers without the consent of the shareholders, creditors and debtors of the commercial bank/temporary bank. This rule shall also apply to notification, publication, registration of a document, approval of an issue prospectus by the National Bank and other requirements established by the legislation of Georgia.

4. In order to ensure the continuity of the critical functions of a commercial bank, any third party that provides services of critical importance to a commercial bank shall, upon the request of the National Bank, be obliged to continue providing such services on unchanged terms to a commercial bank under resolution regime, to its successor, and also, by decision of the National Bank, to the acquirer of the commercial bank and/or to a temporary bank. For this purpose, the National Bank may ensure the provision of services by another third party to the acquirer or successor bank or to the temporary bank at the expense of the commercial bank.

5. The National Bank shall be entitled, in order to achieve the purposes of resolution, to amend the founding documents/charter of a commercial bank and to require the registering authority to register the said amendments immediately. The registering authority shall comply with this request immediately.

6. If, in order to achieve the purposes of resolution, it is necessary to remove shares or debt securities from trading on a stock exchange / to temporarily suspend trading in shares or debt securities on a stock exchange, to admit new shares to trading on a stock exchange, to re-admit debt securities reduced to zero to trading on a stock exchange, or to grant consent to the acquisition of a significant share, this shall be carried out under an accelerated/simplified procedure. By decision of the National Bank, the disclosure and reporting requirements provided for by the Law of Georgia on the Securities Market may not be complied with in this process, or their fulfilment may be deferred for a certain period.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019.

Organic Law of Georgia No. 5687 of 20 December 2019 – website, 31.12.2019.

Organic Law of Georgia No. 2137 of 30 November 2022 – website, 16.12.2022.

Article 55³. Liquidation of a Commercial Bank🔗

1. In the event of revocation of a banking license, the National Bank shall initiate the liquidation process of a commercial bank in accordance with the Law of Georgia “On the Activities of Commercial Banks” and the rules established by it.

2. The functions of a liquidator of a commercial bank shall be performed by a person appointed by the National Bank in accordance with the procedure established by the National Bank. The liquidator of a commercial bank shall be accountable to the National Bank. The full powers of all bodies of the commercial bank shall pass to the liquidator of the commercial bank.

3. The liquidator of a commercial bank shall be authorized to sell the assets of a commercial bank in the liquidation regime at a public auction or, by agreement with the National Bank, to choose another form of their realization, to transfer the right of claim to these assets to creditors according to priority, as well as to transfer the said assets and/or obligations and/or part thereof to third parties.

4. The liquidation process of a commercial bank shall not cause damage to the resolution powers applied in respect of the commercial bank (in the event of their application) and to the resolution objectives.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31 December 2019.

Article 55⁴. Temporary state funding🔗

1. For the purpose of financing the resolution process, the Ministry of Finance of Georgia shall provide temporary state funding if this is necessary to ensure the stability of the financial system, the funds accumulated in the resolution fund within the framework of ex-ante contributions by commercial banks licensed in Georgia and branches of foreign banks are not/will not be sufficient, and it is impossible to obtain funding from a non-state source or such funding is not/will not be sufficient. Temporary state funding may be provided only after the shareholders and the creditors defined by subparagraphs „k“–„p“ of paragraph 10² of Article 37¹² of the Law of Georgia on "Activities of Commercial Banks" bear losses first, in the reverse order of the priority of satisfaction of claims established for the liquidation of a commercial bank, taking into account the objectives and principles of resolution.

2. The National Bank shall apply to the Ministry of Finance of Georgia with a request for the provision of the temporary state funding defined by paragraph 1 of this article. This request shall contain a relevant overview of the planned use of resolution instruments and a justification of the need for temporary state funding, including information on the required amount, form and terms of the funding, taking into account the objectives and principles of resolution defined by the legislation of Georgia.

3. If the Ministry of Finance of Georgia agrees to the request established by paragraph 2 of this article, it shall provide temporary state funding in one or several of the following forms:

a) temporary participation in the capital of the bank;

b) acquisition of a share in a commercial bank under resolution regime and/or assumption of obligations arising from instruments of supervisory capital of a commercial bank;

c) allocation of funding in favour of the resolution fund in accordance with the procedure established by Article 55⁵ of this Law;

d) provision of a loan and/or guarantee and/or funding in another form necessary for the purposes of resolution, including in direct form.

4. If the Ministry of Finance of Georgia directly or indirectly acquires a share in the capital of a commercial bank, it shall take all measures so that the commercial bank is managed on adequate commercial and professional grounds. In the case of acquisition by the Ministry of Finance of Georgia of shares of a commercial bank or other instruments of supervisory capital, the commercial bank shall be obliged to develop an action plan that includes the actions necessary for the financial sustainability of the commercial bank in the long term, to which the National Bank shall agree.

5. The Ministry of Finance of Georgia and the National Bank shall determine by a joint legal act the procedure for the provision of temporary state funding.

6. The National Bank and the Ministry of Finance of Georgia, for the purpose of subsequent reimbursement of funds allocated within the framework of temporary state financing, shall impose on commercial banks licensed in Georgia and branches of foreign banks the obligation to make the relevant contribution by transferring it to the resolution fund. The said contribution shall be determined for each commercial bank licensed in Georgia and branch of a foreign bank on the basis of objective and proportionate criteria. The proportionality criterion implies the making of the contribution in proportion to those liabilities that do not include a liability which is at the same time a supervisory capital instrument or an insured deposit. The objectivity criterion includes the risk profile of the commercial bank.

7. The criteria for imposing the contribution provided for by paragraph 6 of this Article and the procedure for making the contribution shall be determined by a joint legal act of the Ministry of Finance of Georgia and the National Bank, which, along with other matters, shall establish the grounds for imposing the contribution, exceptions, the elements of the risk profile, the upper limit of the contribution, and the periodicity and term of its making. The upper limit of the contribution shall be set taking into account the principle that the making of the contribution shall not pose a threat to the liquidity or solvency of the commercial bank.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31 December 2019.

Organic Law of Georgia No. 3949 of 15 December 2023 – website, 28 December 2023.

Article 55⁵. Resolution Fund🔗

1. For the purpose of effectively implementing the resolution process, the National Bank shall open the account defined by Article 32 of this Law – the Resolution Fund.

2. The National Bank shall impose on commercial banks licensed in Georgia and branches of foreign banks the obligation to make the corresponding advance contribution to the Resolution Fund. The said advance contribution shall be determined for each commercial bank licensed in Georgia and branch of a foreign bank on the basis of objective and proportionate criteria. The proportionality criterion implies the making of the advance contribution in proportion to those obligations that do not include an obligation that is simultaneously a supervisory capital instrument or an insured deposit. The objectivity criterion includes the risk profile of the commercial bank.

3. The criteria for imposing the advance contribution and the procedure for making the advance contribution shall be determined by a legal act of the President of the National Bank, which, among other matters, shall establish the grounds for imposing the advance contribution, exceptions, elements of the risk profile, the upper limit of the advance contribution, and the periodicity and term of its making. The upper limit of the advance contribution shall be set taking into account the principle that the making of the advance contribution must not pose a threat to the liquidity or solvency of the commercial bank.

4. The following shall be credited to the Resolution Fund: advance contributions of commercial banks licensed in Georgia and branches of foreign banks; in the case of the provision of temporary state funding – contributions made for the purpose of subsequent reimbursement of the funds allocated within the framework of this funding; loans, guarantees and grants to be provided by the Ministry of Finance of Georgia; income received from the investment activity of the Resolution Fund; as well as financial funds received from other sources within the limits determined by the Law of Georgia on the State Budget. A guarantee issued by the Ministry of Finance of Georgia may be used to secure the obligations of the Resolution Fund.

5. Financial funds credited to the Resolution Fund may be used, inter alia, within the framework of temporary state funding, in the case of granting a loan or guarantee to a commercial bank under resolution regime or to a temporary bank, alienation of shares, assets and/or liabilities of a commercial bank, or application of the temporary bank instrument, for the purpose of compensating the difference between the transferred liabilities and assets, as well as for the purposes of paragraph 12 of Article 37¹⁰ and/or paragraph 4 of Article 37¹¹ of the Law of Georgia on the Activities of Commercial Banks. If necessary, a loan and/or guarantee may be granted, within the framework of the application of the resolution instrument of alienation or merger of the shares, assets and/or liabilities of a commercial bank, to an entity acquiring the shares, assets and/or liabilities of a commercial bank. Financial funds credited to the Resolution Fund may also be used to improve the liquidity of a commercial bank under resolution regime, to cover other expenses related to the resolution process, including expenses related to the administration of the Resolution Fund and the preparation of audited financial statements.

6. The National Bank is entitled to temporarily suspend, for a commercial bank licensed in Georgia or a branch of a foreign bank, the obligation to make advance contributions to the Resolution Fund, if the commercial bank or branch of a foreign bank makes contributions to the Resolution Fund for the purpose of subsequent reimbursement of the monetary funds used within the framework of temporary state funding until such funding is fully repaid.

7. The amounts accumulated in the Resolution Fund as a result of advance contributions by commercial banks licensed in Georgia and branches of foreign banks must reach the target amount of the Resolution Fund, which is 3 percent of the total volume of insured deposits determined by the Law of Georgia on the Deposit Insurance System.

8. A commercial bank licensed in Georgia or a branch of a foreign bank shall be obliged to make, on a monthly basis, no later than the 15th day of the month following the respective month, an advance contribution to the Resolution Fund in accordance with this Law and the legal act of the President of the National Bank provided for by paragraph 3 of this Article.

9. The administration of the Resolution Fund shall be carried out by the National Bank. The National Bank is entitled to transfer the Resolution Fund to a Legal Entity of Public Law − the Deposit Insurance Agency for administration. The National Bank and the Legal Entity of Public Law − the Deposit Insurance Agency shall not be liable for obligations arising from the use of the Resolution Fund. The application of legal restrictions provided for by Georgian legislation with respect to the assets of the Resolution Fund, including pledge, attachment and/or enforcement, shall be inadmissible.

10. The National Bank shall be obliged to prepare the financial statements of the resolution fund independently of the financial statements of the National Bank. The financial statements of the resolution fund shall be audited by an independent auditor. The value of the resolution fund's assets shall be recorded in compliance with international financial reporting standards.

11. The matters of administration of the funds accumulated as a result of the establishment of the resolution fund and the making of advance contributions to the resolution fund shall be determined by the legal act of the President of the National Bank provided for by paragraph 3 of this Article. This legal act may also determine the matters of investment of the funds accumulated as a result of the making of advance contributions to the resolution fund, while the matters of administration and investment of temporary state funding, as well as of the contributions made to the resolution fund for the purpose of subsequent reimbursement of the funds used within the framework of temporary state funding, shall be determined by the joint legal act provided for by paragraph 5 of Article 55⁴ of this Law. This joint legal act may also determine the rules for obtaining the consent necessary for certain transactions, for establishing their reporting requirements, and for the recovery of the relevant funds by the Ministry of Finance of Georgia.

12. In the case of administration of the resolution fund by the Legal Entity of Public Law − the Deposit Insurance Agency, the National Bank shall be entitled, within the scope of its competence, to request from it and receive any information (including confidential information) related to the resolution fund.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019

Organic Law of Georgia No. 3949 of 15 December 2023 – website, 28.12.2023

Article 55⁶. Preparation for crisis situations and crisis management🔗

1. For the purpose of promoting the stable functioning of the financial system, a Financial Stability Interagency Committee (hereinafter – the Committee) shall be established, which shall be responsible for developing mechanisms for the management of crisis situations and financial crisis. The Committee shall be composed of the Minister of Finance of Georgia, the President of the National Bank, the Head of the Legal Entity of Public Law – the Deposits Insurance Agency, and the Head of the Legal Entity of Public Law – the State Insurance Supervision Service of Georgia. By a decision of the Committee, representatives of other state/administrative bodies may also become members of the Committee. The Committee shall be chaired and represented by the Minister of Finance of Georgia, and in his absence – by the person performing his duties. A member of the Committee shall be entitled to delegate to another person the authority to participate in a session of the Committee.

2. The Committee shall hold a session at least once a year or upon a request of the National Bank.

3. The functions of the secretariat of the Committee shall be performed by the National Bank. Unless otherwise determined by the charter of the Committee, the members of the Committee shall adopt a decision unanimously.

4. The members of the Committee shall be obliged, in order to achieve the purpose provided for by paragraph 1 of this article, within the scope of the powers conferred by the legislation of Georgia, to cooperate with one another to the maximum extent, in compliance with the principle of independence.

5. The National Bank shall be obliged to:

a) notify the Committee about potential threats and risks to financial stability and provide it with the information at its disposal that is necessary for the Committee;

b) notify the Committee in a timely manner about the need for a resolution of a commercial bank, temporary state funding and/or a lender of last resort loan of the National Bank provided for by paragraph 3 of Article 33 of this Law.

6. The members of the Committee shall provide the Committee with all necessary information (including confidential information), among others, information about identified risks that may be important for the functioning of the Committee. The members of the Committee shall protect the confidentiality of information in the manner established by the legislation of Georgia.

7. The activities of the Committee shall be regulated by a charter adopted by the Committee on the basis of the joint agreement of all its members. The charter of the Committee shall regulate the procedural issues of the exchange of information by the members of the Committee, as well as the rules for the joint identification and analysis of systemic risks, the assessment of systemic risk scenarios, the rules for the ex-ante assessment and management operational planning of crisis situations, the procedural rules for conducting relevant simulations, and other issues related to the functioning of the Committee.

8. The Committee/the secretariat of the Committee shall, together with the annual report of the National Bank, publish annually a report on the activities of the Committee.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019.

Article 55⁷. Commercial bank that is an issuer of mortgage bonds and is in the resolution/liquidation regime🔗

If a commercial bank in the resolution/liquidation regime is at the same time an issuer of mortgage bonds as defined by the Law of Georgia "On Mortgage-Secured Bonds" or a debtor of a refinancing bank, the resolution/liquidation process in respect of that commercial bank shall be conducted taking into account the special provisions established by the same Law.

Organic Law of Georgia No. 2137 of 30 November 2022 – website, 16.12.2022

Article 56. Financial year of the National Bank🔗

The financial year of the National Bank begins on the first day of January and ends on the last day of December.

Article 57. Accounting🔗

The National Bank shall maintain reporting, its operations and other documentation necessary for reflecting its financial position in accordance with International Accounting Standards and International Financial Reporting Standards.

Article 58. Financial reporting of the National Bank🔗

The National Bank shall prepare financial statements for each financial year. The statements shall include a balance sheet, a profit and loss statement, a statement of changes in equity, a statement of cash flows and explanatory notes related thereto.

Article 59. Audit of the National Bank's reporting🔗

1. The audit of the National Bank's reporting shall be performed by an independent audit firm elected by the Parliament of Georgia.

2. In order to conduct the audit of the National Bank's financial statements, the Parliament of Georgia shall, not later than 1 December, elect 1 audit firm (auditor) from the world's 4 largest audit firms for a term of not more than 3 years. The selected audit firm shall have the opportunity to conduct the audit of the annual financial statements continuously only three times.

3. The State Audit Office shall verify only the administrative and capital expenditures of the National Bank.

Organic Law of Georgia No. 6551 of 22 June 2012 – website, 29.06.2012

Organic Law of Georgia No. 2465 of 29 May 2014 – website, 02.06.2014

Organic Law of Georgia No. 2795 of 27 November 2014 – website, 02.12.2014

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11.01.2018

Organic Law of Georgia No. 3904 of 6 December 2018 – website, 14.12.2018

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023

Organic Law of Georgia No. 545 of 13 May 2025 – website, 14.05.2025

Article 60. Submission and publication of the National Bank's balance sheet reporting and documents🔗

1. The National Bank prepares and, within the shortest possible period, no later than 10 working days, submits to the Parliament of Georgia and publishes the unaudited balance sheet statement as of the last working day of the reporting month.

2. No later than 4 months after the end of the financial year, the National Bank publishes and submits to the Parliament of Georgia for approval the audited financial statements of the past year and the report defined by Article 61 of this Organic Law.

3. In addition to the financial statements and documents indicated in paragraphs 1 and 2 of this Article, the National Bank may publish other reports and studies on financial and economic matters, the publication of which it considers appropriate.

Article 61. Determination of and reporting on the main directions of monetary-credit and currency policy🔗

1. The National Bank independently establishes the inflation target.

2. No later than 1 October of each year, the National Bank submits to the Parliament of Georgia a draft of the main directions of monetary-credit and currency policy for the next three years.

3. The Parliament of Georgia approves the main directions of monetary-credit and currency policy by the end of the current year.

4. If the Parliament of Georgia has not approved the draft of the main directions of monetary-credit and currency policy submitted by the National Bank of Georgia, the National Bank acts within the framework of the draft developed by it.

5. The draft of the main directions of monetary-credit and currency policy shall indicate the inflation target, the main monetary policy instruments that the National Bank will use to achieve the target inflation, and an overview of possible risks.

6. Annually, no later than 4 months after the end of the financial year, the National Bank submits to the Parliament of Georgia a report on the implementation of monetary-credit, currency and supervisory policy. In this report, the National Bank reflects the compliance of the pension fund's activity with the Law of Georgia "on Accumulated Pension" and with the requirements of the National Bank. The Parliament of Georgia approves the said report.

Organic Law of Georgia No. 4188 of 3 September 2015 – website, 10.09.2015.

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017.

Organic Law of Georgia No. 3264 of 21 July 2018 – website, 06.08.2018.

Organic Law of Georgia No. 4326 of 27 June 2024 – website, 12.07.2024.

Article 62. Clearing and payment contracts🔗

The National Bank is entitled to conclude clearing and payment contracts or any other contract for the same purpose with state and private central clearing institutions of foreign countries, both in its own name and in the name and on the instruction of Georgia.

Article 63. Mechanism of clearing, settlement, payment services and payment systems🔗

1. The National Bank is entitled, at its discretion, to develop and issue legal acts regulating clearing, settlement, payment services and payment systems, to establish the relevant rules and requirements, to organise the creation and introduction of payment systems in Georgia, to manage and ensure the servicing and administration of these systems, to assist other banks in the creation of payment systems, to supervise the payment systems operating in Georgia and payment services.

2. The National Bank is entitled to admit securities issued in Georgia into its securities settlement and depositary system, to ensure the relevant settlement through this system, to open accounts for the Government of Georgia, a foreign government, a central bank, a central depositary, an account operator, a person providing custodial services and another financial institution for the purposes of holding securities and settlement of transactions carried out with securities, and for this purpose to determine the relevant rules and criteria.

3. The National Bank has the right, in the cases provided for by the legislation of Georgia, to exercise the powers of a specialised depositary of voluntary private pension schemes and investment funds.

Organic Law of Georgia of 23 December 2017 No. 1894 – website, 11.01.2018.

Organic Law of Georgia of 28 June 2023 No. 3354 – website, 18.07.2023.

Organic Law of Georgia of 16 November 2023 No. 3730 – website, 07.12.2023.

Article 64. Preferential and unconditional right of the National Bank🔗

1. The National Bank has a preferential and unconditional right to satisfy any claim, upon the occurrence of the repayment term, at the expense of the funds in the debtor's accounts, cash balances, or material assets owned by the debtor. An exception to this rule is the funds held in the mandatory reserves account with the National Bank.

2. The National Bank may exercise the preferential right to transfer the available funds to its account and, by way of selling other assets at auction, withhold the amounts due from the proceeds after deducting the expenses related to the sale. The rules for conducting the auction shall be established by the National Bank. In the event the auction is declared failed, the National Bank is entitled to satisfy the claim by directly taking the property into ownership. The relevant bodies shall be obliged to provide the National Bank with the relevant document confirming ownership of such property.

3. The powers provided for by paragraphs 1 and 2 of this article may not be exercised in one of the following cases:

a) by decision of the Board of the National Bank, in respect of a supervised entity in liquidation or temporary administration regime, as well as a commercial bank in resolution regime;

b) by decision of the National Bank, within the amount provided for by paragraph 16 of Article 48 of this Law, for the uninterrupted conduct of the liquidation process of a supervised entity.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31.12.2019.

Organic Law of Georgia No. 2627 of 22 February 2023 – website, 10.03.2023.

Article 64¹. Protection of consumer rights🔗

1. The National Bank may, by a relevant legal act, establish for a representative of the financial sector and a lending entity:

a) rules different from those provided for by paragraph 4, paragraph 5 (except for interest), paragraph 7 and paragraph 8 (for the early repayment commission) of Article 625 and paragraph 8 of Article 868 of the Civil Code of Georgia;

b) the rules for the protection of consumer rights (including the consumer's refusal of the contract and the provision of necessary information to the consumer) when granting a loan/bank credit or attracting funds;

c) rules different from those provided for by paragraph 3 of Article 276, paragraph 2¹ of Article 300 and paragraph 1² of Article 301 of the Civil Code of Georgia and/or additional rules.

1¹. The National Bank is entitled to establish for a virtual asset service provider the rules for the protection of consumer rights (including the provision of necessary information to the consumer).

2. Based on the powers provided for by this Law, the National Bank shall ensure compliance with (fulfilment of) the requirements determined by the Law of Georgia "On the Protection of Consumer Rights". For this purpose, the National Bank is entitled to issue legal acts, carry out relevant measures, issue written instructions, establish additional requirements and relevant restrictions, and apply supervisory measures and/or sanctions.

Organic Law of Georgia No. 238 of 29 December 2016 – website, 13.01.2017

Organic Law of Georgia No. 3320 of 21 July 2018 – website, 07.08.2018

Organic Law of Georgia No. 1477 of 12 April 2022 – website, 19.04.2022

Organic Law of Georgia No. 1141 of 9 December 2025 – website, 12.12.2025

Article 64². Commission reviewing disputes in the field of the payment system and payment services existing at the National Bank🔗

1. Disputes between a payment service user and a payment service provider which relate to the rights and obligations arising from this Law, the Law of Georgia “On the Payment System and Payment Services”, as well as from subordinate normative acts adopted on their basis, shall be reviewed by the independent dispute review commission existing at the National Bank (hereinafter – the dispute review commission). The basis for the dispute review commission to commence review of a dispute shall be the submission by the payment service user of a complaint against the payment service provider to the dispute review commission and its acceptance for proceedings.

2. When reviewing a complaint, the dispute review commission shall be guided by the principles of adversarial proceedings, fairness, transparency, objectivity, impartiality and equality of the parties.

3. The dispute review commission shall review a dispute free of charge.

4. The rules for the establishment and operation of the dispute review commission, its organisational structure, the rules for relations with the parties, as well as matters related to the review of a dispute and the adoption of a decision shall be regulated by the Law of Georgia “On the Payment System and Payment Services”, the legal acts of the National Bank and other legislative and subordinate normative acts of Georgia.

5. The dispute review commission shall be entitled, in connection with a dispute, to apply to the relevant structural unit/units of the National Bank for consultation and/or to receive information (including confidential information).

6. The dispute review commission shall be entitled, on its own initiative, to require the party/parties to the dispute to submit additional information and/or evidence (including confidential). The dispute review commission shall also have the right, for the exercise of its powers, to require the necessary information and/or evidence (including confidential) from any natural person and/or legal entity under private law, as well as from an organisational formation lacking the status of a legal entity.

7. In the event of failure to submit the information and/or evidence required on the basis of paragraph 6 of this Article, the dispute review commission shall be entitled to fine the violator, except the user (complainant).

Organic Law of Georgia No. 1810 of 9 September 2022 – website, 23.09.2022.

Article 65. Activities Prohibited for the National Bank🔗

Except for special cases directly provided for by this Organic Law, the National Bank shall be prohibited from:

a) providing financial assistance in any form, including by way of direct lending, interest-free loan or purchase of the credit of a conditional obligation, equity participation in a credit, or by assuming loan or conditional obligations on its own account through other obligations;

b) carrying out commercial activity, acquiring shares;

c) acquiring, by way of purchase or lease or in any other manner, full or partial right to immovable property, except in cases where the use of a building is necessary or expedient for administrative activity, for conducting operations, for other circumstances related to the performance of the tasks provided for by this Organic Law;

d) granting a loan to the Government of Georgia and state institutions, except to a Legal Entity of Public Law – the Deposit Insurance Agency.

Law of Georgia Organic Law of 17 May 2017 No. 858 - website, 02.06.2017.

Article 66. Special Powers of the National Bank🔗

1. The National Bank shall be entitled to:

a) grant credits, acquire the right of equity participation or participate in any form in the activity of any organisation whose work is related to the performance of the functions and tasks of the National Bank;

b) determine the list of those servants of the National Bank system who have the right to carry firearms in accordance with the procedure established by law;

c) carry out the production, purchase and sale of gold bars;

d) conduct, in accordance with the procedure established by it, operations with gold and/or financial instruments related to gold. The Law of Georgia "On the Securities Market" shall not apply to these financial instruments, and their registration and circulation shall be carried out in accordance with the procedure established by the National Bank;

e) carry out the production, purchase and sale of items necessary for the popularisation of the national currency;

f) manage the Deposit Insurance Fund;

g) where necessary, on the basis of a decision of the Board of the National Bank, provide material and technical assistance to the Legal Entity of Public Law – the Deposit Insurance Agency.

2. For the purpose of subparagraph „g“ of paragraph 1 of this Article, monetary assistance shall not be considered material and technical assistance, except for the loan provided for by paragraph 4 of Article 31 of this Law.

Law of Georgia Organic Law of 23 March 2010 No. 2828 - LHG I, No. 19, 13.04.2010, Art. 102

Law of Georgia Organic Law of 1 July 2011 No. 5001 - website, 15.07.2011.

Law of Georgia Organic Law of 20 December 2011 No. 5527 - website, 28.12.2011.

Law of Georgia Organic Law of 25 May 2012 No. 6320 – website, 12.06.2012.

Law of Georgia Organic Law of 17 May 2017 No. 858 - website, 02.06.2017.

Article 66¹. National Payments Council🔗

1. The National Bank is authorized, for the purpose of developing the payment system and the field of payment services, to establish the National Payments Council, which shall facilitate discussion and close cooperation among representatives of this field, users, and other interested persons connected with this field. The National Payments Council is authorized to coordinate market initiatives and the formation of common approaches for market development, as well as to facilitate the introduction of innovations in this field.

2. Employees of the National Bank, invited persons, and other interested persons may participate in the National Payments Council. The composition of the National Payments Council and the rules of its activity shall be determined by a legal act of the President of the National Bank.

Organic Law of Georgia No. 1810 of 9 September 2022 – website, 23.09.2022.

Article 67. Regulatory Provisions🔗

1. The National Bank, in the performance of its duties, enjoys the right of autonomous (independent) regulation. The National Bank maintains a public register of normative acts, directives and instructions.

2. The formats and standards determined by the National Bank in accordance with the relevant procedure in matters of electronic settlement accounts and information security shall be transferred to a commercial bank, a microbank and a non-bank deposit institution on an individual basis. They shall be effective from the date determined by the National Bank.

3. The National Bank, if there is no need for immediate entry into force of a normative act, sends the draft normative act to the Ministry of Justice of Georgia for legal expertise, except for cases determined by a normative act of the Minister of Justice of Georgia.

4. The need for immediate entry into force of a normative act shall be determined by the adopting (issuing) body (official). A normative act issued by the National Bank shall be transferred to the Ministry of Justice of Georgia immediately, but not later than the next working day, for the assignment of a state registration code. A normative act to be put into immediate effect shall be in force from the date indicated therein.

5. In the case of application of the norm on immediate entry into force of a normative act, the grounds for the immediate entry into force of this act shall be indicated in the said normative act by a separate article.

6. The National Bank is entitled, in the course of its activities, to create, receive, send, store and issue in material and/or electronic form (including in the form of archival material) any document that may entail legal consequences, as well as to use an electronic document management system and an electronic signature and/or a qualified electronic signature. An electronic document and its printout shall have the same legal force as a material document. For the purposes of this paragraph, the National Bank is entitled to determine by a legal act the policy for the use of the electronic document management system and electronic signature for the purposes of its own activities.

Organic Law of Georgia of 20 December 2011 No. 5527 – website, 28 December 2011.

Organic Law of Georgia of 10 April 2012 No. 6017 – website, 30 April 2012.

Organic Law of Georgia of 3 September 2015 No. 4188 – website, 10 September 2015.

Organic Law of Georgia of 10 March 2017 No. 436 – website, 22 March 2017.

Organic Law of Georgia of 21 April 2017 No. 668 – website, 10 May 2017.

Organic Law of Georgia of 23 December 2017 No. 1894 – website, 11 January 2018.

Organic Law of Georgia of 22 February 2023 No. 2627 – website, 10 March 2023.

Article 68. Administration norms🔗

1. The powers conferred on the National Bank by this Law shall be exercised on the basis of the principles of equality and impartiality and shall comply with accepted administration norms.

2. The National Bank shall refrain from using the powers provided for by paragraph 1 of this Article for achieving a purpose that does not correspond to these powers, or from exercising its rights to an extent that exceeds the measures necessary for achieving the relevant legitimate purpose.

3. For the purpose of implementing the provisions of this Law, the decisions of the National Bank shall be subject to the principle of impartiality. Their reasoning shall be objective and rational. All decisions shall be executed in compliance with legal norms and shall serve the intended purposes.

4. In the event of an appeal to a court against an individual administrative-legal act of the National Bank, the burden of proof shall be borne by the claimant in accordance with paragraph 2 of Article 17 of the Administrative Procedure Code of Georgia.

5. In the event of an appeal against an administrative act of the National Bank, suspension of the operation of this act until a final decision on the case is rendered shall be inadmissible, unless the National Bank adopts a different decision.

5¹. In the event of an appeal against a decision of the National Bank, the court shall rely on the qualitative and quantitative assessments made by the National Bank, except where the assessment contains an obvious error/defect.

52. In the event of an appeal against a decision of the National Bank on the introduction of a resolution regime, a decision adopted by the National Bank in the resolution regime, or a decision of the National Bank on the revocation of a banking licence, if the court annuls the said decision, the National Bank may be ordered to compensate only the actual damage incurred, which cannot be compensated from the resolution fund.

6. No current or former employee of the National Bank shall be held personally liable to any person for any action or omission if he committed that action or refrained from committing that action in the conscientious performance of his duties in accordance with the legislation of Georgia. The National Bank shall be obliged, in a dispute arising in connection with the performance of official duties, if the action or omission of its current or former employee was conditioned by the performance of official duties, to protect the interests of the employee (except when the National Bank is conducting a dispute against the employee), which may be expressed by providing the employee with legal services, reimbursement of dispute-related expenses and other measures that the National Bank deems necessary to protect the employee's interests. This paragraph shall apply to a temporary administrator, special manager, liquidator, temporary bank administrator, the program administrator and program liquidator provided for by the Law of Georgia "On Mortgage Secured Bonds" only within the scope of the exercise of powers conferred by the National Bank.

6¹. (Repealed - 10 March 2017, No. 436).

6². (Repealed - 10 March 2017, No. 436).

7. The National Bank shall be represented before the court, other bodies and persons by the President of the National Bank, Vice-Presidents or a civil servant of the National Bank authorized by them, and in a special case – by another person.

8. (Repealed - 10 March 2017, No. 436).

Organic Law of Georgia No. 4188 of 3 September 2015 - website, 10 September 2015.

Organic Law of Georgia No. 436 of 10 March 2017 - website, 22 March 2017.

Organic Law of Georgia No. 1894 of 23 December 2017 – website, 11 January 2018.

Organic Law of Georgia No. 5654 of 20 December 2019 – website, 31 December 2019.

Organic Law of Georgia No. 2137 of 30 November 2022 – website, 16 December 2022.

Article 69. Outstanding indebtedness of the Government of Georgia to the National Bank of Georgia🔗

The outstanding indebtedness of the Government of Georgia to the National Bank of Georgia (credits received and restructured debt obligations), which constitutes state domestic debt, shall be repaid before 16 March 2030 on the basis of an agreement concluded between the Government of Georgia and the National Bank of Georgia, in such a way that annually one part of the indebtedness shall be restructured into a one-year, annually renewable state debt obligation intended for the National Bank of Georgia – a state bond, and the other part – into state bonds of various maturities for open market operations, the repayment of which shall be carried out from the state budgets of Georgia for the respective years.

Article 70. Transitional provisions🔗

1. The Legal Entity of Public Law established under the National Bank of Georgia – the Financial Supervision Agency of Georgia – shall be liquidated on 1 December 2009.

2. The National Bank of Georgia shall be reorganised.

3. The reorganised structural units of the National Bank of Georgia shall exercise the powers of the Financial Supervision Agency of Georgia.

4. The National Bank of Georgia is the legal successor of the Financial Supervision Agency of Georgia.

5. The buildings and structures, technical means and other property on the balance sheet of the Financial Supervision Agency of Georgia shall be transferred to the National Bank of Georgia.

6. The normative acts regulating the financial sector of Georgia shall retain legal force until the National Bank of Georgia issues new normative acts.

7. Licences, permits and effected registrations issued in connection with the activity of the financial sector, which have not been revoked, shall retain legal force.

8. From the entry into force of this Organic Law:

a) the National Bank of Georgia shall ensure the compliance of the legal acts within its competence with this Organic Law;

b) the Government of Georgia shall ensure the compliance of the legislation of Georgia with this Organic Law.

9. The effect of Article 25 of this Organic Law shall not extend to the distribution of the net profit of the National Bank of Georgia for the 2008 financial year, which shall be distributed in accordance with the legislation in force in 2008.

10. From 1 March 2014 to 1 June 2015, the powers of the supervisory body provided for by the Law of Georgia "On Investment Funds" in respect of investment funds shall be exercised by the National Bank of Georgia.

11. (Removed – 09.12.2025, No. 1141).

12. (Removed – 09.12.2025, No. 1141).

13. From 1 January 2019, matters related to the circulation of 1 tetri and 2 tetri denomination coins shall be regulated by a legal act of the Council of the National Bank.

Organic Law of Georgia No. 1828 of 24 December 2013 – website, 28.12.2013

Organic Law of Georgia No. 2211 of 4 April 2014 – website, 08.04.2014

Organic Law of Georgia No. 2954 of 12 December 2014 – website, 23.12.2014

Organic Law of Georgia No. 101 of 16 December 2016 – website, 20.12.2016

Organic Law of Georgia No. 436 of 10 March 2017 – website, 22.03.2017

Organic Law of Georgia No. 3313 of 21 July 2018 – website, 31.07.2018

Organic Law of Georgia No. 1141 of 9 December 2025 – website, 12.12.2025

Article 71. Entry into force of the Law🔗

1. This Organic Law, except Articles 1–69, paragraphs 3–8 of Article 70, shall enter into force upon publication.

2. Articles 1–69 of this Organic Law, paragraphs 3–8 of Article 70 shall enter into force from 1 December 2009.

3. From 1 December 2009, the Organic Law of Georgia of 23 June 1995 "On the National Bank of Georgia" (Bulletin of the Parliament of Georgia, 1994-1995, Nos. 27-30, Art. 642) shall be declared invalid.

President of Georgia M. Saakashvili

Tbilisi,

24 September 2009.

No. 1676–IIs