On Microfinance Organizations

Law of Georgia

On Microfinance Organizations

Article 1. Purpose of the Law🔗

The purpose of this Law is the legal regulation of the activities of microfinance organizations operating in Georgia and the creation of a healthy environment for their development.

Article 2. Definition of the terms used in this Law🔗

1. The terms used in this Law have the following meaning:

a) microleasing – leasing the value of which is determined by the established limit of a microcredit;

b) registration – voluntary registration with the National Bank of Georgia of a legal entity established in accordance with the legislation of Georgia;

c) (removed);

d) significant share – a share of more than 10% of the paid-in capital or declared capital and/or of the voting share/stocks of a microfinance organization held directly or indirectly by a person or a group of partners/shareholders acting jointly, or the ability of a person or a group of partners/shareholders acting jointly to exercise significant influence over the microfinance organization, regardless of the amount of the share in the capital and/or in the voting share/stocks;

e) administrator of a microfinance organization – a member of the supervisory board or of the directorate and/or other persons who directly or indirectly have the authority and responsibility to plan, manage and/or control the activities of the microfinance organization. The list of the respective positions shall be approved by the supervisory board of the microfinance organization;

f) beneficial owner – a person who, on the basis of law or a transaction, receives monetary or other benefit and who is not under an obligation to transfer that benefit to another person, and if the beneficial owner is a legal entity established for non-entrepreneurial (non-commercial) purposes or the owner legal entity has no person holding a significant share – a member of its governing body;

g) group of partners/shareholders acting jointly – a group of partners/shareholders having a close family relationship (first- and second-degree heirs), or partners/shareholders who are connected with each other also by other commercial interests, apart from the microfinance organization;

h) supervisory capital – a type of capital which a microfinance organization creates for the pursuit of the activities of the microfinance organization, for neutralizing expected or unexpected financial losses/damage and for protection against various types of risk;

i) declared capital – capital agreed upon by the partners/shareholders of the microfinance organization and provided for by the charter of the microfinance organization;

j) paid-in capital – the actually contributed part of the declared capital;

k) related person – an administrator, partner/shareholder of a microfinance organization, a person having such a family relationship with them as, in accordance with the Civil Code of Georgia, makes him/her a first- or second-degree heir at law, or a person connected with them by business interests;

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

2. Other terms used in this Law have the meaning established by the legislative acts of Georgia.

Law of Georgia of 14 March 2008 No. 5924 – LHG I, No. 7, 26.03.2008, Art. 44

Law of Georgia No 1682 of 24 September 2009 – LHG I, No 29, 12.10.2009, Art. 165

Law of Georgia No 5528 of 20 December 2011 – website, 28.12.2011

Law of Georgia No 4198 of 3 September 2015 – website, 10.09.2015

Law of Georgia No 442 of 10 March 2017 – website, 22.03.2017

Law of Georgia No 1899 of 23 December 2017 – website, 11.01.2018

Law of Georgia No 1797 of 9 September 2022 – website, 23.09.2022

Law of Georgia No 2604 of 22 February 2023 – website, 10.03.2023

Law of Georgia No 1463 of 1 April 2026 – website, 06.04.2026

Article 3. Microfinance Organization🔗

1. A microfinance organization is a legal entity established in the legal form of a limited liability company or a joint-stock company, which is registered by the National Bank of Georgia on the basis of its application and carries out the activities provided for by this Law under the supervision of the National Bank of Georgia.

2. A microfinance organization shall be required to establish a supervisory board, to which the rules established by the Law of Georgia on Entrepreneurs with respect to the supervisory board of a joint-stock company shall apply.

3. Only a microfinance organization is entitled, in addition to the designation provided for by the Law of Georgia on Entrepreneurs, to include in its company name the term "microfinance organization" or its abbreviation "MISO".

4. When a violation by a microfinance organization of the norms established by the legislation of Georgia is detected, the National Bank of Georgia is entitled to apply the relevant sanction in the manner established by the National Bank of Georgia.

Law of Georgia No 5924 of 14 March 2008 – LHG I, No 7, 26.03.2008, Art. 44

Law of Georgia No 1682 of 24 September 2009 – LHG I, No 29, 12.10.2009, Art. 165

Law of Georgia No 4198 of 3 September 2015 – website, 10.09.2015

Law of Georgia No 442 of 10 March 2017 – website, 22.03.2017

Law of Georgia No 1899 of 23 December 2017 – website, 11.01.2018

Article 4. Microfinance activity🔗

1. A microfinance organization shall be entitled to carry out only the following activities:

a) issuance of micro-loans, including consumer, pawn, mortgage, unsecured, group and other loans (credits) to legal entities and natural persons; issuance of a credit payment card for this purpose;

b) investment in state and public securities;

c) effecting money transfers;

d) performance of the function of an insurance agent;

e) provision of consulting services related to micro-lending;

f) receipt of loans (credits) from resident and non-resident legal entities and natural persons;

f¹) performance of the function of an agent as defined by subparagraph "gg8" of Article 2 of the Law of Georgia "On Payment Systems and Payment Services";

f²) leasing out property for the purpose of carrying out the activities provided for by subparagraphs "a"–"f1" of this paragraph;

f³) in accordance with the procedure established by a legal act of the National Bank of Georgia, where the relevant requirements are met, payment initiation service and/or account information access service in accordance with the Law of Georgia "On Payment Systems and Payment Services";

g) holding shares or stocks of legal entities, the aggregate amount of which shall not exceed 15% of the placed capital of this microfinance organization;

[ g) holding shares or stocks of legal entities, the aggregate amount of which shall not exceed 15% of the placed capital of this microfinance organization. At the same time, a microfinance organization shall be prohibited from holding a participatory interest in a factoring company as defined by the Law of Georgia "On Factoring"; (shall enter into force from 1 January 2027)]

h) other financial services and operations provided for by the legislation of Georgia: micro-leasing, factoring, conclusion of a derivative, currency exchange, issuance, sale and redemption of promissory notes and bonds, as well as other operations related to these financial services and operations;

i) provision of virtual asset services for the benefit of another person in accordance with the Organic Law of Georgia "On the National Bank of Georgia", namely, 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 safekeeping of a convertible virtual asset or of an instrument necessary for its use, which enables control over the virtual asset, and ancillary activities necessary for the provision of this service.

2. A microfinance organization shall be entitled to carry out the activities provided for by this Law only after its registration as a microfinance organization by the National Bank of Georgia, the procedure and conditions of which shall be determined by the National Bank of Georgia.

2¹. A microfinance organisation is entitled, in accordance with the procedure determined by the Legal Entity of Public Law — the State Insurance Supervision Service of Georgia, to perform the insurance agent function provided for by subparagraph „d“ of paragraph 1 of this Article.

3. A microfinance organisation shall be prohibited from accepting deposits from both natural and legal persons.

4. The National Bank of Georgia is entitled to establish for a microfinance organisation the procedure for providing the customer with the information necessary in the course of the provision of services.

5. The National Bank of Georgia is entitled, by written instructions, to establish for a microfinance organisation additional requirements and/or restrictions for carrying out a specific activity.

Law of Georgia No. 5924 of 14 March 2008 – LHG I, No. 7, 26.03.2008, Art. 44

Law of Georgia No. 1682 of 24 September 2009 – LHG I, No. 29, 12.10.2009, Art. 165

Law of Georgia No. 263 of 6 March 2013 – website, 20.03.2013

Law of Georgia No. 356 of 20 March 2013 – website, 04.04.2013

Law of Georgia No. 4198 of 3 September 2015 – website, 10.09.2015

Law of Georgia No. 442 of 10 March 2017 – website, 22.03.2017

Law of Georgia No. 1899 of 23 December 2017 – website, 11.01.2018

Law of Georgia No. 5685 of 20 December 2019 – website, 31.12.2019

Law of Georgia No. 882 of 2 August 2021 – website, 04.08.2021

Law of Georgia No. 1793 of 9 September 2022 – website, 23.09.2022

Law of Georgia No. 1803 of 9 September 2022 – website, 23.09.2022

Law of Georgia No. 1463 of 1 April 2026 – website, 06.04.2026

Article 5. Concept and amount of microcredit🔗

1. A microcredit is a monetary amount issued by a microfinance organisation to a borrower or a group of interconnected borrowers in accordance with the conditions of term, repayment, remuneration and purpose provided for by a loan agreement.

2. The maximum total amount of a microcredit issued by a microfinance organisation to one borrower or a group of interconnected borrowers shall not exceed GEL 200,000 (two hundred thousand).

3. The National Bank of Georgia is entitled, by a normative act, to determine for a microfinance organisation additional requirements regarding microcredit.

Law of Georgia No. 1899 of 23 December 2017 – website, 11.01.2018

Law of Georgia 461 of 16 April 2025 – website, 17.04.2025

Article 6. Capital of a Microfinance Organization🔗

1. For registration of a person as a microfinance organization, the minimum amount of its paid-in capital shall not be less than 1,000,000 (one million) GEL. Paid-in capital shall be contributed only in monetary form.

2. A microfinance organization shall be obliged, throughout the entire period of its activity, not to reduce the minimum amount of paid-in capital provided for by paragraph 1 of this Article.

3. The capital of a microfinance organization shall be increased only in monetary form.

4. The National Bank of Georgia is entitled, by a legal act, to determine for a microfinance organization the amount of supervisory capital and the procedure for its formation.

Law of Georgia No. 1899 of 23 December 2017 – website, 11 January 2018.

Article 7. Suitability Criteria🔗

1. A director (member of the board of directors) of a microfinance organization may not simultaneously be a partner (shareholder) of any commercial bank, microbank, non-bank deposit institution – credit union or other microfinance organization, or a member of the supervisory board and/or the board of directors.

2. A person shall be prohibited from being an administrator of a microfinance organization if:

a) he/she participated in an operation that caused significant damage to a financial institution, infringed the rights of depositors or other creditors of the financial institution, or caused the insolvency or bankruptcy of the financial institution;

b) he/she was an administrator of a financial institution and as a result of his/her activity the said financial institution became insolvent;

c) he/she failed to fulfil a financial obligation towards any financial institution;

d) he/she has been convicted of a grave or especially grave crime, financing of terrorism and/or legalization of illegal income or another economic crime;

e) he/she does not have appropriate education and/or experience.

3. An administrator of a microfinance organization shall be prohibited from participating in the adoption of a decision on a matter in respect of which he/she has a personal interest.

4. A person shall be prohibited from being a holder of a significant share or a beneficiary owner of a microfinance organization if he/she has been convicted of a grave or especially grave crime, financing of terrorism and/or legalization of illegal income or another economic crime.

4¹. A person shall be prohibited from being an administrator, holder of a significant share or beneficiary owner of a microfinance organization if the National Bank of Georgia has information that he/she carries out illegal activity and/or unsound and/or risky entrepreneurial practice.

5. A person who intends to acquire a significant share of a microfinance organization in an amount such that his/her or his/her beneficiary owner's (beneficiary owners') participation in the capital of this microfinance organization exceeds 10% or 50% shall be obliged to submit to the National Bank of Georgia an application and documentation on compliance with the requirement established by paragraph 4 of this article.

6. The National Bank of Georgia shall consider the application within 15 calendar days from its submission and shall give the interested person consent to carry out the relevant operation or shall give a reasoned refusal.

7. Failure by the National Bank of Georgia to give a response to the interested person within 15 calendar days from the submission of the application shall automatically mean giving consent to carry out the relevant operation.

8. A transaction on the acquisition of a significant share of a microfinance organization shall be void if the interested person did not submit an application to the National Bank of Georgia or received a reasoned refusal from the National Bank of Georgia, but nevertheless acquired a significant share of the microfinance organization.

9. The National Bank of Georgia is entitled to determine by a legal act additional criteria for the suitability of an administrator of a microfinance organization.

Law of Georgia No. 5528 of 20 December 2011 - website, 28.12.2011.

Law of Georgia No. 263 of 6 March 2013 - website, 20.03.2013.

Law of Georgia No. 4198 of 3 September 2015 - website, 10.09.2015.

Law of Georgia No. 442 of 10 March 2017 - website, 22.03.2017.

Law of Georgia No. 1899 of 23 December 2017 - website, 11.01.2018.

Law of Georgia No. 2604 of 22 February 2023 – website, 10.03.2023.

Article 8. Proper procedures, audit, accounting and reporting🔗

1. A microfinance organization shall:

a) maintain transparent financial and tax reporting and observe the principle of publicity;

b) develop and implement an internal control system and procedures;

c) annually engage an auditor to conduct an audit of the financial reporting in accordance with the legislation of Georgia;

d) maintain transparent financial reporting and tax reporting, be responsible for the accuracy of the said reporting, as well as for the complete submission of information and reporting, and observe the principle of publicity; submit financial reporting to the National Bank of Georgia. The accounting rules, the reporting form and the submission deadline shall be determined by the legal acts of the National Bank of Georgia;

e) submit financial reporting to the National Bank of Georgia. The reporting form and the submission deadline shall be determined by a normative act of the National Bank of Georgia;

f) be responsible for the accuracy of the reporting, as well as for the complete submission of information and reporting;

g) by 15 June of the year following the end of each calendar year, publish on its own website the annual audited financial reporting of the past year, which was prepared in accordance with the International Financial Reporting Standards (IFRS) approved by the International Accounting Standards Board and audited in accordance with the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants;

h) implement the proper procedures defined by the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS MCAA) under the Convention on Mutual Administrative Assistance in Tax Matters of 25 January 1988, or by the relevant agreement between Georgia and the relevant jurisdiction on the automatic exchange of information on financial accounts, in accordance with the "Common Reporting Standard" provided for by the said agreement, if this microfinance organization is a Reporting Financial Institution as defined by that agreement.

2. If a microfinance organization fails to submit the financial reporting provided for by this article to the National Bank of Georgia twice consecutively, in the form and with the periodicity established by the latter, the National Bank of Georgia is entitled to cancel the registration of the microfinance organization.

3. A microfinance organization shall keep the following documentation for 6 years:

a) accounting books, inventory records, balance sheet, as well as instructions necessary for their understanding and other organizational documents;

b) accounting documents confirming the entries in the accounting book.

Law of Georgia No. 5924 of 14 March 2008 - LHG I, No. 7, 26.03.2008, Art. 44

Law of Georgia No. 1682 of 24 September 2009 - LHG I, No. 29, 12.10.2009, Art. 165

Law of Georgia No. 4198 of 3 September 2015 – website, 10.09.2015.

Law of Georgia No. 442 of 10 March 2017 – website, 22.03.2017.

Law of Georgia No. 1899 of 23 December 2017 – website, 11.01.2018.

Law of Georgia No. 2145 of 30 November 2022 – website, 15.12.2022.

Law of Georgia No. 2604 of 22 February 2023 – website, 10.03.2023.

Article 9. Conditions for granting a microcredit🔗

1. A written credit agreement shall be concluded between the microfinance organization and the borrower on the granting of a microcredit in accordance with this Law and the Civil Code of Georgia.

2. A loan provided for by this Article may be group or individual, secured or unsecured. The rules and conditions for granting a microcredit shall be established by the microfinance organization.

3. The amount of the interest rate, the commission fee and the service fee shall be established by the microfinance organization.

4. The microfinance organization may exercise control over the intended use of the credit by the borrower, while the borrower shall be obliged to provide the microfinance organization with the opportunity to exercise such control. If the borrower fails to fulfill the obligation to use the credit for its intended purpose, the microfinance organization shall have the right to refuse to perform the agreement on the granting of the credit in the part of the credit not disbursed and to demand early repayment of the disbursed part of the credit.

5. The National Bank of Georgia is authorized to impose on a microfinance organization the terms and maximum amount of the early repayment commission as a result of refinancing of microcredits issued by it or repayment from its own funds.

Law of Georgia No. 263 of 6 March 2013 – website, 20.03.2013.

Law of Georgia No. 4198 of 3 September 2015 – website, 10.09.2015.

Law of Georgia No. 442 of 10 March 2017 – website, 22.03.2017.

Article 9¹. Violations and sanctions🔗

1. The National Bank of Georgia is entitled to apply the sanctions defined by paragraph 2 of this Article to a microfinance organization and/or an administrator of a microfinance organization, if the microfinance organization or the administrator of the microfinance organization:

a) violated one of the provisions of this Law or any provision, rule, resolution, requirement or written instruction of the National Bank of Georgia or a restriction established by the National Bank of Georgia;

b) violated any condition or restriction accompanying the registration of the microfinance organization or attached to the relevant provision of the National Bank of Georgia;

c) violated the deadline for submitting reporting or submitted incorrect reporting or other inaccurate information;

d) violated the requirements of the Law of Georgia “On Facilitating the Suppression of Money Laundering and the Financing of Terrorism” and/or of a normative act issued on its basis;

[ d¹) violated the requirements of the Law of Georgia “On Factoring” and/or of normative acts issued on its basis; (shall enter into force from 1 January 2027)]

e) violated the requirements established by the legislation of Georgia in connection with the issuance of a loan and/or the attraction of funds;

f) carried out or carries out an unhealthy or risk-creating entrepreneurial practice.

2. Upon detection of a violation defined by paragraph 1 of this Article, the National Bank of Georgia has the right, sequentially, and depending on the seriousness of the violation and the existing or possible risk – non-sequentially, to apply the following sanctions:

a) send a written warning to the microfinance organization;

b) impose special measures or issue an instruction (direction) requiring that the microfinance organization cease and subsequently not allow this or that violation and, within the period determined by the National Bank of Georgia, take the measures necessary to eliminate the violation;

c) impose a monetary fine on the microfinance organization or the administrator of the microfinance organization in the manner and amount established by the National Bank of Georgia;

d) suspend the signing authority of the administrator of the microfinance organization and request his/her temporary removal from office or dismissal from office;

e) suspend or restrict the growth of assets and the attraction of funds for the microfinance organization; prohibit the microfinance organization from distributing profit, accruing and paying dividends, increasing remuneration for labour, and paying bonuses and other similar remuneration;

f) terminate or restrict certain types of operations;

g) cancel the registration of the microfinance organization.

3. The amount of the monetary fine imposed in accordance with this Article shall be directed to the State Budget of Georgia.

Law of Georgia of 23 December 2017 No. 1899 - website, 11.01.2018.

Law of Georgia of 30 October 2019 No. 5234 – website, 30.10.2019.

Law of Georgia of 1 April 2026 No. 1463 - website, 06.04.2026.

Article 10. Confidentiality of Information🔗

1. A microfinance organization 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, 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), the Multilateral Competent Authority Agreement "On Automatic Exchange of Information on Financial Accounts" (CRS MCAA) within the framework of the Convention of 25 January 1988 "On Mutual Administrative Assistance in Tax Matters", or the relevant agreement between Georgia and the respective jurisdiction on the automatic exchange of information on financial accounts.

2. Information held by a microfinance organization about a borrower (information on any transaction, operation carried out, existing debt or balance) may be provided only to the parties to the relevant transaction and their authorized representatives, the National Bank of Georgia, the commission reviewing disputes with the National Bank of Georgia provided for by the Organic Law of Georgia "On the National Bank of Georgia", 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 borrower's prior written consent.

3. The court, investigative and tax authorities shall be prohibited from transferring information to another body (including the media) and from publicly using it before the court renders the relevant judgment, except for the case provided for 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 for the Improvement of International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA), the Multilateral Competent Authority Agreement "On Automatic Exchange of Information on Financial Accounts" (CRS MCAA) within the framework of the Convention of 25 January 1988 "On Mutual Administrative Assistance in Tax Matters", or the relevant agreement between Georgia and the respective jurisdiction on the automatic exchange of information on financial accounts.

Law of Georgia of 14 March 2008 No. 5924 – LHG I, No. 7, 26.03.2008, Art. 44

Law of Georgia of 24 September 2009 No. 1682 – LHG I, No. 29, 12.10.2009, Art. 165

Law of Georgia of 3 September 2015 No. 4198 – website, 10.09.2015

Law of Georgia of 28 October 2015 No. 4465 – website, 11.11.2015

Law of Georgia No. 442 of 10 March 2017 – website, 22.03.2017.

Law of Georgia No. 1899 of 23 December 2017 – website, 11.01.2018.

Law of Georgia No. 3295 of 21 July 2018 – website, 09.08.2018.

Law of Georgia No. 4249 of 27 December 2018 – website, 29.12.2018.

Law of Georgia No. 4594 of 8 May 2019 – website, 08.05.2019.

Law of Georgia No. 1333 of 30 December 2021 – website, 13.01.2022.

Law of Georgia No. 1803 of 9 September 2022 – website, 23.09.2022.

Law of Georgia No. 2145 of 30 November 2022 – website, 15.12.2022.

Law of Georgia No. 1305 of 17 December 2025 – website, 23.12.2025.

Article 10¹. Liquidation of a microfinance organization🔗

1. Upon cancellation of the registration of a microfinance organization (except for the case provided for by Article 10² of this Law), the microfinance organization shall be liquidated. The functions of the liquidator of the microfinance organization shall be performed by a person appointed by the National Bank of Georgia. Upon the commencement of the liquidation process of the microfinance organization, enforcement shall be terminated.

2. The liquidation of a microfinance organization shall be carried out in accordance with the procedure determined by a legal act of the National Bank of Georgia.

3. The liquidator of a microfinance organization shall be accountable to the National Bank of Georgia, in accordance with the procedure established by the National Bank of Georgia.

4. The liquidator of a microfinance organization shall be entitled to sell the assets of the microfinance organization at a public auction or, in agreement with the National Bank of Georgia, to choose another form of their disposal, as well as to transfer the right of claim on the said assets to creditors in accordance with the order of priority, to transfer the right of claim on loans or other financial assets to a representative of the financial sector, and to organize the transfer of the said obligations.

5. If, during the transfer of the assets and obligations provided for by paragraph 4 of this Article, the respective creditor and/or debtor fails, within the period determined by the liquidator of the microfinance organization, to declare consent or refusal to the transfer of the asset or obligation to another person, consent shall be deemed to have been given automatically.

6. The liquidator of a microfinance organization shall be entitled, by filing a claim in court, to challenge an action or transaction carried out by the administrator of the microfinance organization 1 year before the appointment of the liquidator of the microfinance organization and to demand its invalidity, if as a result thereof persons related to the microfinance organization received a property benefit at the expense of this microfinance organization or enjoyed any advantage, privilege or benefit, which caused damage to the microfinance organization and/or its creditors.

7. Before the completion of the liquidation of a microfinance organization, the requirements of this Law and of the Organic Law of Georgia "On the National Bank of Georgia" shall apply to a microfinance organization in the process of liquidation.

8. After the completion of the liquidation process of a microfinance organization, the individual administrative-legal act of the National Bank of Georgia shall be submitted to the respective registering authority for the purpose of registering the liquidation of the microfinance organization and removing it from the respective register.

9. If a microfinance organization in the liquidation regime is at the same time an initiator as defined by the Law of Georgia "On Conversion into Securities", the liquidation process in respect of the microfinance organization shall proceed taking into account the special provisions established by Articles 18, 20 and 22 of the same Law.

Law of Georgia of 23 December 2017 No. 1899 – website, 11.01.2018.

Law of Georgia of 22 February 2023 No. 2604 – website, 10.03.2023.

Law of Georgia of 15 December 2023 No. 3933 – website, 27.12.2023.

Article 10². Conversion of a microfinance organisation into a commercial bank or a microbank🔗

1. A microfinance organisation that is a legal entity founded in the legal form of a joint-stock company is entitled to change the object of its activity and to apply to the National Bank of Georgia, in accordance with the procedure established by the legislation of Georgia, for obtaining a licence for banking activity or a licence for microbank activity.

2. Before the National Bank of Georgia adopts a decision on granting a licence for banking activity or a licence for microbank activity, the microfinance organisation shall continuously carry out microfinance activity and shall be subject to the requirements established by this Law.

3. The National Bank of Georgia, together with a positive decision on granting a licence for banking activity or a licence for microbank activity, shall adopt a decision on the cancellation of the registration of the microfinance organisation. Upon the cancellation of the registration of the microfinance organisation, the respective commercial bank or microbank shall become its successor.

4. In the event of receiving a refusal to grant a licence for banking activity or a licence for microbank activity, the microfinance organisation shall continue its activity in accordance with the procedure established by this Law.

Law of Georgia of 22 February 2023 No. 2604 – website, 10.03.2023.

Article 11. Transitional provisions🔗

1. In the event of the founding of a limited liability company or a joint-stock company by microfinance organisations registered with the status of a non-entrepreneurial legal entity before the entry into force of this Law, the authorised bodies defined by the charters of these microfinance organisations shall have the right, by their decisions, to determine the amount of the charter capital of the limited liability company or the joint-stock company in accordance with Article 6 of this Law (for a joint-stock company, to determine the nominal value of the shares).

2. When making a non-monetary contribution to the charter capital, microfinance organisations registered with the status of a non-entrepreneurial legal entity before the entry into force of this Law shall, by 30 November 2007, carry out an audit valuation of the respective property.

3. The authorised bodies defined by the charters of microfinance organisations registered with the status of a non-entrepreneurial legal entity before the entry into force of this Law shall be granted the right to alienate the shares (stocks) of the companies founded by these microfinance organisations and to determine the procedure for their alienation.

4. The requirements provided for by paragraph 2 of Article 33 of the Civil Code of Georgia shall not apply until 31 December 2007 to microfinance organisations registered with the status of a non-entrepreneurial legal entity before the entry into force of this Law.

Law of Georgia of 11 July 2007 No. 5254 - LHG I, No. 29, 27.07.2007, Art. 313

Article 12. Final provision🔗

This Law shall enter into force upon publication.

President of Georgia M. Saakashvili

Tbilisi,

18 July 2006.

No. 3482–rs