Weekly Update from the Chief Economist
December’s foreign exchange inflows improved again, mainly due to increased traditional tourism, while migration effects slightly decreased.
January’s deposit dynamics indicate a shift in expectations regarding GEL depreciation. Despite seasonal factors, GEL deposits grew more than currency deposits, reflecting evolving expectations. Considering foreign exchange inflows and sentiments, two additional components of TBC Capital’s Lari exchange rate framework need consideration: low inflation and recent lari strength may challenge competitiveness in some industries.
Though SEB’s December and January currency interventions data is pending, TBC Capital anticipates more USD purchases following a $169.4 million sale in September-November, rather than significant lari strengthening. Exchange rate dynamics of the euro and regional currencies, including the Turkish lira’s weakening and the Russian ruble’s strengthening, influence the lari’s average exchange rate stability with main trade partners.
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Unlock a rewarding experience on the TBC Digital Bank investment platform!
Become one of the first 1000 users to open an investment account and receive $5 in Apple shares
Simply update your TBC Digital Bank application and follow the easy instructions
Discover the freedom of our investment platform, offering you access to stocks and funds from over 6,500 US companies with just a click. Buy as little as half or even a tenth of a share for as little as $1. Opening an account, depositing funds, investing, buying and selling assets, and withdrawing money—all at your fingertips and, most importantly, with no commission fees.
Enjoy the added benefit of earning up to 3% annual interest in US dollars by temporarily holding your funds in an investment account while you decide on your investment strategy.
For users of the TBC Concept 360 set, our personalized services include access to a dedicated investment advisor. They will assist you in creating a tailored portfolio based on your unique needs, keeping you informed about market trends, and handling any analytical or technical tasks you may have.
Take advantage of our autopilot feature, simplifying the investment process. Choose your preferred investment option—be it stocks, funds, or a specific savings schedule (daily, weekly, or monthly). Once activated, the autopilot ensures that your chosen stocks and funds are automatically purchased according to your selected amount and schedule.
Don’t hesitate—start investing today and unlock the potential of the TBC Digital Bank investment platform!
Meet TBC Business Awards finalists for Outstanding Customer Experience: “Tsim Tsim,” “Entebi,” and “Auki.”
“Entebi” stands out in accounting and financial services, catering to over 500 businesses daily. Founded in 2015, it revolutionized the market by providing simplified, technology-driven solutions, focusing on small and medium-sized businesses. Through automation, cost reduction, and digitization, “Entebi” replaced physical documents with electronic exchanges, ensuring efficient customer service via WhatsApp.
“Tsim.Tsim” specializes in eco-friendly children’s textiles, prioritizing quality and social responsibility. Beyond profit, the company emphasizes human values, offering free training to women. With a focus on customer satisfaction, “Tsim.Tsim” adapts to individual needs, promising a positive experience for both customers and employees.
“Auki” excels in spatial arrangement services, transforming the customer experience in home design. Utilizing digital tools like Trello, the company provides transparency in project management. Clients can remotely monitor renovation progress and visualize the final outcome. “Auki” prioritizes communication and transparency, turning a traditionally unpleasant process into a positive, user-centric experience.
With TBC’s support, Index | Wealth Management’s inaugural project, “River Park,” is underway at Digomi 8 in Tbilisi
Nestled on the Mtkvari’s edge in a unique microclimatic zone, the 30,000 m2 development features a low-rise plan with 4-story buildings.
Project amenities encompass parks, walkways, children’s spaces, recreational zones, and a pool. Notably, communal green roofs, spanning over 1 hectare, boast furnishings, functionality, and security systems.
Digomi 8, a sought-after locale for locals, diplomats, and businesses, has seen a 26% real estate price surge. River Park aligns with this trend, offering a chance for improved living and savvy real estate investment.
Priced from $1450 per square meter, the project provides flexible payment options, enabling buyers to acquire an apartment from $1,000 monthly, sans a down payment.
Index | Wealth Management, a real estate development and investment firm, manages 8 projects in Digomi 8, Avlabari, Gldani, Ortachala, and other city districts. Presently, 4 projects are in progress with TBC’s backing.
Explore Wealth Management’s projects and the company here
TBC Bank and the Dutch Development Bank (FMO) recently signed a EUR 80 million loan agreement on January 25.
The deal involves a syndicate, including FMO and five other European organizations, providing TBC with a subordinated loan. This financial injection aims to fortify TBC’s capital structure and enhance its long-term sustainability. The agreement signifies a notable collaboration between TBC Bank and FMO, with the latter also serving as the syndication agent.
The signing event, attended by TBC Bank’s General Director Vakhtang Butskhrikidze and FMO’s Financial Institutions Manager Ruhi Kosgun, was honored by the presence of the Dutch Ambassador to Georgia and representatives from Denmark and Finland.
The six European organizations participating in the syndicate are the Finnish Fund for Industrial Cooperation (Finnfund), the Danish Investment Fund for Developing Countries (IFU), and the ILX Fund (ILX), focusing on emerging market lending. TBC’s longstanding partners, including BlueOrchard Microfinance Fund (BOMF), Green for Growth Fund (GGF), and FMO, are also part of the syndicate. Notably, this transaction stands out as the largest syndicate of secondary capital instruments provided by FMO under the new Basel 3 framework.
Vakhtang Butskhrikidze, TBC Bank’s General Director, expressed satisfaction with the collaboration, highlighting the significance of the financial support from leading European institutions. He emphasized that this transaction reinforces TBC Bank’s capital position and supports sustainable growth, particularly in inclusive financing.
Ruhi Kosguni, Manager of Financial Institutions at FMO, praised the longstanding cooperation between TBC Bank and FMO, emphasizing TBC Group’s stellar reputation for adhering to international standards. He expressed pride in the new investment, which will bolster TBC Bank’s capital and contribute to expanding its green portfolio. Additionally, he welcomed the collaboration with new financial institutions and acknowledged the effective cooperation between the TBC team and investment partners.
In conclusion, this agreement marks a significant milestone in the partnership between TBC Bank and FMO, showcasing the commitment to mutual success and sustainable financial growth.
Global Finance named TBC as the best supplier of trade finance in Georgia in 2024
The international financial magazine, Global Finance, has once again awarded TBC as the premier provider in Georgia for international trade promotion and financing in its 24th edition. TBC secured this recognition based on criteria such as transaction volume, market share, global coverage, service quality, competitive pricing, and the utilization of innovative technologies.
The Global Finance Awards, emphasizing the significance of modern technology in today’s global market, acknowledge TBC’s consistent win in consecutive years. This reinforces TBC’s identity not only as a financial institution but also as a technology company, delivering cutting-edge solutions and streamlined processes to businesses. Giorgi Taliadze, Deputy General Director of TBC, expressed confidence in the support from partner companies in international trade, leveraging the expertise of their team, TBC’s digital capabilities, and extensive collaborations with major global financial institutions in 2024.
Giarraputo, the publisher and editor-in-chief of Global Finance, highlighted the imperative for banks and corporate clients to embrace digitization amid challenging geopolitical and economic landscapes. In an era marked by rapid change, clients seek reliable partners offering simplicity and precision. Banks supporting trade finance aim to address ecosystem concerns and respond effectively to the rising Environmental, Social, and Corporate Governance (ESG) trend by enhancing transparency in the supply chain.
Global Finance, a respected international publication with over two decades of history, has consistently recognized TBC with various awards over the years. In the 24th edition, the magazine identified the best trade financing suppliers in 100 countries worldwide.
International tech company Thoughtworks writes about successful cooperation with TBC
TBC and international company Thoughtworks partnered a year ago for tech transformation. TBC gains resources and knowledge from Thoughtworks, linked with major players like Microsoft, AWS, and Google Cloud. After a year, TBC’s transformation became more rigorous, fast, and consistent, simplifying processes and boosting team motivation. Enhanced customer experience guides TBC’s decisions, and the partnership expanded into the Caucasus and Central Asia region. The collaboration improved TBC’s strategic areas, fostering a long-term relationship. TBC’s CEO emphasizes achieving desired quality, while the IT Director sees Thoughtworks as a vital long-term partner. The partnership not only enhances customer experience but also promotes tech development in Georgia and offers a model for other companies.
