Georgian banking system “at risk” due to country’s relations with Iran – opposition politician

Elene Khoshtaria, the founder of the Droa opposition party, on Tuesday said the country’s banking system was “at risk” due to Georgia’s relations with Iran, as the latter had been sanctioned by the United States for its nuclear programme and supporting several terrorist groups. 

The comment comes on the heels of Monday’s statement of the National Bank of Georgia that  announced the adoption of new regulations for domestic commercial banks to reduce the risks of violation of international sanctions imposed on Iran, in response to reports that the Iranian territory is being used by some Asian countries to transport goods in a bid to reduce costs.  

“This [NBG] statement shows that there is already a high level of perception of Georgia as a country where there is a problem. As far as I know, this is not related to the import of sanctioned goods from Iran, but to the type of relations with Iran, where Georgia is the hub of sanctioned goods. Georgia’s existing relations with Iran have created problems and that is why the NBG has made the statement”, Khoshtaria said. 

The NBG has warned commercial banks that violating the sanctions during transactions could create problems for the country’s financial sector.