Former National Bank president warns of potential banking crisis in Georgia

Giorgi Kadagidze, the former president of Georgia’s National Bank, has raised concern about the country’s banking sector, warning of its heavy reliance on a single US bank. This American bank, according to Kadagidze, facilitates all international money transfers in Georgia, making the nation vulnerable to any sanctions-related decisions by the bank.

Kadagidze cautioned that if this bank were to classify Georgia as high-risk for sanctions evasion, it could halt financial operations overnight, potentially pushing Georgia back to the economic conditions of the 1990s.

He also highlighted the challenges faced by major commercial banks, including the Bank of Georgia and TBC Bank, as they strive to avoid falling under Western sanctions.

“One day is enough for everything to come to a halt, leading to a sharp devaluation of the national currency and a collapse in real estate prices,” Kadagidze warned.

Despite these dire warnings, he noted that peace and prosperity are still achievable for the country.