Georgia’s Parliament approves new National Bank board members amidst tensions

Georgia’s disputed parliament has approved the appointment of four new members to the National Bank Board in a majority vote. Former Minister of Environment and Agriculture Otar Shamugia, National Bank Executive Director Vakhtang Burkiashvili, Nino Jeladze, and Levan Dzneladze were nominated to fill the four vacant positions.

Following the vote, Shalva Papuashvili, Speaker of the parliament, claimed the “sabotage” obstructing the National Bank’s operations would come to an end. He also announced that the institution would resume its full activities with a fully staffed board. “For almost a year and a half, we have not been able to staff the National Bank Board due to the sabotage of ex-President Salome Zourabichvili. The National Bank had to operate with five members. It is important that we were able, including as a result of the October 26 elections, to end this sabotage and the National Bank will now continue its activities in full force,” Papuashvili said.

The National Bank of Georgia’s Board is comprised of nine members. However, recent months have seen the Board functioning with only five members after three left in September 2023 – Nikoloz Gagua, Archil Mestvirishvili, and Papuna Lezhava – followed by the expiration of Richard Singletary’s term in December.

The departures stemmed from controversy surrounding a decision by the Acting President of the National Bank, Natia Turnava, to make an exception for Georgian citizens under international sanctions. This decision, which allowed former US-sanctioned former Prosecutor General Otar Partskhaladze access to his bank accounts, led to the resignation of several Board members.

The new appointments were put forward by Mikheil Kavelashvili, the sixth President elected by the Parliament last year, on February 3.