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National Bank of Georgia is Regarded as a Manger of Deposit Insurance Fund as Well

National Bank of Georgia is Regarded as a Manger of Deposit Insurance Fund as Well

Deposit Insurance Fund will be delivered to National Bank of Georgia under the management or any other high reputable structure.

Davit Lezhava, deputy finance minister has declared to TV-company Maestro, that the government will maximally try to avoid hard pressure on the banking sector, so insurance volume should be within 5000 GEL (equivalent in other currency) at the first stage.

The draft bill will clearly determine the government’s commitment. However, depositories might be refunded from the budget at the insufficient finances in the Fund during the force majeure. The banks demanded to explain it in order to avoid the interpretations. Lezhava noted, that the banks’ version and preliminary version announced by the government, to insure merely deposits in GEL cannot be implemented. As , the EU directive  bans segregation and discrimination by currencies.

Deposit insurance system envisaged by the EU directive might be enacted until 2020 within the frame of the association agreement. To note, 20% of total deposit market should be insured. Lezhava notes, that this system is included in 4 institutes (supply of liquidity, the so-called resolution of banks) of Financial Stability. Component of closed market is raised as well. The Board of  the Fund will decide itself to increase revenues by local market or attract it from international capital markets.