For Georgia, Greece represents the second largest sources of remittances, or money sent home by individuals employed abroad. NBG President Giorgi Kadagidze spoke on the recent developments in Greece and its effects on the Georgian economy.
“At this stage, the economic developments in Greece are painful for Georgia from the social point of view rather than financial,” National Bank of Georgia president spoke in an interview with IPN.
“In total we are facing a loss of 100 million USD in remittances from Greece this year. I want to emphasize that in macroeconomic terms it may not be as great of a burden for Georgia, as it will be in the social standpoint. I’m saying this because so many Georgians work in Greece currently,” Kadagidze said.
“For lots and lots of Georgian families remittances from Greece represent the sole source of income. That is why the developments in Greece will be especially painful from the social point of view. This is especially true for the initial stages of the crisis,” NBG President told the media.
Giorgi Kadagidze, who’s term as the Governor of the National Bank of Georgia ends in September of this year, said that NBG has been preparing for the macroeconomic effects of the Greek crisis for quite some time now.
“Reduction of remittances from Greece have been included in our program already. However, we hope that the pessimistic scenario will not play itself,” Kadagidze said.