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NBG President Refuses Larization Signifies GEL Exchange Rate Stabilization

Larization program is not to stabilize GEL exchange rate, National Bank President Koba Gvenetadze noted at the parliament’s finance and budget committee meeting.

“Government has carried out the social program of Larization with the technical support of NBG. Expediency of the social program may be always disputable”, Koba Gvenetadze said.

MP Khatuna Gogorishvili criticized the NBG President. Government had said that this was not a social program, Gogorishvili pointed out.

“Larization is a long-term program and it is not to ensure GEL exchange rate stability. I do not think anything similar was said earlier. Larization does not signify GEL exchange rate stability. This is a reduction of dependence on exchange rate. This signifies the access to GEL resources should be broadened in the economy and the wider access to GEL resources, the more loans will be denominated in GEL”, the NBG President explained and referred to international samples.

In foreign countries the mentioned program has brought real results in various periods, in long-term perspective, Koba Gvenetadze said.

“Dependence of foreign currency cannot be reduced in a short period. Despite this, we think we have achieved certain results in this direction. For example, loans Dollarization in the banking sector has shrunk from 65% to 57%”, the NBG President said.