Georgia is a country located in the Caucasus region bordering the Black Sea. It has a population of 4.5 million people and its capital and largest city is Tbilisi. Georgia's economy has grown significantly in recent years, with GDP growth averaging over 17% from 2003-2008, though it declined to -4% in 2009 due to the global financial crisis. The banking sector emerged from the crisis in reasonably good condition and loan impairments have stabilized, though future growth is expected to be less risky than pre-crisis levels. Georgia has implemented pro-business reforms and offers attractive tax incentives to foreign investors.
12. Special Liberal Taxation Regimes for: International Financial Company Free Industrial Zone Free Warehouse Company Free trade regimes being negotiated with EU and USA Liberty act passed on no policy drift in the future Mega infrastructure projects planned: new airports, re-equipment of railway, new industrial port on the Black Sea Fundamentals of economy remain strong compared to peers Georgia: Government Policy and Liberty Act
18. Summery on Georgian banking industry Fitch: Future Georgian banking sector Development should be Less High-risk than Pre-Crisis Growth (Press release of July 14th 2010)...the system has emerged from global crisis and domestic downturn in a reasonably good condition Loan impairment peak (2009) has stabilized in 2010 and has reduced, due to effective work outs performed by the top banks Industry to experience not an aggressive lending, and balanced funding structure Due to limited level of domestic funding, in the long term the banks that are able to balance between local (retail) and international (institutional) funding, will ultimately benefit Profitability of the sector has improved, interest margin remains very attractive