The National Bank of Georgia announced changes to the share of Russian citizen deposits held in foreign currencies that banks do not lend on demand. The update came through the National Stability Committee, the regulator tasked with monitoring financial resilience.
The report notes that banks must now retain roughly 40% of liquid asset deposits belonging to Russians and other non-residents. This marks a substantial reduction from the prior 80% requirement that had been in effect.
Following the introduction of the 80% withdrawal threshold, the Central Bank observed that the volume of Russians’ deposits stabilized, and their proportion within total bank deposits declined over time.
As of February 16, 2024, deposits held by Russians in Georgian banks totaled 3.5 billion lari, about 1.32 billion US dollars. This level enabled banks to access roughly 1.4 billion lari of these funds with greater ease when needed.
Towards the end of 2022, Russians and Belarusians began closing accounts at Bank of Georgia without public explanations, signaling shifts in customer behavior and the broader regulatory environment.
Meanwhile, India is moving to establish a mechanism that would facilitate payments for Russian Sokol oil, reflecting evolving energy and trade arrangements in the region.