International Monetary Fund (IMF) Resident Representative in Georgia, Francois Painchaud stated that National Bank of Georgia is acting responsibly regarding the case of TBC Bank.
“We do not have specific details, however, we consider that National Bank of Georgia - as the supervisor of Georgian financial sector- is doing its job while keeping in mind its responsibilities. Not taking any action when there is a legal basis for taking an action would be very damaging for the credibility of NBG as the effective supervisor of the financial sector, as well as the overseeing practice as a whole.
Lastly I would like to note that TBC bank is financially strong and well-capitalized. As far as we know, there are no questions regarding the financial soundness and stability of the bank”, stated Painchaud.
National Bank of Georgia ordered the firing of Chairman and Deputy Chairman of the Supervisory Board of TBC Bank, Mamuka Khazaradze and Badri Japaridze. This decision has to be implemented within the course of next two months. This is noted in the official statement that TBC Bank published on London Stock Exchange.
According to the official statement issued by NBG, the decision is based on the facts of violating the certain regulatory norms and requirements set by the legislation regulating conflicts of interests issues. The identified infringements that were detected through the inspection conducted by NBG, are linked to the transactions that took place in 2007-2008.
“As a result of the inspection, the violation by the head and the deputy head of the Supervisory Board of certain norms and requirements regulating conflicts of interests has been revealed”, reads the statement.
