A new government proposal to reform the National Bank of Georgia is an attempt to “institutionally downgrade its status, which is unacceptable,” Vladimer Papava, a non-aligned MP and a senior fellow at the Tbilisi-based think-tank Georgian Foundation for Strategic and International Studies (GFSIS), has said.
A comprehensive economic package recently submitted to Parliament, among other things, includes a proposal to increase the National Bank’s accountability in respect of monetary policy. If annual inflation reaches 12%, the president of the National Bank will have to resign.
MP Papava told the Georgian Public Broadcaster (GPB) on February 7 that inflation was not solely dependent on the policies of the central bank; government is also responsible.
Co-author of the initiative Kakha Bendukidze, the former state minister in charge of reforms and current head of the government’s administration, downplayed the concerns, saying the central bank would have all necessary levers at its disposal to control inflation.
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