The Committee heard Mamuka Kkazaradze and Badri Japaridze speaking about the developments around TBC Bank.

“As you know, M. Khazaradze stated about his will to appear in the Parliament and express his opinions regarding the TBC Bank developments. This statement was made 2 weeks ago and then we stated that the Parliament is open and the Budget Committee is open for the consideration. My offer was as well adequate as it is the profile Committee and we are able to hold the hearing. Correspondingly, we are ready today to hear you”, - the Chair, Irakli Kovzanadze noted.

The founder of TBC Bank, M. Khazaradze spoke about the transactions by the Bank in 2007-2008 stating that in 2007, the Bank breached the capital adequacy norm and was given a very short time for correction.

“We needed the capital to enhance our activity and accreditation. It is a good problem as it means that the economy is growing. For enhancement of our activity we needed to attract new capital. Unfortunately, we had no opportunity to enjoy 3 months in this view. Correspondingly, the next day the National Bank issued the Order on termination of main activity of TBC Bank”.

He spoke about attraction of investors, including cooperation with international financial institutions and underlined negative impact of Georgia-Russia war and the world financial crisis. Since 2009, TBC Bank was enlisted into the world category and appeared amongst 250 largest companies at London Stock Exchange.

Speaking about the recent developments, he noted that the National Bank blackmailed him and B. Japaridze. “I declare total distrust to the competence of the President of the National Bank and his Deputy. I do not know whether I enjoy this right, it is probably up to you – Members of Parliament but I, as the citizen and the person with 27 years of experience in this sphere, want to raise the issue of responsibility of these persons. I also would appeal to you to set up the Ad Hoc Commission to introduce all the details, letters and other nuances I hold”.

Prior to the second round of the Elections he received the letter by Interior Minister: “comprising menace and demands, which we have not implemented”.

M. Khazaradze and B. Japaridze answered the questions.

I. Kovzanadze summed up the sitting: “Everyone had the opportunity to ask the questions and M. Khazaradze and B. Japaridze were able to express their opinion. They had the sense that they would be deprived of this opportunity in the Parliament but the ruling party granted this opportunity to them”.

TBC Bank is a very important component of Georgian financial system: “It is the recognized leader of the Georgian bank sector and beyond Georgia as well. I believe that it is the leading Bank in Caucasus and it shall be taken care of. The joint statement of the NB and TBC Bank speaks itself up and it is the basis for TBC Bank for further development in Georgia".

“Every question was answered at the sitting and I believe that even more questions emerged. As to the statement regarding G. Gakharia, he is a professional Minister and we need to clarify this issue. Now, the National Bank makes the special statement noting that the statement about the blackmail is wrong. We will need to invite the NB President in this regard. The joint statement provided that TBC Bank shall develop its corporate management in regards with the independent Directors. TBC Bank shareholders terminated the dispute with the NB and it is the proper stem made by them. The Committee sitting is not the Court and does not serve for identification of the guilty or the innocents. We had the opportunity to open this position for Mr. Khazaradze and Mr. Japaridze. MPs had the opportunity to hear them. Besides, for me, as for the Chair of the Committee with 25 years of experience in banking, it is paramount to take care of TBC Bank and the joint statement is the starting point. We cannot follow the conspiracy theory. We strive to ensure development of TBC Bank, to develop healthy competition and to make the Bank progress”.

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Parliament Terminating Credentials of MPs Zurab Girchi Japaridze and Mamuka Khazaradze

Rules and Procedural Issues Committee Discussing Termination of MP’s Credentials for Mamuka Khazaradze

The Budget and Finance Committee hearing Mamuka Khazaradze and Badri Japaridze