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Parliament of Georgia adopted new legislative package initiated by the government of Georgia that includes 3 draft laws and 17 amendments to the functioning laws. The package aims to enhance competitivness and efficiency of the Georgian financial sector, facilitating rapid economic growth, attracting FDI, developing free market institutes, simplifying company registration and creating global financial center in Georgia. TThe plan is to accumulate 10-12 billion US Dollar worth of assets in financial sector, creating several thousand high-income jobs, thousands of new complementary businesses.

Amendments include separating National Bank’s monetary and supervisory functions. Two new independent entities will be established: Financial Supervisory Agency (FSA) and Financial Monitoring Service (FMS). FSA will be responsible for supervising entire financial sector, while FMS will focus on prevention of money laundering transactions.

National Bank of Georgia (NBG) will focus on price stability and prevention of inflation. NBG will be assigned sole function to sustain 1-digit inflation rate.

Amendments involve enhancing competitiveness of capital markets, allowing the functioning of more than one stock exchange. Licensing procedures were simplified and emission became easier.

According to the amendments during next 5 years personal income tax will be declining steadily from 25% to 15%. Income tax on dividends and interest will also be declining proportionally.