From January the 1st, 2022 amendments to the Georgian Law on “Deposit Insurance System” comes into force, according to which the deposits of Legal Entities will be also insured.
The Deposit Insurance System in Georgia was enacted on January the 1st 2018. The system is the best and appropriate mechanism for protecting depositors around the world. The Deposit Insurance System protects each depositor and represents an important component of financial safety net. The Deposit Insurance System raises public confidence towards the banking sector and therefore stimulates the growth of savings.
As a result of the four-year operation of the system, a sufficient basis has been created for adding Legal Entities to the system, which is an important step in terms of approximation with the best international practice. Moreover, it also increases the role and importance of the insurance system as a component of a financial safety net.
As of November 2021 the total Individuals’ deposits are 19,592,952,869 GEL, out of which 4,277,486,929 GEL is insured. After adding the Legal Entities to the system, their insured deposits will be approximately 400 mln GEL.