Remittances play an increasingly large role in Georgia’s economy and maintaining the
stability of the national currency.
In 2019, $ 1.7 billion
was transferred to Georgia from abroad, a growth was observed in the beginning
of 2020. The largest donors were Russia, Italy, Spain and Greece. All these
countries are now experiencing a severe economic crisis - oil prices have
fallen, quarantine due to COVID-19 has completely paralyzed economy, reduced
household incomes to a minimum.
All this causes a decline in
the volume of remittances from abroad and creates an additional burden both on the
national currency exchange rate and on the economy as a whole.
Despite no official
statistics on March exist, a representative of quick money transfer systems speaks
about a sharp decrease in the volume of money
According to Levan
Tavartkiladze, manager of the Intelexpress company, the volume of transfers
from Italy, Spain and Greece has significantly decreased.
“A decline in money transfers is being observed globally and affects all countries as many states
declared quarantine, the economy has stopped, and incomes have fallen sharply.
This is especially true of Italy and this situation has strongly reflected in Georgia - the amount of
transfers from this country decreased by 50% compared with March 2019. A decline
is registered from Spain and Greece, but
it is not so serious as these countries introduced quarantine at the end of March. The real decline in money
transfers from Spain and Greece will be known in April, ”he explains.
In the words of the founder of Rico Credit MFO Lasha
Nikolaishvili, the volume of transfers from abroad decreased by 40%, but at the
same time, transfers from Georgia to abroad increased by 20-30%.
“We mainly work with countries such as Israel, Greece,
Italy, Spain, and Germany, the countries
that suffered the main blow of the pandemic. Moreover, it’s worth mentioning that transfers from Georgia to these countries
increased by 20-30%, ” Nikolaishvili notes.