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Georgian Railway is set for large-scale investment, so that we may consolidate our role in the Middle Corridor - Deputy Economy Minister

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“Georgian Railway is embarking upon a process of historic renewal, encompassing the comprehensive renewal of its infrastructure, passenger, and freight operations, as well as the implementation of large-scale investment across the sector,” declared Deputy Minister of Economy and Sustainable Development, Tamar Ioseliani, following a presentation on Georgian Railway’s “historic renewal.”

“All three areas are priorities for the Georgian Government, and accordingly, large-scale and substantial investment is planned to consolidate our role in the Middle Corridor and to be a reliable, effective, and swift partner, a connecting bridge between Europe and Asia,” the Deputy Minister stated.

According to Tamar Ioseliani, the past year has been a turning point for Georgian Railway, with sweeping optimisation measures implemented and corresponding steps taken to raise efficiency.

“The savings generated through optimisation amounted, in total, to more than 230 million lari. Equally notable is the Georgian Government’s unprecedented decision to renew its locomotive and rolling stock fleet. Between 2026 and 2028, an investment of approximately one billion lari will be made to fully modernise the rolling stock and locomotive fleet. Through the introduction of new systems and digitalisation, we will be able to halve the time it takes to cross the country, become far more efficient, and double our throughput capacity,” the Deputy Minister noted.

According to Tamar Ioseliani, as part of efforts to strengthen passenger services, Georgia will acquire ten new trains over the course of two years, with five further trains due to be refurbished this year, creating the possibility of additional services on the Tbilisi–Kutaisi and Tbilisi–Akhaltsikhe routes, and improving the comfort of the passenger experience.

As regards infrastructure projects, the Deputy Minister drew particular attention to the historic Borjomi–Bakuriani railway, the restoration of which is planned for the 2027 winter season, and also touched upon completed and ongoing projects along the main railway trunk line. Tamar Ioseliani placed special emphasis on the modernisation project for the principal railway main line, which was completed last December and doubled the Georgian Railway’s throughput capacity.

Tamar Ioseliani noted that a ten-year development plan has been drawn up for Georgian Railway, envisaging investment of approximately 1.7 billion U.S. dollars.

“Over the next ten years, approximately 1.7 billion U.S. dollars will be invested directly into Georgian Railway. This aims at the comprehensive renewal of infrastructure, passenger, and freight operations alike, to establish a strong, efficient, and swift railway that will consolidate our status as a trusted partner in the region,” Ioseliani stated.

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image NBG President announces increase in refinancing rate to stabilise inflation expectations and maintain price stability

06.05.2026.16:54

“We are committed to stabilising and normalising inflation expectations to prevent any future upward pressure and to ensure a stable price level,” said Natia Turnava, President of the National Bank of Georgia (NBG).

She also confirmed that the NBG has decided to raise the refinancing rate.

“There is heightened uncertainty and geopolitical tension worldwide, with particular inflationary pressures arising from the global oil and oil products markets. For instance, if you examine Georgia’s April inflation rate, it is evident that external market factors, especially oil and oil product prices, have played a significant role in driving inflation.

Consequently, we are focusing on better managing inflation expectations. These risks and expectations are well understood globally, including in Georgia, which relies on importing oil and oil products.

No one can predict how long the ongoing conflict in the Middle East will last or how much volatility there will be in external markets. Therefore, we have decided to increase the refinancing rate, our monetary policy rate, even by a small percentage. This is a clear preventive measure designed to counteract inflationary pressures and the risk of their transmission to our economy.

In essence, this move is about safeguarding inflation expectations, preventing future inflationary pressures, and maintaining price stability. Our goal is to ensure that, at the earliest opportunity, our inflation rate gradually returns to the target of 3.0 per cent, as initially planned before the conflict in the Middle East and rising oil prices impacted the market,” Turnava explained.

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