Georgia's parliament overrides presidential veto on banking supervision bill

Georgia's Parliament on Thursday overrode a presidential veto on a package of bills that removes banking supervisory functions from the Georgian National Bank (NBG).

The veto was overturned by the Georgian Dream parliamentary majority group with 81 votes, five more than the required minimum of 76.

Thursday's vote was preceded by lengthy debates a day earlier at the parliament's first sitting after the summer recess.

In late July, President Giorgi Margvelashvili vetoed the controversial bill, which has sparked criticism from financial institutions, business associations and opposition parties, saying that he was critical towards both "the hasty process" through which the bill was adopted and "its content."

According to the bill, a seven-member board will be established to run a planned Financial Supervisory Agency.

The NBG president and one more member of the central bank's board will only take two seats, while five other seats will be occupied by candidates nominated by the government and confirmed by the parliament.

Also, the head of the board will be nominated by the board members and confirmed by the parliament.

One of the main criticisms of the bill is that it is politically motivated, and shifts too much power from the bank to the government.

According to the constitution of Georgia, a simple majority is required to override a presidential veto. Endit