Retail Banking Financial Update

GOVERNMENT'S SUPPORT MEASURES • FISCAL STIMULUS GOVERNMENT SUPPORT IN RELATION TO PARTIAL SECOND-ROUND LOCKDOWN (DEC-20- 1H21) The Government implemented a series of support measures designed to mitigate the negative economic impact of the COVID-19 pandemic " Fiscal stimulus for affected businesses and households stood at c.4.0% of GDP in 2020. 2021 budget also targets continuation of various stimulus measures of 2.1% of GDP in the first half of 2021 Support measures combine health-related spending, transfers to households, and support to SMEs and businesses in the hard-hit sectors Strong donor support was more than sufficient to meet the COVID-19-related fiscal needs in 2020 - US$ 1.7 billion donor financing for public sector Business support measures Personal income tax exemptions Property tax exemptions for the tourism sector Tax write-offs Loan interest subsidies for tourism sector Micro grant programme Credit guarantee fund Support to households Utility subsidies Compensation for private sector employees who lost jobs Compensation for self-employed who lost jobs Transfers to vulnerable families Transfers to disabled persons Source: www.stopcov.ge GEL 515mln 260 45 20 50 40 100 GEL 545mln 270 150 30 70 27 Note: Preliminary allocations for particular measures. Actual figures may differ from the planned amounts. 5

View entire presentation