The Budget and Finance Committee discussed with the I reading the bill on Deposit Insurance System; and the draft organic law on National Bank of Georgia.

As the Chair stated, the establishment of the deposit insurance system was part of the EUAA economic part, and engagement of the legal entities in this system is the next step for approximation to the European standards, which will further increase the stability and reliability of the financial system.

“Let me underline that the strict oversight, the adequate monetary-credit policy and effective deposit insurance system serve as the basis for the sustainability of the financial system and we take the next step in this direction. If the capacity of the deposits insured in the bank sector constitutes 4 bl. GEL, the enactment of the law will increase the number”, - Irakli Kovzanadze stated.

According to the First Deputy Economic Minister, Ekaterine Mikabadze, the individual amount of the regular insurance deposits for each commercial bank, based on the analysis of the risks, shall be postponed, the law on Deposit Insurance System will be brought in compliance with the legislation, the detected gaps will be eliminated, the efficiency of the Deposit Insurance Agency will increase, and the insurance-related processes will be better regulated.

The bill envisages the engagement of the legal entities, namely if the current edition envisages the deposits of natural persons solely, the changes supplement the list by the legal entities.

The bill specifies the term “deposit” and determines that the Agency, other than the State Treasury, can have an account in the National Bank for accumulation of the assets in view of the daily accruals.

The bill also specifies that the indemnification issue-related costs shall be covered from the deposit insurance fund to prevent the subordination to the law on State Procurements and to ensure the promptness of the remuneration.

The Agency, in view of indemnification of the depositors, shall be entitled to open the account in the agent bank. The bill determines the internal and external audits. One of the changes envisages the engagement of the legal entities as of January 1, 2022. The limit of the deposit insurance for the natural persons since July 1, 2020, has been increased from 5000 GEL to 15 000 GEL, the same as for the legal entities.

The Committee approved the bills and discussed the bill on Enforcement Code.

According to Mikheil Sarjveladze, the Code shall replace the Law on Enforcement Proceedings.

“It is a very important legal act regulating the enforcement process of the documents, determining the arrangement and activity of the Enforcement Chamber, and rule and terms of services by the National Enforcement Bureau. The bill is entailed with the fact that the law on Enforcement Proceedings adopted on April 16, 1999, is outdated and fails to meet the modern challenges. This sphere needs a uniform, systematized document based on the principles of legality, proportionality and human rights”, - he stated.

The bill envisages the creation of the systematized legal act aiming at the formation of a new, effective enforcement system, dissociation of the rights and duties of the parties, simplification of the enforcement process etc.

The Code will facilitate further harmonization with the EU law.

The reporters answered the questions.

According to the Chair, I. Kovzanadze, the Committee has some remarks concerning certain Articles, however, in general, the Committee approves the bill. The Committee discussed the bill on General Education.

According to Giorgi Amilakhvari, the bill envisages the authorization of schools to terminate the status to the pupil with financial liability prior to the commencement of the new academic semester. In case of the failure of such pupil to resort to another school, the Ministry of Education, under the legislation, shall ensure the accessibility to the general education.

The school shall as well, in case of the termination of the status due to the financial liability or due to the mobility to another school, delegate the personal file of a pupil and other documents to the recipient school the next day upon the request.

I. Kovzanadze asked about the protection of the interests of the children and their parents. As the reporter elucidated, the pathos of the bill envisages the interests of the children and the parents.

“In case of the liability within the current semester, the pupil shall receive general education in school despite the liability”, - G. Amilakhvari noted.

MPs expressed their remarks concerning the enactment term, protection of the rights of the children and parents, accessibility to high-quality education etc.

As the Chair stated, the bill shall not be enacted in an immediate manner but shall be postponed due to the pandemic and the economic crisis.

The parents shall be preliminarily notified by the school about the termination. Providing these remarks, the Committee approved the bill.