**Georgia’s Financial Independence at Risk**
A new agreement between the National Bank of Georgia and China‘s Central Bank has raised concerns about the country’s financial sovereignty. The Memorandum of Understanding was signed on March 26, 2025.
The agreement covers cooperation in monetary policy, financial technologies, payment systems, and securities market development. However, critics say this could expose Georgia’s economy to risks associated with China’s growing financial influence.
**”Debt Trap Diplomacy”**
The government has been accused of deepening the country’s economic dependence on China through its foreign policy decisions. The rejection of EU financial assistance and increased cooperation with Chinese-dominated international financial institutions are seen as concerning steps.
Cooperation with China’s banking sector carries significant risks, including financial opacity, political pressure, corrupt schemes, and potential loss of strategic assets in case of debt non-payment.
**International Practice**
The use of “cross-default” clauses by Chinese financial institutions has been highlighted. These clauses grant creditors leverage for political and economic pressure.
**Georgia Must Act**
In this situation, it is crucial for Georgia to safeguard its financial sovereignty and remain committed to international standards. The government’s economic policies and agreements with foreign financial institutions should serve the country’s long-term interests rather than strengthen a foreign state’s influence.
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