The U.S. Embassy to Georgia is closely following developments surrounding TBC Bank.

“The conclusion of these matters, how that conclusion comes about, and how it is explained can all have significant implications for Georgia’s reputation as a place in which to invest and do business,” the Embassy told the Accent.

As for the investment environment in Georgia, the Embassy said that Georgia has worked hard to identify and implement reforms to improve the business environment.

“It recently improved its ranking to sixth, up from ninth the previous year, in the World Bank Group’s annual Doing Business report,” it added.

“The United States urges Georgia to take further steps, including to ensure that relevant laws and policies are well implemented.  Also important will be judicial reforms to ensure business disputes are adjudicated fairly, transparently, and consistently.  We will also continue to seek ways to expand U.S.-Georgia trade and investment ties, and help Georgia realize its potential to become a vital hub in the trade, logistics, and energy corridors linking European and Asian,” the Embassy said.

The Chairman of the Supervisory Board of TBC Bank, Mamuka Khazaradze, has resigned from the post following the decision of the Supervisory Board to withdraw lawsuit against the National Bank of Georgia (NBG).

Khazaradze announced his resignation on February 21, a week after the NBG requested stakeholders to remove him and his deputy Badri Japaridze from their positions, due to alleged violation of the conflict-of-interest legislation.

Khazaradze denied the accusations again, saying the bank has suffered “from serious reputational damage.” “Our group, our bank have come under [unprecedented] attack, and as a result, our stakeholders have lost USD 200 million, which has also affected our country,” he said.

“Unfortunately, none of the state officials, including the Prime Minister and his ministers, have expressed readiness to meet us in person and get acquainted with this important case both for our team and for our country; although I personally wrote them and sent them relevant files for their information, I have not heard back from them,” he added.

Khazaradze then stressed he “came to realize,” that the goal of the decision was to discredit him personally, and that “companies in Georgia are supposed to have a ceiling on growth.”

“Such attacks directly affect the bank’s reputation; the bank may end up in a lengthy dispute with the regulator, particularly when the latter is not free in its decisions,” he also noted, adding that the Supervisory Board decided to withdraw the lawsuit “in the interests of stakeholders and depositors.

 "Therefore, I have decided to leave the bank, where I have spent 27 years of my life – the bank that I have turned into the region’s biggest business from [the initial capital of] USD 500. I hope the decision will positively contribute to the bank’s development in a stable and calm environment. [From now on,] I will devote my energy to implementing the country’s most important project – Anaklia deep-sea port – and I hope, I will be allowed to bring the project to completion,” Khazaradze concluded.

TBC Bank, the leading Georgian banking company, is facing criminal investigation over money-laundering allegations involving a USD 17 million transaction that took place in 2008. The bank denies the charges.