Regulatory Alerts2020-12-29 | 239/04Rule on Recapitalization by Issuing New Shares of a Bank in Resolution Regime
The National Bank of Georgia issued Decree №239/04 to establish the procedure for recapitalizing banks in resolution through the issuance of new shares. This rule empowers the Resolution Committee to bypass standard shareholder approval processes, allowing the direct issuance and sale of shares to existing or third-party investors to stabilize the institution. It further mandates specific notification timelines for shareholders, sets strict deadlines for capital contributions, and outlines the regulatory assessment required for acquirers obtaining significant stakes.
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