Economic Press Monitor July 26 - August 1, 2020	Days:  18 25 01 08 15

economic & politics

TABULA: “KELLY DEGNAN: IT IS IMPORTANT TO TAKE SERIOUSLY LETTERS OF CONGRESSMEN”

July 31, 2020 - Tabula reports that 6 American congressmen (Republicans Markwayne Mullin, Jodey Arrington, Bill Flores, Will Hurd, Brian Babin and Randy Weber) addressed the US Secretary of State Mike Pompeo and expressed concern because of deteriorated democratic governance in Georgia.

The US ambassador in Georgia Kelly Degnan indicated that “we have to listen and treat seriously letters of congressmen”.




TABULA: “CONVERSATION BETWEEN POMPEO AND GAKHARIA – WHAT STATE DEPARTMENT WRITES AND WHAT THE GOVERNMENT REPORTS”

July 28, 2020 - Telephone conversation was held between the US Secretary of State Mike Pompeo and Georgia’s Prime Minister Giorgi Gakharia.

As administration of Georgian government said, the State Secretary gave a high assessment to effective steps of Georgian government in respect of fight against COVID-19 pandemic.




FORBES GEORGIA: “WHAT 2-MONTH CORONAVIRUS CONTAINMENT COST TO GEORGIA”

July 28, 2020 - The magazine publishes opinion, which analyzes decisions of Georgian government in respect of COVID-19 prevention and their results.

Authors of the opinion, businessmen Revaz Vashakidze and Avtandil Gogol, conclude that “total restrictions, introduced in March, were a mistake, and this should be envisaged in case the virus will have second or third waves”.




BANKEBI DA FINANSEBI: “CURRENTLY, PARTNERSHIP FUND WITH ITS STRUCTURE REALLY DOES NOT MEET TODAY’S REQUIREMENTS”

July 28, 2020 - David Saganelidze, executive director of Georgian Partnership Fund, indicates that “talks about reforming of the Fund continue for a long time” and “these changes are already launched”.

Saganelidze points that the Fund, created in 2010, really does not meet with its structure today’s requirements now.




TABULA: “MFA ON POSSIBLE CUT OF THE US ASSISTANCE: ENACTMENT IS NOT OF OBLIGATORY NATURE”

July 27, 2020 - The US House of Representatives approved (with 244 votes pro and 189 – contra) the bill, which could suspend 15% of the US financial assistance to Georgia, Tabula reports.

The decision will depend on whether the government of Georgia takes effective steps for implementation of electoral reform, ensuring judicial independence, rule of law, etc.

macroeconomics & budget

BANKEBI DA FINANSEBI: “IN 2015-2020, SIX LARGE STATE COMPANIES SUFFERED LOSSES TOTALED TO 1.8B LARI BECAUSE OF LARI DEVALUATION”

July 30, 2020 - Review, published by the IMF, indicates those large state-owned Georgian companies, which suffered the most substantial losses because of lari rate fluctuations within the last 5 years.

Referring to the document, the newspaper reports that in 2015-2020, 6 large state enterprises suffered losses totaled to 1.8 billion lari.




TABULA: “IN 2019, THE GOVERNMENT ISSUED BY 36M LARI MORE BONUSES/SUPPLEMENTS”

July 30, 2020 - Referring to media project Budget Monitor, Tabula reported that during 2019, Georgian government spent for bonuses 35.9 million lari that by 3.6 million lari (by 11%) exceeds indicator of 2018.

Besides, 234.5 million lari were issued in 2019 as salary supplements, exceeding indicator of 2018 by 32 million lari (by 15.8%).

energy, oil & gas

BANKEBI DA FINANSEBI: “SOSO PKHAKADZE: WE WILL BE FORCED TO RAISE FUEL PRICE BY 10 TETRI”

July 29, 2020 - Soso Pkhakadze, president of Wissol Group, says that in parallel with increase of global fuel prices, correction of prices will take place in Georgia too.

Pkhakadze declared this to BMG and noted that his company has certain stocks and therefore does not apply correction at once.

conflict and court

BANKEBI DA FINANSEBI: “DAVID ZEIKIDZE: THIS IS NOT A FAMILY BUSINESS DISPUTE – THIS IS MY LITIGATION WITH CRIMINAL JUDGES AND SWINDLER LAWYER”

July 27, 2020 - Court considers a dispute on stake of 50% in Liderfood (Georgian company of meat products). In parallel, opposing parties do not cease mutual recriminations, the newspaper says.

companies

TABULA: ““AIRZENA” ADDED PER ONE CHARTER FLIGHT IN DIRECTIONS OF PARIS AND BERLIN IN AUGUST”

July 31, 2020 - Georgian carrier Georgian Airways (AirZena) added per one charter flight to Paris and Berlin in August, Tabula reports.

In particular, flight between Tbilisi and Paris will be made on August 4, while between Tbilisi and Berlin – on August 7.




BANKEBI DA FINANSEBI: “PARTNERSHIP FUND REDUCES BY $8M STARTING SALE PRICE OF 5-STAR “BORJOMI LIKANI” HOTEL”

July 31, 2020 - Georgian Partnership Fund put 5-star Borjomi Likani hotel on public auction on December 6, 2019, but no investor become interested. That time, starting price at the auction made up $37.57 million.




BANKEBI DA FINANSEBI: “UNDERWATER INTERNET CABLE PROJECT OF $35M – “BY MEANS OF THE PROJECT, INTERNET WILL DECREASE IN PRICE EVEN MORE””

July 30, 2020 - Mamia Sanadiradze, former owner of Caucasus Online and director general of Diamond Link Global, declared that starting from 2022, Georgia will have Internet access through new underwater cable.

“Work on a new cable is already started.




FORBES GEORGIA: “GEORGIA’S FREE ZONES EXPERIENCE FOR ACCELERATION OF ECONOMIC RECOVERY”

July 29, 2020 - Georgian free industrial zones Hualing (Kutaisi) and Poti will join program of free zones’ certification, developed by the World free zones organization (World FZO), the magazine reports. The article specifies that within this program, a free zone receives the status, corresponding to its innovative, environmental and technological development.




BANKEBI DA FINANSEBI: “IN AZERBAIJAN, SHAREHOLDERS OF “YELO BANK”, SUBSIDIARY OF “TBC”, INCREASED CAPITAL OF THE BANK”

July 28, 2020 - Shareholders of Yelo Bank, Azerbaijani subsidiary of Georgian group TBC, increased capital of the bank by 30 million AZN (about $17.65 million), the newspaper reports.

As the article notes, the bank will offer in the 3^rd quarter new opportunities to clients, including digital products and new branches.




BANKEBI DA FINANSEBI: ““LILO MALL” POSTPONED EXPANSION PLAN UNTIL 2021”

July 27, 2020 - Giorgi Kvaratskhelia, director general of Lilo Mall (Tbilisi shopping center), declared to Georgian Public Broadcaster that the company postponed the plan of expansion until 2021. At this stage, compensation of losses, inflicted by COVID-19 pandemic, is underway, he said.




FORBES GEORGIA: “MOST PROFITABLE AUDITOR COMPANIES”

July 27, 2020 - The magazine publishes rating of 15 largest auditor companies, operating in Georgia. The rating is confirmed by Grant Thornton and Ebit Group.

transport & communications

TABULA: “BY CITY HALL’S CALCULATION, RELOCATION OF BUS STOPS TO FAST LANE SAVES 500M”

July 30, 2020 - Victor Tsilosani, head of Tbilisi City Hall’s Agency for Transport and Urban Development, declared that relocation of bus stops on Chavchavadze Avenue to fast lane increases speed of buses and decreases waiting time for passengers.

“Traffic obstacles had reduced speed by 30% and increased waiting time”, Tsilosani said.

international cooperation

FORBES GEORGIA: “BILATERAL ADVANTAGE”

July 31, 2020 - Swedish ambassador to Georgia Ulrik Tidestrom points that gender equality is the Swedish government’s priority both within the country and in foreign policy.

The ambassador says that when we consider support of gender equality reform, we implement it in two directions.

finances & banking

BANKEBI DA FINANSEBI: “ALEXANDER DZNELADZE: BANKING SECTOR’S ASSETS WILL EXCEED GDP VOLUME UNTIL END OF THE YEAR”

July 29, 2020 - Alexander Dzneladze, president of Georgian Bank Association According, expects that assets of Georgian banking sector will exceed volume of the country’s GDP until end of the year. He declared this on air of Public Broadcaster and noted that the banking sector is the largest in national economy.

agriculture & food

FORBES GEORGIA: “WITH ASSISTANCE OF “SAKARTVELOS BANKI”, BROILER CHICKEN FARM WAS BUILT IN KASPI”

July 29, 2020 - With financial participation of Sakartvelos Banki (Bank of Georgia), poultry farm was built in the village of Zemo Chocheti (Kaspi municipality of Shida Kartli region), reports the magazine. The article specifies that investments in the project totaled to 22 million lari.