Economic Press Monitor April 26 - May 2, 2020	Days:  18 25 02 09 16

economic & politics

REZONANSI: “LODGERS STARTED TO QUIT LEASED APARTMENTS”

May 1, 2020 - In Tbilisi, apartments are generally rented by students, whose considerable part is employed in hotels and cafe bars, the newspaper indicates.

Within the restrictions, introduced by Georgian government because of COVID-19 spread, all restaurants, cafes and bars in Georgia were closed, respectively, the most part of students was left without income that created problems for lessors, the article specifies.




NETGAZETI.GE: “SWEDEN, AUSTRIA AND EU WILL ASSIST GEORGIAN FARMERS WITH 1.16M EUR”

April 29, 2020 - Sweden, Austria and the EU allocated 1.16 million EUR for organic agriculture in Georgia, Netgazeti.Ge reports. The funds, allocated within GRETA project, are intended for regions of Svaneti, Racha-Lechkhumi and Zemo Imereti.




TABULA: “US EMBASSY: WE ASSIST GEORGIAN GOVERNMENT IN PLANNING OF ECONOMIC REHABILITATION”

April 29, 2020 - The US embassy in Georgia declared that USAID/Georgia provides technical assistance to the Georgian government in development of the plan of economic rehabilitation after COVID-19 pandemic. “The plan will be focused on opportunities of employment growth”, the embassy said.




TABULA: “BOKERIA: THEY HAVE ILLUSION THAT THEY WILL WIN PEOPLES’ HEARTS BY HARMFUL PLAN, IT IS NONSENSE”

April 27, 2020 - Giga Bokeria, one of the leaders of oppositional European Georgia, estimates that the anti-crisis plan, presented by the Georgian government, is “nontransparent, full of harmful ideas, inadequate”.

“Team of Ivanishvili [billionaire leader of ruling Georgian Dream], perhaps, has illusion that they will win elections” (parliamentary elections, planned for October) by this plan, Bokeria declares and adds: “It is nonsense, they will win no heart by this”.




TABULA: “VASHADZE ON ANTI-CRISIS PLAN: THE GOVERNMENT MUST URGENTLY START TO LIVE WITH 6 LARI A DAY”

April 27, 2020 - Grigol Vashadze, chairman of oppositional United National Movement, declares that anti-crisis plan for Georgia has to consist of two parts – urgent ease of tax burden and urgent liberalization of monetary policy.

At that, the plan, presented by the Georgian government, suggests that self-employed have to manage to live with 6 lari a day in the conditions of lari “dropped on the floor” and inflated prices, Vashadze indicates.

macroeconomics & budget

BANKEBI DA FINANSEBI: “PAATA BAYRAKHTARI: NO TIME TO PRAISE YOURSELF, MISTER KOBA”

April 30, 2020 - President of National Bank of Georgia (NBG) Koba Gvenetadze published post on social network, insisting that decrease or zeroing of requirements for reserves in foreign currency in the banking sector will not prove itself as “medicine” for encouragement of economy, the newspaper reports.

However, Paata Bayrakhtari, vice-president of Georgian Young Financiers and Businessmen Association, considers decrease of reserve requirements is important in order “that resource, which we have and is blocked, to let in economy and to satisfy demand for dollars”.




TABULA: “HOW MOBILIZATION OF 6B LARI SHOULD BE DONE – ANTI-CRISIS PLAN OF “EUROPEAN GEORGIA””

April 30, 2020 - European Georgia considers that anti-crisis plan of the Georgian government is insufficient, non-transparent and ineffectual, Tabula says. The opposition party offers own plan instead.




BANKEBI DA FINANSEBI: “SOSO PKHAKADZE: RATE WAS 2.8 AND BECAME 3.2 – NEW WAVE OF LARI DEVALUATION IS MURDERER FOR BUSINESS”

April 29, 2020 - Soso Pkhakadze, president of Georgian Businessmen Association (unites over 400 organizations), indicates that because of COVID-19 pandemic, Georgia received shock of 3 types. These are simultaneous decline of demand and offer, sharp drop of oil prices and new wave of national currency’s devaluation, he declared on air of Public Broadcaster.




BANKEBI DA FINANSEBI: “WHAT USE OF HOTELS AS QUARANTINE SPACES COST THE STATE”

April 28, 2020 - Referring to news agency BPN, the newspaper reports that according to Institute for Development of Freedom of Information (IDFI), Georgian National Tourism Administration has signed 87 simplified procurement contracts on arrangement of quarantine spaces in hotels. Total cost of these contracts makes up 25.58 million lari.




REZONANSI: “THOUSANDS SELF-EMPLOYED WILL BE LEFT WITHOUT COMPENSATION”

April 28, 2020 - Persons, occupied in informal sector, who left without income because of restrictions, imposed in connection with COVID-19 pandemic, could register as allowance beneficiaries on special website from May 21 to June 1, the newspaper reports.

However, thousands self-employed, who lost the income, will remain beyond of privileges, as they are not counted anywhere and are unable to confirm existence of income, the article indicates.




TABULA: “TAXI LICENSE HOLDERS WILL RECEIVE SELF-EMPLOYED ALLOWANCE OF 300 LARI”

April 28, 2020 - Taxi license holders will receive one-time allowance of 300 lari, allocated by the Georgian government to self-employed, Tabula reports.

In order to receive this sum, drivers will have to present licenses and permissions, issued by local municipalities.




REZONANSI: “HOW CORRECTLY THE GOVERNMENT DISTRIBUTED FUNDS RECEIVED FOR CRISIS OVERCOME?”

April 27, 2020 - Andria Gvidiani, representative of Georgian Young Businessmen and Financiers Association, estimates that “not a single segment remained disregarded” in the anti-crisis plan, presented by the Georgian government.

Social packages, as well as branch stimulation of economy, support of agriculture are increased, even bigger development of business is provided, etc., Gvidiani specifies.

conflict and court

TABULA: “GEORGIA TERMINATES CONTRACT WITH AMERICAN “FRONTERA””

May 1, 2020 - Georgian Oil and Gas Corporation declared about termination by the Georgian side of the contract with the US oil company Frontera.

The Georgian side and the company had disputed in arbitration concerning the contract, signed in 1997.

companies

FORBES GEORGIA: “BONDS OF 58.4M LARI ON STOCK EXCHANGE – RESULT OF CORRECT ANALYSIS OF “TBC CAPITAL””

April 30, 2020 - TBC Leasing, with assistance of TBC Capital, accomplished the largest among local non-banking financial institutions public emission, denominated in lari, the magazine reports. The matter concerns bonds of 58.4 million lari, which were placed on Georgian Stock Exchange.




BANKEBI DA FINANSEBI: “RIGHT OF ACTIVITY RESTORED TO “SUPTA SAKHLI””

April 30, 2020 - Georgian government decided to restore right of activity to Supta Sakhli (Clean House, retail chain of household chemicals), the newspaper reports. Respective resolution of the government entered in force on April 28.




BANKEBI DA FINANSEBI: “COMPETITION AGENCY ISSUED RECOMMENDATIONS ON SETTLEMENT OF PROBLEMATIC ISSUES ON RETAIL MARKET”

April 29, 2020 - Georgian Competition Agency has studied data of 73 distribution companies and 16 retail chain stores. The study included contracts, total turnovers for 2018-2019, number of branches, range of products on sale.




BANKEBI DA FINANSEBI: “KHVICHA MAKATSARIA SOLD 49% IN “CAUCASUS ONLINE” TO THE CITIZEN OF AZERBAIJAN”

April 27, 2020 - Khvicha Makatsaria sold 49% in telecom operator Caucasus Online to the citizen of Azerbaijan Nasib Hasanov, the newspaper reports. The article specifies that the latter is owner of NEQSOL – the Azerbaijani holding, operating in spheres of oil, gas and telecommunications.

agriculture & food

BANKEBI DA FINANSEBI: “THE STATE SUSPENDED CONTROL OF POULTRY MEAT IMPORT, THIS IS BIG CHEATING”

May 1, 2020 - Revaz Vashakidze, founder of the Chirina and Biu-Biu companies, says that acting technical regulation on poultry meat examination was amended on April 8.

As a result, local market will be saturated with fowl with high content of water, as the mechanism of imported production control is suspended, Vashakidze declared to Bm.Ge.




BANKEBI DA FINANSEBI: “GEORGIA’S STOCKS WILL BE FILLED WITH THE US WHEAT”

April 28, 2020 - Georgia will receive 27,000 t of wheat from the US, the newspaper reports. As the article notes, the contract is already signed and freight will arrive in the country in about one month.

tourism

REZONANSI: “TOURISM IN GEORGIA HAS NO PROSPECTS UNTIL JULY AT LEAST”

May 1, 2020 - Shalva Alaverdashvili, founder of Georgian Hotels and Restaurants Federation, declares that in the sector of tourism of Georgia “expectations are pessimistic”.

“We can open hotels after July 6, but this does not mean that we will do open, as travels should restore until that”, Alaverdashvili points.