Economic Press Monitor September 27 - October 3, 2020	Days:  19 26 03 10 17

economic & politics

NETGAZETI.GE: “AMBITION OF “DREAM” IS TO CREATE CONDITIONS FOR APPLICATION ON THE EU MEMBERSHIP IN 2024 – KOBAKHIDZE”

October 2, 2020 - Irakli Kobakhidze, executive secretary of ruling Georgian Dream, declared that “Our election program is based on ambition of political team of Georgian Dream to create all conditions in order that Georgia had applied for full membership in the EU in 2024”. He said this on October 1, at presentation of the party’s report and election program.




BANKEBI DA FINANSEBI: “MAMUKA KHAZARADZE – OUR ECONOMY WITHIN THE LAST 6 MONTHS SUFFERED LOSSES FOR 1 BILLION DOLLARS”

September 30, 2020 - Leader of oppositional political association Lelo for Georgia and founder of Georgia’s largest TBC Bank Mamuka Khazaradze declares that Georgian economy “is in very serious crisis, and this situation worsens day by day”. “Devaluation of lari brought our citizens, our population in very grave situation”, he points.




TABULA: ““WE WILL UNDERTAKE EXTRAORDINARY REFORMS IN ECONOMY AND EDUCATION” – AGREEMENT OF OPPOSITION”

September 29, 2020 - Opposition parties agreed to undertake “extraordinary reforms” in spheres of economy and education, Tabula reports. Participants of the agreement are Girchi, European Georgia, National Movement, Strategy Agmashenebeli and United Georgia.

macroeconomics & budget

BANKEBI DA FINANSEBI: “THE GOVERNMENT ALLOCATED 60M LARI FOR COMMUNAL SUBSIDIZING DURING THE WINTER”

October 2, 2020 - The newspaper reports that Georgia’s draft budget-2021 envisages 60 million lari for subsidizing of population’s utilities bills. The subsidizing is carried out because of economic problems, caused by COVID-19.




BANKEBI DA FINANSEBI: “EVERY 7^TH PERSON IN GEORGIA RECEIVES LIVING ALLOWANCE – WHERE PEOPLE NEED MOST OF ALL”

September 30, 2020 - About 13.2% of Georgian population, or approximately every 7^th person, receives living allowance, the newspaper reports.

In particular, according to August data of Social Services Agency, 138,483 Georgian families (493,088 people in total) were beneficiaries of living allowance.




REZONANSI: “ALL LINKS PARTICIPATING IN SUB-STANDARD APPLES’ SUBSIDIZING PROGRAM ARE HAPPY”

September 30, 2020 - Because of sharp decrease of prices on international market, Georgian Ministry of Environmental Protection and Agriculture launched program of sub-standard apples’ subsidizing, which was funded with 3 million lari from the budget, the newspaper reports.

The article specifies that the state subsidy of 0.1 lari per 1 kg will be issued to those apple processing companies, which will buy until December 1 sub-standard apples from individuals for not less than 0.22 lari per 1 kg.




REZONANSI: “WHO PLAYS WITH LARI? – FINANCIERS EXPECT STABILIZATION AT 3.20”

September 30, 2020 - Georgian currency, which had aspired to the next anti-record (depreciation), becomes stronger for the last two days, the newspaper says. Now, official exchange rate makes up 3.2878 GEL/USD.




TABULA: “FINANCE MINISTER ON LARI: CRITICIZING IS EASY, THE PANDEMIC STRUCK THE BIGGEST BLOW TO TOURISM”

September 28, 2020 - “Criticizing is easy, but the fact is that this pandemic struck the biggest blow to tourism, i.e. to our strongest export potential”, Georgia’s Finance Minister Ivane Machavariani declares. “That put in considerable dose a pressure upon lari during whole this period from the pandemic start and this pressure upon lari exists”, he said in interview to Forbes.




KVIRIS PALITRA: “WHAT COULD SUSPEND FALL OF LARI?! – 9 REASONS, WHICH CAUSE FLUCTUATIONS OF NATIONAL CURRENCY”

September 28, 2020 - For the last month, Georgian lari depreciated against the US dollar by 26 tetri and now, official rate makes up 3.3332 GEL/USD. The depreciation will be followed in the next few days by mass increase in prices, the newspaper says.




BANKEBI DA FINANSEBI: “IVA CHKONIA – LARI ALREADY EXCEEDED THAT CRITICAL MARK, AFTER WHICH RISE OF PRODUCTION IN PRICE BEGINS”

September 28, 2020 - Iva Chkonia, head of Georgian Importers Union, indicates that as he said earlier, if the rate reaches mark of 3.1 GEL/USD, “rise of production in price will be not only expected, but inevitable”. “That was the maximum rate, which business operators can take”, he explains.

conflict and court

FORBES GEORGIA: ““NEQSOL HOLDING” WILL BRING AN ACTION AGAINST GEORGIA TO INTERNATIONAL ARBITRATION COURT”

October 2, 2020 - Azerbaijani company NEQSOL Holding will bring am action against Georgian government to the International Centre for Settlement of Investment Disputes (ICSID, part of the World Bank Group), the magazine reports.

In the released statement, the company indicated that decision, made by Georgian National Communication Commission on October 1, represents expropriation of lawfully acquired assets of NEQSOL Holding.

companies

FORBES GEORGIA: “150 MOST PROFITABLE COMPANIES OF GEORGIA”

October 2, 2020 - The magazine publishes rating of the most profitable companies of Georgia, prepared in partnership with auditor company Grant Thornton and consulting company Ebit Group. The rating is based on the companies’ audited reports for 2018.




BANKEBI DA FINANSEBI: “IN KUTAISI FREE ZONE, CONSTRUCTION OF PLASTIC PLANT WILL BEGIN SINCE 2021”

September 29, 2020 - Soso Nibladze, head of Kutaisi industrial zone Hualing (operates for about 4 years), says that construction of plastic plant will begin in the zone since 2021. The enterprise, in which 3 million EUR will be invested, will employ 120-150 people, he reported on air of Public Broadcaster.

finances & banking

REZONANSI: “RIGHT AFTER END OF GRACE PERIOD, CREDITS GRABBED BUSINESS AND POPULATION BY THE THROAT”

September 29, 2020 - Academician Avto Silagadze considers that “business and population will have big problems in future”. “It became already obvious that the economy will not recover and naturally, that will cause bankruptcies of some businesses”, he says.




BANKEBI DA FINANSEBI: “REQUIREMENT ON GROWTH OF MINIMUM CAPITAL LIMIT FOR INSURANCE COMPANIES IS DELAYED”

September 28, 2020 - David Onoprishvili, head of Georgian State Service for Insurance Supervision, declared that requirement on increase of obligatory minimum volume of chartered capital for insurance companies is delayed. He said this at the meeting in Georgian Business Association.

agriculture & food

REZONANSI: “WE COMPLETELY CONTROL BREAD PRICE – WHETHER BREAD PRICE WILL GROW, COMMENT OF AGRICULTURE MINISTER”

September 29, 2020 - Georgia’s Minister of Environmental Protection and Agriculture Levan Davitashvili declares that “at this moment, we completely control bread price”. “This is the most sensitive category, and I want to say with full responsibility to the population that we do not expect increase in prices”, he assures.