Economic Press Monitor September 29 - October 5, 2019	Days:  21 28 05 12 19

economic & politics

TABULA: ““MTAVARI ARKHI”: COMPANIES OF VOLSKY’S FRIEND RECEIVED FROM THE BUDGET $30M AND 50M LARI”

October 4, 2019 - Referring to newly established broadcasting company Mtavari Arkhi (Main Channel), Tabula reports that company, owned by friend of the parliamentary majority leader Giorgi Volsky, received from the budget 50 million lari through uncompetitive tender and over $30 million – through other tenders.

The matter concerns air company AkAir, conducting internal flights from Natakhtari to Ambrolauri and Mestia, in which 49% belong to Amiran Toronjadze, the childhood friend of the MP.




NETGAZETI.GE: “UNLIKE KHAZARADZE, I BAKE KHACHAPURI WELL, AND IF IT IS NECESSARY, I WILL BUILD THE PORT – THE MINISTER”

October 4, 2019 - “Unlike Mamuka Khazaradze, I bake khachapuri well”, Georgia’s Minister of Regional Development and Infrastructure Maia Tskitishvili declared, pointing that “I build roads well and if it is necessary, I will build the port very well”.

The Minister said the mentioned in response to Khazaradze’s statement that “Tskitishvili has no idea at all, what infrastructure is”, Netgazeti.Ge reports.




TABULA: “FORMER ECONOMY MINISTER GIORGI KOBULIA CONSIDERS RETURN TO POLITICS”

October 3, 2019 - “I said more than once that I consider return to politics”, Georgia’s former Minister of Economy and Sustainable Development Giorgi Kobulia declares. “I will make final decision approximately at the beginning of November”, he says.




NETGAZETI.GE: “VOTING ON NARMANIA’S CHAIRMANSHIP IN THE COMMISSION IS POSTPONED”

October 2, 2019 - Georgian Parliament postponed voting on the candidacy of David Narmania, nominated on the post of chairman of the National Energy and Water Supply Regulating Commission, Netgazeti.Ge reports.

The decision was caused by statement of the opposition MP Khatuna Gogorishvili, who reminded that Georgian President could nominate only the Commission member.




TABULA: “FINANCE MINISTER: CORRUPTION, AS THE PROBLEM, DOES NOT EXIST, AS THE EXCEPTION – PROBABLY, YES”

October 2, 2019 - Georgia’s Finance Minister Ivane Machavariani indicates that in the Open Budget Index, Georgia is on the 5^th place and outstrips such countries as Germany, France, England, Japan.

“This indicator does not mean that corruption does not exist in Georgia”, Machavariani declares.

macroeconomics & budget

TABULA: “AVERAGE SALARY IN THE ECONOMY MINISTRY MAKES UP 5,729 LARI, IN INFRASTRUCTURE – 5,131”

October 4, 2019 - Referring to research of TI Georgia, Tabula reports that among 8 Georgian ministries, the highest average salary is in the Ministry of Economy and Sustainable Development, while the highest median – in the Ministry of Regional Development and Infrastructure.

In particular, average salary in the Economy Ministry makes up 5,729 lari, while in the Infrastructure Ministry – 5,131 lari.




BANKEBI DA FINANSEBI: “VOLUME OF PENSION CONTRIBUTIONS EXCEEDED 387M LARI”

October 3, 2019 - As of September 30, pension contributions in Georgian Pension Fund exceeded 387 million lari, the newspaper reports.

According to the Pension Agency, currently in accumulative pension system (enacted this year) 896,526 unique participants are registered.




TABULA: “THE GOVERNMENT WILL SPEND 200M FOR THE PENSION FUND – INVESTMENT OF FUNDS IS NOT STARTED YET”

October 2, 2019 - Referring to the draft state budget-2020, Tabula reports that Georgian government will spend 200 million lari for financing of the Pension Fund in the next year. Spending of the current year makes up 110 million lari.




BANKEBI DA FINANSEBI: “ADDITIONAL RESOURCE SHOULD BE FOUND IN ORDER TO LAUNCH PROJECT OF SYSTEMIC LAND REGISTRATION”

October 1, 2019 - “We have to assign the Finance Ministry to find an additional resource in order to launch project of systemic land registration”, Georgia’s Prime Minister Giorgi Gakharia declared.

According to Gakharia, “these will be not catastrophically large sums”, while as a result, “it will become possible to include more land in economic activity”.




FORBES GEORGIA: “ISET FORECASTS ECONOMIC GROWTH OF 7.1% IN Q3”

September 30, 2019 - ISET (International School of Economics at Tbilisi State University) released new forecast for the 3rd quarter, according to which Georgia’s GDP growth will make up 7.1%. The magazine indicates that this is by 0.4 percentage points lower than the previous forecast.




BANKEBI DA FINANSEBI: “LARI NOT ONLY WILL BE STABILIZED, BUT ALSO BEGIN TO STRENGTHEN UNTIL END OF THE YEAR”

September 30, 2019 - Georgia’s Finance Minister Ivane Machavariani assures that actions of National Bank of Georgia (toughening of monetary policy and currency intervention) “will bear fruits” and “lari not only will be stabilized, but also will begin to strengthen until end of the year”.

The Minister insists that “fiscal policy, pursued by the authorities, does not promote devaluation of lari in any way”.




TABULA: “AUDIT: AJARA ROADS DEPARTMENT HAS SPENT FUNDS, BUT CONDUCTION OF WORKS IS NOT CONFIRMED”

September 30, 2019 - Georgian State Audit Service studied rehabilitation and construction of roads and melioration infrastructure in Ajara in 2016-2017.

As the Service concluded, Ajara Roads Department has spent budgetary funds, but conduction of corresponding works is not confirmed, Tabula reports.

energy, oil & gas

FORBES GEORGIA: “AFTER SEVERAL YEARS OF LOSS, “ENGURHES” FINISHED 2018 WITH PROFIT OF 15.6M”

October 2, 2019 - For the first time for the last 4 years, state-owned LLC EngurHES has finished year with a profit, the magazine reports. In 2015, losses of the hydroelectric station made up 13.1 million lari, in 2016 – 7.3 million lari, in 2017 – 10 million lari, while in 2018, the company reported profit of 15.6 million lari.

companies

FORBES GEORGIA: ““LOPOTA” BOUGHT OUT SHARES FROM PARTNERSHIP FUND FOR $5.9M”

October 1, 2019 - LLC Lopota bought out own shares from Georgian Partnership Fund for $5.9 million, the magazine reports.

In 2017, the parties signed an agreement, under which the Fund invested $5.4 million in the joint company.

transport & communications

NETGAZETI.GE: “IN POTI, NOT CONSTRUCTION OF DEEP-WATER PORT, BUT EXPANSION OF TERMINAL BEGINS”

October 1, 2019 - Georgia’s Minister of Regional Development and Infrastructure Maia Tskitishvili explains that in Poti, not construction of deep-water port, but only expansion of one terminal begins.

It was known already several months ago that the US OPIC decided to finance this project with $50 million, the Minister declared.




BANKEBI DA FINANSEBI: “NATIA TURNAVA – PROSPECT SHOWED UP OF RESUMPTION OF AIR COMMUNICATION WITH RUSSIA”

September 30, 2019 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava said that “the prospect has showed up of cancellation of [Russian] aviasanctions, imposed after events on June 20-21 [protest actions in Tbilisi after emergence of Russian MP in a chair of Georgian Parliament’s speaker) “. She declared this in the program Business Partner of Public Broadcaster.

ecology & health

BANKEBI DA FINANSEBI: “HAZARDOUS TOBACCO IS ON SALE IN THE COUNTRY – CONTROL MECHANISMS DO NOT EXIST”

October 4, 2019 - Georgian Healthcare Ministry claims that after increase of taxes on tobacco products, consumption decreased by 3%, but it is difficult to tell how exact these data are, as most part of smokers have turned to cut tobacco, the newspaper says.

Cut tobacco is not taxed, while quality of imported tobacco is not controlled, the newspaper points.

construction

BANKEBI DA FINANSEBI: “DEVELOPMENT BUSINESS GIVES UP THE GHOST”

October 3, 2019 - As a result of toughened construction and banking regulations, turnover of Georgian construction sector decreased in the 1^st quarter by 9.6%, while in the 2^nd quarter – by 4.6%, the newspaper reports with reference to Sakstat.

The article notes that in 2017-2018, the sector had grew by 22% on average.

tourism

FORBES GEORGIA: “WHAT SUM GEORGIANS SPEND OUTSIDE THE COUNTRY AND WHERE THEY TRAVEL”

October 1, 2019 - Referring to Georgian National Tourism Administration, the magazine reports that 28,494 primary exit visits were made from the country in the 2^nd quarter.

Majority of these visits (37.3%) was made for meeting with friends/relatives.