Economic Press Monitor October 30 - November 5, 2022	Days:  22 29 05 12 19

economic & politics

REZONANSI: “KOBAKHIDZE SAYS THAT DE-OLIGARCHIZATION IS REALLY NEEDED, BUT FROM THOSE WHO “RECEIVED BLOODY MILLIONS AT THE EXPENSE OF PEOPLE””

November 4, 2022 - On November 3, the Georgian Parliament approved the bill “On De-Oligarchization” in first hearing (80 votes “pro”, 9 “contra”).

“We are support de-oligarchization and prevention of oligarchs’ return to power”, declared Irakli Kobakhidze, chairman of the ruling Georgian Dream.

macroeconomics & budget

FORBES GEORGIA: “IN 2023, A RECORD AMOUNT OF 3.4B LARI WILL BE SPENT ON RETIREMENT PENSIONS IN GEORGIA”

November 4, 2022 - In 2023, 800,000 pensioners in Georgia will receive an increased pension, the magazine reports, specifying that the increase will cost the budget 494 million lari. In total, pensions will cost 3.4 billion lari, or 16% of the state budget.




REZONANSI: “DOUBLE-DIGIT ECONOMIC GROWTH WILL CONTINUE NOT ONLY UNTIL END OF THE YEAR, BUT ALSO IN THE 1^ST QUARTER OF 2023”

November 1, 2022 - For 9 months of this year, Georgia’s economic growth made up 10.2%, bringing the country to the leading position in the region, the newspaper reports.

National Bank of Georgia (NBG) forecasts a 10% growth in the country at the end of the year, and 4% in 2023.




REZONANSI: “PRICES ARE RISING 3 TIMES FASTER THAN SALARIES!”

November 1, 2022 - Irakli Petriashvili, head of Georgia’s United Trade Unions, indicates that inflation in the country has increased by almost 26% over the past 2 years, while the average salary has increased by only 9%. “Inflation has eaten up income”, he notes.

energy, oil & gas

REZONANSI: ““BUDE” HOTEL – “THE RISK THAT SVANETI WILL REMAIN WITHOUT ELECTRICITY IN WINTER STILL EXISTS””

October 31, 2022 - Hotels in Mestia (highland region Svaneti) say that the risk that Svaneti will be left without electricity in winter still exists.

Tatia Tetruashvili, founder of the hotel Bude, indicates that crypto-currency mining continues in Svaneti, which creates problems not only in winter, but also in summer.

conflict and court

REZONANSI: “CONTRACTOR ON “GOTSIRIDZE” SUBWAY STATION CAN SUE THE CITY HALL – WHAT DOES THE COMPANY SAY?”

November 3, 2022 - Tbilisi City Hall has fined the contractor company LLC Mamisoni, which rehabilitated the Gotsiridze subway station, with 600,000 lari for protraction of works for 4-5 months.

However, Nikoloz Chkadua, co-owner of Mamisoni, stated that “the company had to extend the term of the mentioned project for about 60 days” because of emerged necessity of additional works.

companies

TABULA: “WITH SUPPORT OF “SAKARTVELOS BANKI”, “VIVA GROUP” WILL BUILT ANOTHER RESIDENTIAL COMPLEX IN TBILISI”

November 4, 2022 - Viva Group started construction of a residential complex in Tbilisi, having total area of 15,149 square m. For this project, Sakartvelos Banki (Bank of Georgia) allocated $6.3 million.




BANKEBI DA FINANSEBI: ““BASISBANK” ATTRACTED 8M EUR FROM “RESPONSABILITY INVESTMENTS AG””

November 2, 2022 - A loan agreement of 8 million EUR has been signed between Basisbank and the investment fund ResponsAbility Investments AG, the newspaper reports.

Within the framework of the agreement, the funds will be used during 3 years to finance small and medium-sized businesses in Georgia.




FORBES GEORGIA: ““TBC LEASING” ATTRACTED 3M EUR FROM EBRD TO SUPPORT SMALL AND MEDIUM-SIZED BUSINESSES”

November 2, 2022 - TBC Leasing has attracted 3 million EUR from EBRD, the magazine reports. At least 70% of this resource will be used to finance investments in green technologies.




FORBES GEORGIA: “$5M RISK CAPITAL FUND “ISARI VENTURES” HAS BEEN ESTABLISHED IN GEORGIA TO MAKE INVESTMENTS IN GEORGIAN STARTUPS”

October 31, 2022 - The fund Isari Ventures has been established in Georgia as the European investment holding of the Paulsen family, the magazine reports. The Paulsen family has been investing in Georgia over the past 20 years.

transport & communications

NETGAZETI.GE: “TBILISI CITY HALL WILL NOT BUILD A BASE FOR 18-METER BUSES THIS YEAR EITHER – WHY AND WHAT CAUSED IT”

November 3, 2022 - In November 2019, Tbilisi City Hall announced that in order to procure 18-meter buses and arrange a central garage, it would take a loan from EBRD. 65 million EUR was envisaged for acquisition of 200 buses, while 15 million EUR for construction of the central garage (depot).

international cooperation

BANKEBI DA FINANSEBI: “JAPANESE INVESTORS ARE INTERESTED IN ANAKLIA PORT”

November 2, 2022 - “Japanese investors are interested in the project of Anaklia deep-water port”, declared Gennady Arveladze, Georgia’s Deputy Minister of Economy and Sustainable Development. They display also an interest in the energy sector of Georgia, he pointed.

finances & banking

BANKEBI DA FINANSEBI: “UPDATED LICENSING REQUIREMENTS FOR COMMERCIAL BANKS HAVE BEEN PUBLISHED”

November 3, 2022 - Starting from September 24, Georgian banks must meet the updated licensing requirements and submit the relevant documentation/information to the National Bank of Georgia (NBG).

NBG is also authorized to issue a conditional banking license to a legal entity, with temporary ease of minimal capital requirements.




TABULA: “WE REVEALED 9 ILLEGAL CURRENCY EXCHANGE POINTS IN AJARA, 550,000 LARI WAS SEIZED – INVESTIGATIVE SERVICE”

November 3, 2022 - Investigative Service of Georgian Finance Ministry reported that 9 facts of illegal business activity were revealed in Ajara and 10 persons are subjected to criminal liability.

The matter concerns currency exchange offices, which worked without authorization from National Bank of Georgia (NBG).




FORBES GEORGIA: “WITH ASSISTANCE OF “TBC CAPITAL”, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT – EBRD PLACED BONDS OF 55M LARI”

November 1, 2022 - With the assistance of TBC Capital, EBRD placed 3-year bonds worth 55 million lari, the magazine reports. The emission was fully bought by TBC Bank.

agriculture & food

REZONANSI: “IN NEAR FUTURE, RAISE OF BREAD PRICE IS EXCLUDED!”

November 2, 2022 - If Russia “slams the door” and does not supply Ukrainian wheat to the world, Georgia will get much cheaper wheat, said Giorgi Khanishvili, Deputy Minister of Environmental Protection and Agriculture, commenting on Russia’s withdrawal from the agreement on grain export from Ukraine.

Khanishvili grounded the possibility of cheap wheat supply with an “unprecedented stock” in Russia.




BANKEBI DA FINANSEBI: “WHEN A COUNTRY HAS A SWEET RED WINE, IT IS TAKEN OFF THE LIST OF MAJOR WINEMAKERS – PAPASHVILI”

October 31, 2022 - Businessman Lasha Papashvili declares that he does not support the development of sweet wines’ production. The country should substitute sweet wines on export markets, he believes.

construction

BATUMELEBI: “A MULTI-STOREY HOTEL IS PLANNED TO BE BUILT NEAR THE BOULEVARD, BATUMI SAKREBULO APPROVES DDP”

October 31, 2022 - It is planned to build an 8-storey hotel on Rustaveli Street in Batumi. Batumi Sakrebulo (city council) plans to approve the detailed development plan (DDP) of the project on October 31.