Economic Press Monitor March 31 - April 6, 2019	Days:  23 30 06 13 20

economic & politics

FORBES GEORGIA: “VISIT OF CHRISTINE LAGARDE TO TBILISI WILL TAKE PLACE IN MAY”

April 5, 2019 - Managing director of the IMF Christine Lagarde will visit Tbilisi in the second half of May. As the magazine reports, Lagarde will arrive to Tbilisi after her planned tour to Kazakhstan.




TABULA: “OSGF: 68.8% THINK THAT OFFICIALS USE THE POWER FOR OBTAINING PERSONAL BENEFIT”

April 4, 2019 - Survey, conducted by Open Society – Georgia Foundation (OSGF), showed that 68.8% of Georgia’s population consider that officials use power for obtaining personal benefit.

58.6% believe that officials patronize business in exchange for a reward.




BANKEBI DA FINANSEBI: “IN PRE-ELECTION PERIOD OF 2018, BROADCASTERS AIRED FREE POLITICAL ADVERTISING OF 30M LARI”

April 4, 2019 - Referring to Georgian National Communication Commission, the newspaper reports that during the pre-election period of 2018, Georgian broadcasters aired free political advertisement of about 30 million lari, while paid advertisement amounted to 8 million lari.

According to the Commission, free advertisement of National Movement’s presidential candidate Grigol Vashadze made up 9.75 million lari, one of European Georgia’s David Bakradze – 5.03 million lari, while Salome Zurabishvili, backed by ruling Georgian Dream, aired free advertisement of 2.65 million lari.




REZONANSI: “1-YEAR AMBASSADOR-LESS DIPLOMACY – WHY THE US DO NOT APPOINT AMBASSADOR IN GEORGIA”

April 3, 2019 - The US administration does not hurry to appoint ambassador in Georgia for nearly a year already, the newspaper says.

For nearly a half of a year since April 2018, duties of ambassador were executed by Elizabeth Rud, who was replaced in November by Ross Wilson.




TABULA: “SAAKASHVILI: MY PLANS ARE CONNECTED WITH GEORGIA, IT EXCLUDES THE POSITION IN UKRAINE”

April 3, 2019 - Ex-president of Georgia and ex-governor of Odessa district of Ukraine Mikheil Saakashvili expressed on air of Rustavi-2 broadcasting company a confidence in Volodymyr Zelensky’s victory at presidential elections in Ukraine and declared that he plans to visit Kiev after that.

However, “my further plans are connected with Georgia most of all”, Saakashvili pointed.




REZONANSI: “LAW ON LAND ALLOWS SO MANY EXCEPTIONS THAT NOTHING WILL REMAIN FROM IT SOON”

April 2, 2019 - Draft of organic law, prepared by Georgian Parliament’s Committee on Agrarian Issues, allows international financial institutions (World Bank, IMF, EBRD) to own agricultural land in the country, upon implementation of particular projects. Other foreign legal entities cannot own the land.




TABULA: “MOST OF ALL, GEORGIAN CITIZENS GET REFUSAL ON ENTRY TO THE EU IN FRANCE AND IN CYPRUS”

April 1, 2019 - Referring to Georgian Interior Ministry, Tabula reports that 231 Georgian citizens were not allowed to enter the EU in February.

Most of all, refusals were get in Italy (34 rejected out of 2,594 persons), France (37 out of 1,445), Poland (30 out of 3,198) and Cyprus (33 out of 830).




TABULA: “AGENCY OF ANAKLIA DEVELOPMENT: THE STATE DOES NOT LOOK FOR THE ALTERNATIVE COMPANY”

April 1, 2019 - On March 30, Rustavi-2 broadcasting company reported that state agency for deep-water port Anaklia development has signed contract with American law firm White&Case, which envisages drafting of amendments to the state contract with Anaklia Development Consortium and analysis of possible consequences of its termination.

In its turn, the agency denies information that the state is preparing for termination of the contract with Anaklia Development Consortium, though confirms signing of the contract with White&Case, Tabula reports.

macroeconomics & budget

TABULA: “KHORGUASHVILI: REASON OF RECENTLY INCREASED SMUGGLING IS ARTIFICIAL INCREASE OF CIGARETTES PRICE BY THE GOVERNMENT”

April 5, 2019 - Referring to Georgian Finance Ministry, Tabula reports that between January 1 and March 14, there were 39 criminal cases initiated on excise-less cigarettes (i.e. imported/produced with avoidance tax payment), which is 3 times more than in the same period of 2018.

“We warned the government that raise of excise on cigarettes will increase smuggling”, economist Zviad Khorguashvili says.




FORBES GEORGIA: “TOUGHENED CREDITING AND LABOR SKILLS – ADB NAMES RISKS OF GEORGIAN ECONOMY”

April 4, 2019 - Asian Development Bank (ADB) forecasts for 2019 growth of Georgia’s GDP by 5%, for 2020 – by 4.9%, the magazine reports.

According to the ADB, growth will be promoted by export, consumption and investments that will be caused by high infrastructure expenses.




TABULA: “THE STATE OFFERS IDPS TO ACQUIRE APARTMENTS THROUGH CO-FINANCING”

April 2, 2019 - The families of internally displaced persons, registered in Tbilisi before June 1, 2013, will be able to acquire residential space through co-financing, Tabula reports.

Georgian Ministry of IDPs from Occupied Territories, Labor, Healthcare and Social Protection will finance to these families at most $350 per 1 square m, while share of the families has to make at least $60.

transport & communications

REZONANSI: “POSSESSION OF ELECTRIC VEHICLE BECOMES MEANINGLESS – ITS CHARGING ALREADY COSTS MORE THAN PETROL”

April 2, 2019 - Talk on encouragement of automobile market is excessive, if charging of electric vehicles costs more than gas and petrol, the newspaper states.

As the article notes, there are several charging stations, operating countrywide, and their service was free only until end of 2018.

finances & banking

BANKEBI DA FINANSEBI: “IVANE MACHAVARIANI – NEITHER THEN, NOR NOW I WAS A SUPPORTER OF BANKING REGULATION OF SUCH SCALE”

April 5, 2019 - I confirm that neither then, nor now I was a supporter of banking regulation of such scale, Georgia’s Finance Minister Ivane Machavariani declared to journalists.

I hope that National Bank of Georgia “will be able and will find strength to reconsider regulation, if necessary”, the Minister noted.




REZONANSI: “IS NEW WAVE OF MICROFINANCIAL ORGANIZATIONS’ BANKRUPTCY BEGIN?”

April 1, 2019 - Georgian microfinancial organizations limited issuance of credits as much as possible, and they are practically unable to continue activity, the newspaper states.

According to experts, the tendency will proceed and as a result, number of microfinancial organizations will decrease to minimum, the article points.

agriculture & food

NETGAZETI.GE: “AFTER CHECK, DELIVERY OF CHEESE SUSPENDED TO KINDERGARTENS IN TBILISI”

April 3, 2019 - Referring to Georgian Agency on Kindergartens Management, Netgazeti.Ge reports that out of 13 checked Tbilisi kindergartens, in one – dairy powder was found in cheese, while vegetable fat – in sour cream, in another – vegetable fat was in cottage cheese and sour cream.

According to the Agency, as a result of this check, cheese supplies are suspended at the moment to all kindergartens of Tbilisi.

construction

BANKEBI DA FINANSEBI: “NEW SHOPPING CENTER, “CITY MALL SABURTALO”, WILL BE BUILT IN TBILISI”

April 5, 2019 - With financial support of Sakartvelos Banki (Bank of Georgia), the shopping center Saburtalo City Mall will be built on 120,000 square m in Tbilisi, the newspaper reports. The bank allocates financing of $34 million.




BANKEBI DA FINANSEBI: “INTERNATIONAL INVESTORS ACCELERATE ACTIVITY ON GEORGIAN REAL ESTATE MARKET”

April 3, 2019 - In Sheraton Grand Tbilisi Metechi Palace, the 2-day real property fair Area Expo 2019 will take place on May 4-5, the newspaper reports.

Partners of the event are International Chamber of Commerce in Georgia and Georgian National Agency of State Property.




NETGAZETI.GE: “WHAT SORT OF SANCTION ARE IMPOSED ON COMPANIES, ENGAGED IN CONSTRUCTION ON CHAVCHAVADZE AVE. 5”

April 2, 2019 - On March 31, two workers were killed by ground collapse on construction of a clinic on Chavchavadze Ave. 5 in Tbilisi.

On the companies, which are engaged in construction, various sanctions are imposed, Netgazeti.Ge reports.




FORBES GEORGIA: “REALTY TRANSACTIONS INCREASED ENORMOUSLY – THE MOST EXPENSIVE DISTRICTS OF TBILISI”

April 1, 2019 - Referring to TBC Research, the magazine reports that area, sold in 2018 in Tbilisi, increased year-on-year by 31%. The article notes that growth in 2017 made up 17%.

tourism

FORBES GEORGIA: “FOR LAST 10 YEARS, GEORGIA RECEIVED FROM TOURISM INCOME OF $17B”

April 4, 2019 - In 2009-2018, Georgia gained from foreign tourism an income of $17 billion, the magazine reports.

The article notes that after 2001, Georgia’s income from tourism grew annually, by 22% on average.