Economic Press Monitor April 30 - May 6, 2023	Days:  22 29 06 13 20

economic & politics

TABULA: “THE EU COUNCIL ALLOCATED 30M EUR AID FOR GEORGIAN DEFENSE FORCES”

May 5, 2023 - Within the framework of the European Peacekeeping Fund (EPF), the EU Council approved 2 packages of assistance to the defense forces of Moldova and Georgia.

For Georgia, 30 million EUR has been allocated, the assistance package covers a period of 36 months and is intended for non-lethal weapons, stocks and services.




TABULA: ““META” DELETED 80 FAKE ACCOUNTS CONNECTED WITH GEORGIAN GOVERNMENT’S STRATCOM”

May 4, 2023 - Meta reported that 80 accounts, 26 pages, 9 groups in Facebook and 2 accounts in Instagram, associated with the Strategic Communications Department (Stratcom) of the Georgian government have been deleted. The reason is violation of the company’s policy against coordinated inauthentic behavior.




REZONANSI: “DE-FACTO SANCTIONS ARE ALREADY IMPOSED ON BIDZINA IVANISHVILI – WHY DID THE “DREAM” START TALKING ABOUT SANCTIONING OF IVANISHVILI”

May 3, 2023 - On May 2, statements about the sanctioning of Bidzina Ivanishvili (billionaire founder of the ruling Georgian Dream) were simultaneously made by the deputy speaker of the Georgian Parliament, the chairman of the Georgian Dream parliamentary faction and Tbilisi Mayor. According to them, freezing of Ivanishvili’s $2 billion in a Swiss bank is an informal sanction.




BANKEBI DA FINANSEBI: “GEORGIA AND ISRAEL WILL START FREE TRADE NEGOTIATIONS SOON”

May 3, 2023 - During the visit of Georgia’s Foreign Minister Ilia Darchiashvili to Israel, prospects of economic cooperation were considered along with other issues.

Alexander Khvtisiashvili, Georgia’s Deputy Foreign Minister pointed at bilateral declaration, which was signed during the meeting with the Israeli Economy Minister.




TABULA: “IN THE AUGUST WAR CASE, STRASBOURG CHARGED RUSSIA TO PAY UP TO 130M EUR TO GEORGIA”

May 1, 2023 - The Strasbourg Court of Human Rights charged Russia to pay up to 129.83 million EUR to Georgia over the next 3 months. The case “Georgia vs Russia” concerns the war in August 2008.

macroeconomics & budget

REZONANSI: “GEORGIA’S ANTI-RECORD: MORE GEORGIANS ARE EMPLOYED OUTSIDE THE COUNTRY THAN INSIDE THE COUNTRY”

May 5, 2023 - Statistician Soso Archvadze indicates that number of people, employed by contract in Georgia, makes up about 860,000, while approximate number of Georgians, employed outside the country – 950,000 people.

“Georgia is, if not the only one, then one of those rarest states that have more people employed outside the country than inside the country”, Archvadze says.




BANKEBI DA FINANSEBI: “AT THE NEXT COMMITTEE (MEETING), WE WILL REALLY HAVE AN ACTIVE CONSIDERATION IN THE DIRECTION OF REFINANCING RATE’S REDUCTION – LEZHAVA”

May 3, 2023 - Papuna Lezhava, vice-president of National Bank of Georgia (NBG), reminds that at the beginning of the year they said that from the second half of the year it would be possible to begin easing monetary policy.

At the previous meeting of the NBG Monetary Policy Committee, we did not even consider this issue, since the risks were still very high, Lezhava says and announces that the issue of reducing the refinancing rate will be considered at the meeting on May 10.




BATUMELEBI: “CONSTRUCTION OF CHESS PALACE IS PLANNED IN BATUMI”

May 1, 2023 - The Ajara government plans to build a Chess Palace nearby to the newly built sports complex in Batumi

In order to determine approximate cost of the project, the Ajara Project Management Company (former LLC Stadium, a state-owned company) is studying the market.

It should be noted that in 2017, in order to hold the World Chess Olympiad, Ajara Finance and Economy Ministry instructed LLC Stadium to hold procurement of construction works, but the company failed to fulfill the order on time.

companies

FORBES GEORGIA: “WITH ASSISTANCE OF “GALT&TAGGART”, “TEGETA HOLDING” ISSUED SECURITIES EQUIVALENT TO $25M”

May 5, 2023 - Tegeta Holding (vehicle maintenance) issued 2-year bonds worth $20 million and 5 million EUR. The partner in the transaction is Galt&Taggart.




FORBES GEORGIA: “WITH SUPPORT OF “TBC”, “EXPOGEORGIA” EXHIBITION CENTER HOSTED INTERNATIONAL REAL ESTATE WEEK”

May 2, 2023 - With the support of TBC, Tbilisi Exhibition Center ExpoGeorgia and Georgian National Real Estate Association held a Real Estate Week. The Week included exhibitions of real estate and construction, as well as international conference.

transport & communications

REZONANSI: “WILL A NEW AIRPORT BE BUILT NEAR TBILISI?”

May 5, 2023 - Georgia’s Finance Minister Lasha Khutsishvili declared that the current Tbilisi airport does not have the possibility of expanding to the extent that meets the country’s needs. Therefore, construction of a new airport with a larger capacity is on the agenda, he pointed.




BANKEBI DA FINANSEBI: “BAKU-TBILISI-KARS RAILWAY SIGNIFICANTLY CUT TIME OF CARGO TRANSPORTATION BETWEEN EUROPE AND ASIA”

May 4, 2023 - Referring to Turkish news agency Anadolu, the newspaper reports that commissioning more than 2.4 million t of cargo has been transported via Baku-Tbilisi-Kars (BTK) railway since its put in operation. In particular, 691,000 t of cargo was transported in 2022.

international cooperation

BANKEBI DA FINANSEBI: “PROJECT OF BLACK SEA UNDERWATER CABLE IS IMPORTANT NOT ONLY FOR GEORGIA, BUT ALSO FOR THE SOUTH CAUCASUS – JAMES APPATHURAI”

May 4, 2023 - Romeo Mikautadze, Georgia’s Deputy Minister of Economy and Sustainable Development, and James Appathurai, NATO Deputy Assistant Secretary General for Political Affairs and Security Policy discussed at the meeting in Tbilisi the reforms in Georgian energy sector.

Appathurai declared that Georgia has a large energy potential, and its resources allow growth of installed capacity, which is important for the economic development of any country.




TABULA: “GEORGIA WILL TRADE IN GREENHOUSE GASES WITH QATAR”

May 2, 2023 - Nino Tandilashvili, Georgia’s Deputy Minister of Environmental Protection and Agriculture, reported that Georgia and Qatar have signed a memorandum of cooperation, which envisages possibility of trading in greenhouse gases. We started working on this memorandum 2 years ago, she noted.

finances & banking

BANKEBI DA FINANSEBI: “NBG FINED “RICO” FOR VIOLATIONS OF VARIOUS ANTI-MONEY-LAUNDERING AND FINANCIAL CONTROL REQUIREMENTS”

May 4, 2023 - National Bank of Georgia (NBG) fined the microfinance organization Rico Express with 70,000 lari.

As NBG said, the fine was imposed because of functioning with essential flaws of the software, installed for assistance to suppression of money laundering and terrorist financing, and the microfinance organization’s failure to provide information/documentation to the verification group before expiration of the verification period.




REZONANSI: “MANDATORY PACKAGE OF CAR OWNERS’ LIABILITY INSURANCE AGAINST A THIRD PARTY WILL COST 200 LARI”

May 3, 2023 - David Onoprishvili, head of Georgian State Service for Insurance Supervision, says that after introduction of mandatory car owners’ liability insurance against a third party, the insurance market will grow by 30%. Enactment of this type of insurance is planned in 2024.




BANKEBI DA FINANSEBI: ““IF “TOCHKA” IS SANCTIONED, THEN NO GEORGIAN BANK WILL DEAL WITH IT””

May 1, 2023 - Russian media reported that clients of the Russian digital bank Tochka will be able, along with the US dollar, euro and Russian ruble, to make transfers to Georgian banks in lari.

Archil Mestvirishvili, acting president of National Bank of Georgia (NBG), said that NBG will study whether this Russian bank or its owners are sanctioned.

agriculture & food

REZONANSI: “FOOD PRICES ARE STILL NOT DECREASING, SO THE GOVERNMENT IS IN A HURRY TO PASS A LAW”

May 2, 2023 - In 2 months after the urge of Georgian Prime Minister to reduce prices, food on the shelves is getting cheaper only as part of the sales promoting campaign, the newspaper says. In order to regulate food prices, Georgian Ministry of Economy and Sustainable Development, National Competition Agency and Association of Distributors and Retailers are working on a legislative framework.




NETGAZETI.GE: “WHY HAS ONION RISEN IN PRICE”

May 1, 2023 - In Tbilisi shops, price of 1 kg of onions ranges within 5-8 lari now. Vakhtang Bezhitashvili, president of Georgian Fruits and Vegetables’ Exporters Association, said that onion has increased in price by about 300%.

construction

REZONANSI: “CONSTRUCTION MATERIALS HAVE RISEN IN PRICE BY 50 PERCENT, WORK – BY 100 PERCENT, WHILE QUALITY REMAINED THE SAME”

May 2, 2023 - In Georgia, works on apartment renovation have risen in price by 40-50%. Now, renewal of 1 square m costs $250, while high-quality works cost $450-500, the newspaper reports.