Economic Press Monitor June 30 - July 6, 2019	Days:  22 29 06 13 20

economic & politics

FORBES GEORGIA: “EU: RUSSIA’S DECISION ON FLIGHTS’ PROHIBITION IS UNJUSTIFIED AND DISPROPORTIONATE”

July 5, 2019 - “We consider that Russia’s decision in connection with prohibition of flights is unjustified and disproportionate”, press secretary of the EU foreign affairs service points in the statement. The matter concerns Russian prohibition of air communication with Georgia since July 8.




NETGAZETI.GE: “PRESIDENT ZURABISHVILI DEPRIVED KAZAKHSTAN BUSINESSMAN OF ORDER OF HONOR”

July 5, 2019 - Georgia’s President Salome Zurabishvili deprived Kazakh businessman Mukhtar Ablyazov of Order of Honor, Netgazeti.Ge reports. The decision is dated as of May.




BANKEBI DA FINANSEBI: “IN GLOBAL PASSPORT POWER RANK, GEORGIA IS ON THE 52^ND PLACE”

July 4, 2019 - Referring to Henley&Partners, the newspaper reports that in Global Passport Power Rank (defines number of destinations, where the holder can travel visa-free), Georgia occupies the 52^nd place. The similar position is occupied by Albania.




REZONANSI: “TRUST BETWEEN BUSINESS AND THE AUTHORITIES FINALLY COLLAPSED”

July 3, 2019 - Business sharply estimates cancellation of a 30-day tax benefit (replaced with 5 days for payment of import tax) for companies, included in so-called “gold list”, the newspaper says. As the article notes, importers state that business will face serious deficiency of cash, because of which they will be forced to take credits.




FORBES GEORGIA: “WORLD BANK: A LOT OF THINGS STILL SHOULD BE MADE FOR ECONOMIC DEVELOPMENT IN GEORGIA”

July 3, 2019 - Sebastian Molineus, recently appointed as regional director of the World Bank in the South Caucasus, stated that in Georgia, “a lot of things still should be made for economic development, for development of human capital, education and healthcare, as well as concerning issue of environmental protection”. “This is common strategic vision, which we developed within partnership together with the authorities”, he said.




FORBES GEORGIA: “AMCHAM: GEORGIA REMAINS THE COUNTRY, SAFE FOR TOURISTS AND BUSINESSMEN”

July 2, 2019 - “For years, Tbilisi and other regions of Georgia were and remain today the safe tourist direction”, American Chamber of Commerce in Georgia (AmCham) indicates in the released statement.

AmCham notes that tourist infrastructure of the country considerably improved in recent years.




KVIRIS PALITRA: “DOUBLE HIT TO LARI”

July 1, 2019 - Within a week, Georgian national currency, lari, has depreciated by 10 tetri, the newspaper reports. The article brings estimation of experts, “lari got double hit recently” (the matter concerns Russian sanctions and protest actions in Tbilisi).




TABULA: “THE GOVERNMENT PLANS TO ENACT ANTI-DUMPING LAW SINCE 2020”

July 1, 2019 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava declared that anti-dumping legislation will be enacted since January 1, 2020. “When we protect local production, we protect local employment by it”, she pointed.

macroeconomics & budget

FORBES GEORGIA: “BUSINESS ASSOCIATIONS: FOR HUNDREDS OF COMPANIES, IMPORT BECAME COMPLICATED”

July 5, 2019 - The magazine reports that 10 business associations, operating in Georgia, have fixed their negative position “in connection with unexpected and drastic reduction of payment terms”.

The matter concerns cancellation of tax benefit for companies from so-called “gold list” (reduction of term of payment of import tax from 30 to 5 days), which fully entered in force on July 2.




BANKEBI DA FINANSEBI: “FACTOR OF RUSSIA IN GEORGIAN ECONOMY”

July 5, 2019 - Authors of the article, researchers from Analysis and Forecasting Center at Tbilisi State University (Vakhtang Charaia, Otar Anguridze, Shota Gulbani), assume that substitution of at most 50% of Georgian export to Russia is possible in short-term period.

Respectively, in case of zeroing and substitution of export to Russia, losses for June-December will make up 0.7 percentage points of GDP growth, they specify in the article.




TABULA: “UNDER THE BILL, TWISTED TOBACCO WILL BE TAXED, WHILE EXCISE ON FILTER-LESS CIGARETTES WILL BE INCREASED”

July 4, 2019 - Tabula reports that draft amendments to Georgian Tax Code, being submitted to the Parliament, impose excise on cut (twisted) tobacco. In particular, 1 kg of twisted tobacco will be taxed with 60 lari.




FORBES GEORGIA: “EBRD: INFRASTRUCTURE IS ONE OF DRIVING FORCES OF ECONOMIC GROWTH”

July 2, 2019 - In an interview to the magazine, managing director of Sustainable Infrastructure Group at EBRD Nandita Parshad indicates that “Infrastructure is one of driving forces of economic growth and a way of improvement of the standard of living of population”. By the end of the year, we will invest already $1 billion in infrastructure projects in Georgia, she says.

companies

BANKEBI DA FINANSEBI: ““TBC” ACQUIRED CONTROLLING STAKE IN “TKT.GE””

July 2, 2019 - TBC raised its stake in Tkt.Ge, online platform for sale of tickets, from 26% to 55%, the newspaper reports. Initial 26% were acquired a year ago (cost of transactions is not specified).

transport & communications

NETGAZETI.GE: “SUM, RECEIVED FROM MORTGAGING OF SHARES, JAPARIDZE AND KHAZARADZE WILL SPENT FOR ANAKLIA PORT”

July 2, 2019 - Badri Japaridze and Mamuka Khazaradze, founders of Georgia’s largest TBC Bank, will spent $10 million, gained from mortgaging of shares of the bank, for construction of Anaklia port, Netgazeti.Ge reports. As the article indicates, mortgaging of shares continues, but their alienation is not planned.




TABULA: “ECONOMY MINISTER: WITH HIGH PROBABILITY, “RYANAIR” WILL ENTER GEORGIA SINCE 2020”

July 1, 2019 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava declared that with high probability, Irish low-coster Ryanair will launch flights to Georgia in 2020. For that end, we have to hold intensive negotiations until end of 2019, she noted.

finances & banking

FORBES GEORGIA: “VIOLATIONS, WHICH WERE REVEALED DURING CHECKING OF AUDITOR FIRMS”

July 4, 2019 - In 2018, Georgian Service for Accounting, Reporting and Audit Supervision checked auditor firms for the first time. Overall, 15 firms were checked, of which full monitoring was conducted in 13 cases, while in 2 cases – thematic check, the magazine reports.




REZONANSI: “THE GOVERNMENT GOES THE WAY OF REGULATIONS’ SIMPLIFICATION”

July 3, 2019 - In case of issuing of mortgage loan in lari, with condition of borrower’s co-participation of at least 20%, Georgian commercial banks will be allowed to estimate solvency of the borrower by their internal modules, the newspaper reports.

According to director general of TBC Bank Vakhtang Butskhrikidze, commercial banks “are actively involved in communication process” with National Bank of Georgia (NBG).

agriculture & food

TABULA: “NATIONAL FOOD AGENCY: CONTENT OF NITRATES IN VINE CROPS AND VEGETABLES DOES NOT EXCEED NORM”

July 4, 2019 - Georgian National Food Agency declared that content of nitrates in vine crops and vegetables does not exceed norm.

The Agency reported that about 80 samples, including those of watermelon and melon, were collected countrywide and checked in accredited laboratory.

construction

FORBES GEORGIA: “WHAT BANKING REGULATIONS HAVE CHANGED ON MORTGAGE MARKET”

July 3, 2019 - In the 1^st quarter, growth of Tbilisi real estate market stopped, the magazine says, referring to TBC Capital. The article indicates that in particular, year-on-year growth in January made up 6%, February – 1%, March – 6%, while average growth rate a year ago was 20-24%.




FORBES GEORGIA: “GEORGIAN CONSTRUCTION MARKET REVIEW”

July 1, 2019 - Referring to Sakstat, the magazine reports that added value, created in Georgian construction sector during 2018, made up 3.72 billion lari.

The article notes that, decrease of 3% was recorded last year in the construction sector that the government explains with completion of large infrastructure project (Shah-Denise gas pipeline).