Economic Press Monitor December 1 - 7, 2019	Days:  23 30 07 14 21

economic & politics

BANKEBI DA FINANSEBI: “THE GOVERNMENT “HIT” LOCALLY-PRODUCED TOBACCO TOO”

December 6, 2019 - Since November 21, sale of any unpacked tobacco products is forbidden in Georgia, the newspaper reports. Realization of cut tobacco is permitted only in packs of 50 or 100 g, which have to have excise stamp applied.




BANKEBI DA FINANSEBI: “PROCESS OF LAND’S INCLUSION IN BUSINESS ACTIVITY LAGS – 80% OF LAND IN GEORGIA BELONG TO THE STATE”

December 6, 2019 - In Georgia, process of land’s inclusion in economic activity lags, the newspaper says. At that, majority of lands is registered on the state balance, the article indicates.




REZONANSI: “GEORGIA’S NEW FORMAT FOR RAPPROCHEMENT WITH EUROPE – “EUROPEAN UNION + 3””

December 6, 2019 - In the Slovakian capital Bratislava, 3 countries associated with the EU (Georgia, Ukraine, Moldova) signed the joint statement on European integration, the newspaper reports.

The article notes that this is the first political statement on integration in the EU, which is signed by Foreign Ministers of these three countries.




BANKEBI DA FINANSEBI: “NEW SCHEME OF EMPLOYMENT – “EUROPEAN DREAM” BECOMES A REALITY”

December 4, 2019 - In recent years, jobs remain one of the major problems for the Georgian population, the newspaper says. The article reports that unemployment rate in Georgia in the 3^rd quarter of this year made up 11.1%, reducing year-on-year by 1.1 percentage points, but at the same time, number of contract employees decreased by 0.6 percentage points.




FORBES GEORGIA: “DROP IN READING COMPREHENSION, SCIENCE AND MATHEMATICS – GEORGIA IN PISA 2018”

December 4, 2019 - Referring to OECD’s Program for International Student Assessment report for 2018, the magazine reports that in comparison with report of 2015, results of Georgian students sharply worsened in all 3 main directions (reading comprehension, mathematics, science).

In particular, according to report 2018, Georgia is on the 70^th place among 77 countries and average scoring of the country makes up 380, being worsened in comparison with report of 2015 by 21 points.




TABULA: “ZOIDZE: I DO NOT SEE MY PLACE IN TODAY’S PARTY POLICY AND THE PARLIAMENT ANY MORE”

December 3, 2019 - Akaki Zoidze, chairman of Georgian Parliament’s Committee on Healthcare Issues, leaves the Parliament and quits politics, Tabula reports.

As Zoidze notes, he feels responsibility, as “we could not convince a part of colleagues that, despite certain risks, transition to proportional electoral system already in 2020 would provide passage of politics to constructive course and maintenance of stability of the country”.




TABULA: “IVANISHVILI: I WILL STEP ASIDE WHEN I SEE THAT HEALTHY FORCES FIGHT FOR THE POWER”

December 2, 2019 - Bidzina Ivanishvili, billionaire leader of ruling Georgian Dream, declared that “We need healthy forces, but not destructive forces”. “I then will step aside, when I see that healthy forces fight for the power.




REZONANSI: “FORBID PARTICIPATION IN GAMBLING FOR PERSONS AGED 25 YEARS AND BELOW! – 10,000 SIGNEES ADDRESS THE GOVERNMENT”

December 2, 2019 - Petition, initiated on the electronic portal of Georgian government on November 4 by Anna Dolidze (non-judge member of the High Council of Justice since 2018), is accepted for consideration, the newspaper reports.

The article specifies that the petition, which aims introduction of regulation on gambling, has collected within the established time frame of 30 days the necessary number of signees – over 10,000.




KVIRIS PALITRA: “OFFSHORE “ROOF” FOR ELITE CORRUPTION”

December 2, 2019 - TI Georgia, Georgian branch of Transparency International, published the report, according to which about 3,000 offshore-registered companies operate in Georgia. Among these companies, up to 1,000 ones are registered in Great Britain, 280 – in Cyprus, to 250 – on the Virgin Islands, 74 – in Panama, 63 – in the Seychelles, etc.




NETGAZETI.GE: “ZURAB ADEISHVILI SENTENCED TO IMPRISONMENT OF 5 YEARS AND 3 MONTHS ON THE CASE OF “CARTU” BANK”

December 2, 2019 - Ex-Minister of Justice (in the government of National Movement) Zurab Adeishvili, who was accused of intentional bankruptcy of Cartu bank (belongs to family of Bidzina Ivanishvili, billionaire leader of ruling Georgian Dream), was sentenced to imprisonment for a period of 5 years and 3 months, Netgazeti.Ge reports.

As the article notes, the court made the decision after 7 years of investigation, launched in December 2012, i.e. after Georgian Dream came to power.

macroeconomics & budget

TABULA: “THE GOVERNMENT’S TRAVEL EXPENSES INCREASED THIS YEAR BY 282% AND MADE UP 62M LARI”

December 4, 2019 - Referring to Georgian State Audit Service (the budget monitor), Tabula reports that travel expenses of Georgian government for 9 months of this year have increased by 28%.

If in January-September of 2018, travel expenses of the government amounted to 16.3 million lari, then for the same period of the current year the volume made up 62.3 million lari.

companies

TABULA: “VICE-MAYOR: I WILL NOT AGREE WITH “TBILISI MINIBUS” CONCERNING RAISE OF TARIFF, WE WILL OFFER OTHER VERSIONS”

December 6, 2019 - Tbilisi Vice-Mayor Irakli Khmaladze declares that at ongoing negotiations with Tbilisi Minibus (private company, which serves intracity passenger transportation by minibuses), “the only condition, which I will not agree with, is raise of tariff”. “Renewal of vehicle fleet is possible to conduct step by step in such a way, which will not require touching of tariff”, he indicates.




REZONANSI: ““GPIH” QUITS HOSPITAL BUSINESS”

December 5, 2019 - On November 22, Georgian Hospital Group acquired Geo Hospitals chain of clinics from GPIH insurance company.

GPIH declares that this step was caused by decision of their owner Vienna Insurance Group.




BANKEBI DA FINANSEBI: “WAS PROFIT OF INSURANCE COMPANIES DECREASED OR THEY DID “DECREASE” IT”

December 3, 2019 - By data in 9 months of this year, net profit of Georgian insurance sector totaled to 33.7 million lari, decreasing by 0.9% year-on-year, while premium, attracted in the sector, has increased, the newspaper reports.

The article considers reasons, which could cause reduction of net profit against the background of growth of attracted premium.

transport & communications

REZONANSI: “THE COMPANY WILL RAISE FARE IN YELLOW “MINIBUSES” BY 30 TETRI?”

December 5, 2019 - Big opposition begins between Tbilisi City Hall and company Tbilisi Minibus, the newspaper says. The City Hall considers that the minibuses of the company should be urgently replaced.




REZONANSI: “SITUATION COULD BE CHANGED, NEW PROJECT COULD BE CREATED AND TENDER ANNOUNCED AFRESH – GIORKHELIDZE ABOUT ANAKLIA PORT”

December 4, 2019 - Georgia’s Minister of Regional Development and Infrastructure Maya Tskitishvili does not exclude that the state will terminate the agreement with Anaklia Development Consortium (which implements the project of deep-water port construction in Anaklia on the Black Sea shore).

On December 31, the term expires, which is envisaged by the agreement and which was already several times extended by the government, and the government will apply to corresponding actions then, the Minister points.

ecology & health

TABULA: “AFTER SHARP CRITICISM OF HEALTHCARE REFORM, THE GOVERNMENT CREATES WORKING GROUP”

December 5, 2019 - On December 4, Georgia’s Prime Minister Giorgi Gakharia met behind closed doors with heads of clinics of the country.

After the meeting, which held in the government administration, it became known that working group will be created after December 5, which will study shortcomings of the government resolution #520, Tabula reports.




REZONANSI: “SERGO CHIKHLADZE: “HEALTHCARE SYSTEM WENT BANKRUPT””

December 3, 2019 - Healthcare expert Sergo Chikhladze considers that “incompetence and negligence, shown by the Healthcare Ministry for years, brought the system to total breakup”.

“Except that the Ministry already exhausted budgetary funds, indebtedness toward medical institutions for 6-7 months exceeds 300-400 million lari”, Chikhladze specifies.

finances & banking

NETGAZETI.GE: “CLIENTS OF “SAKARTVELOS BANKI” WILL PAY IN THE SUBWAY BY MEANS OF FACE IDENTIFICATION”

December 3, 2019 - Holders of cards (Visa, MasterCard or American Express), issued by Sakartvelos Banki (Bank of Georgia), will be able to pay fare at Avlabar station of Tbilisi subway by means of face identification, Netgazeti.Ge reports. For that end, it is necessary to take “selfie” in a mobile banking application and to link photo to the desired card.

tourism

REZONANSI: “NUMBER OF TOURISTS GROWS – THE GOVERNMENT GETS PANICKY SPECIALLY?”

December 5, 2019 - Despite forecasts of Georgian government, National Bank of Georgia and National Tourism Administration, number of tourists did not decrease in the country, the newspaper says.

In particular, cumulative growth for 11 months made up 6.3%.