Economic Press Monitor September 1 - 7, 2019	Days:  10 17 07 14 21

economic & politics

TABULA: “TSKITISHVILI ON ANAKLIA PORT: WE TRY TO ASSIST TO “ANAKLIA CONSORTIUM” AS MUCH AS POSSIBLE”

September 6, 2019 - Maya Tskitishvili, nominated on the post of the Minister of Regional Development and Infrastructure, declares that the project of deep-water port construction in Anaklia faces problems. “We try to assist as much as possible to Anaklia Development Consortium in overcoming these problems”, she assures.




FORBES GEORGIA: “FOR OBTAINING STATUS OF STARTUP, THERE WILL BE OBLIGATORY TO MEET SPECIAL CONDITIONS”

September 4, 2019 - Georgian government plans to legally define a startup, the magazine reports.

According to the governmental program, rule of obtaining status of a startup will be established.




NETGAZETI.GE: “ON POSITION OF THE US AMBASSADOR IN GEORGIA, TRUMP NOMINATED KELLY DEGNAN”

September 4, 2019 - On the post of ambassador in Georgia, the US President Donald Trump nominated Kelly Degnan, Netgazeti.Ge reports.

The article reminds that the US had no ambassador in Georgia since April 2018 (after expiration of office terms of Ian Kelly).




TABULA: “LETTER OF PROSECUTOR’S OFFICE TO DIPLOMATIC CORPS IN CONNECTION WITH CASE OF “TBC”, WHICH EXISTENCE IS DENIED”

September 3, 2019 - On September 2, founders of Georgia’s largest TBC Bank Mamuka Khazaradze and Badri Japaridze released statement, saying that Prosecutor’s Office of the country invited representatives of diplomatic corps to a special meeting on September 6 in order to acquaint them with details of the case (to remind, Georgia’s Prosecutor’s Office accuses Khazaradze and Japaridze of illicit income, gained in 2008).

Later, the Prosecutor’s Office released the statement, in which it said that no meeting was planned on September 6.

macroeconomics & budget

NETGAZETI.GE: “NOT A PROBLEM AT ALL – TURNAVA ON FINANCING OF FLIGHTS OF “AIRZENA” TO RUSSIA BY €600,000”

September 6, 2019 - On the basis of resolution of Georgian government of July 24, the state will finance flights from Georgia to Russia and back, being conducted via Yerevan, with 600,000 EUR, Netgazeti.Ge reports.

Commenting on this issue, Economy and Sustainable Development Minister nominee Natia Turnava originally declared that it is wrong to speak that the funds allegedly are allocated to AirZena (Georgian Airways).




TABULA: “GVENETADZE ON NEW 50-MILLION OFFICE OF NATIONAL BANK: OUR FUNCTIONS INCREASE”

September 5, 2019 - President of National Bank of Georgia (NBG) Koba Gvenetadze points that for the last 3 years, “a lot of additional questions and functions were added” to NBG. Respectively, NBG needs more resources and more space, he declares.




TABULA: “SINCE 2016, COMPANIES OF MP FROM “DREAM” AND HIS FAMILY RECEIVED 92M FROM THE BUDGET”

September 3, 2019 - Referring to TI Georgia, Georgian branch of Transparency International, the article reports that companies, owned by majority MP from Gori (represents ruling Georgian Dream) Ioseb Makrakhidze and his family members, received from the budget 91.8 million lari.

The companies, in which Makrakhidze, his children and brother are stakeholders, won 69 tenders, including 41 ones – in absence of rivals.




TABULA: “NATIONAL BANK: THERE IS NO CONNECTION BETWEEN GROWTH OF MONEY SUPPLY AND CHANGE OF EXCHANGE RATE”

September 2, 2019 - National Bank of Georgia (NBG) says that money supply in the country is automatically held according to increase of demand.

“As demand for money respectively grows along with growth of economy, growth of monetary aggregates reflects only increase of demand for money, but not the excessive supply of money to economy”, NBG points.




FORBES GEORGIA: “INCREASED BUDGET DOES NOT SERVE RAPID ECONOMIC DEVELOPMENT”

September 2, 2019 - The article, published by the magazine, indicates that in Georgia, ratio of taxes to GDP exceeds 25%, while budgetary expenditures exceed 33% of GDP. For developing country, such high tax burden and state participation in economy are factors, essentially hampering rapid development, the article points.

companies

NETGAZETI.GE: “KEZERASHVILI BECAME HOLDER OF CONTROLLING STAKE IN “TV FORMULA””

September 5, 2019 - Former defense minister David Kezerashvili (who was put on international wanted list by the government of Georgian Dream) became owner of a stake of 51% in Formula broadcasting company, Netgazeti.Ge reports. Remained 49% is distributed among founders of the TV company.




FORBES GEORGIA: “MISSION LIABLE TO EXECUTION”

September 3, 2019 - Among challenges, which banks are facing globally, director general of Sakartvelos Banki (Bank of Georgia) Archil Gachechiladze in his interview to the magazine names customer-friendly service and relevance of services.

Number of Sakartvelos Banki’s clients exceeds 2 million and in direction of services’ relevance, the bank cooperates with Medallia, the consumer experience managing company, the magazine reports.

finances & banking

TABULA: “MACHAVARIANI ON MORTGAGE LOANS: SOFTENING OF REGULATIONS HAPPENED IN THE SPHERE”

September 6, 2019 - Ivane Machavariani, nominated on the post of the Finance Minister, declares that National Bank of Georgia has softened regulations on mortgage loans.

Machavariani explains that regulations “are quite softened” in part of borrowers’ income confirmation.




FORBES GEORGIA: “CUSTOMERS OF “TBC BANK” CAN ALREADY USE “APPLE PAY””

September 5, 2019 - TBC Bank presented to consumers of Apple Pay, reports the magazine. As it is noted, in the first day of involvement of Apple Pay in application 17,000 cards of bank and several thousands of payments were registered.




TABULA: “GVENETADZE: BANKING REGULATIONS NOT DAMAGED CONSTRUCTION SECTOR, BUT ON THE CONTRARY, REVITALIZED”

September 5, 2019 - “Construction sector was one of the most important contributors in the recent growth” of economy, president of National Bank of Georgia (NBG) Koba Gvenetadze says.

It “does not coordinate in any way with the consideration that these regulation allegedly caused damage to this sector”, Gvenetadze declares, while commenting banking regulations (restriction of crediting), which became effective this year.




TABULA: ““TBC”: COST OF ONE DOLLAR SURPASSED 3 LARI”

September 4, 2019 - In commercial banks, devaluation of national currency continues, Tabula says.

In particular, the article reports that exchange rate in TBC Bank makes up now 3.0150 GEL/USD.




BANKEBI DA FINANSEBI: “86.7% OF INTEREST INCOME OF MICROFINANCIAL ORGANIZATIONS ACCOUNTS FOR CREDITS, ISSUED TO PRIVATE INDIVIDUALS”

September 2, 2019 - Referring to National Bank of Georgia, the newspaper reports that Georgian microfinancial organizations’ interest income for first two quarters of this year totals to 158.7 million lari. Out of this sum, credits issued to private individuals account for 86.7%.

agriculture & food

NETGAZETI.GE: “LEVAN DAVITASHVILI: WE SAVED THE HAZELNUT HARVEST AND EXPECT 40,000-45,000 T THIS YEAR”

September 6, 2019 - Environmental Protection and Agriculture Minister nominee Levan Davitashvili declares that as a result of fight against the pest, marmorated stink bug, “we managed to save a hazelnut harvest” this year.

In the current year, we expect hazelnut harvest of about 40,000-45,000 t, Davitashvili reports.




FORBES GEORGIA: “HOW MUCH FOOD RAISED IN PRICE FOR THE LAST 7 YEARS – DETAILED LIST”

September 4, 2019 - Referring to data of Sakstat, the magazine reports that during the last 7 years, food and soft drinks in Georgia have rose in price by 33%.

The article specifies that eggplants rose in price most of all – by 95%.