Economic Press Monitor October 2 - 8, 2022	Days:  24 01 08 15 22

economic & politics

BANKEBI DA FINANSEBI: ““RISKS ASSOCIATED WITH PENSION AGENCY DESERVE MAXIMUM CONTROL FROM THE STATE””

October 5, 2022 - “The risks that are naturally associated with the work of the Pension Agency represent significant social and economic risks”, declared Irakli Kovzanadze, chairman of Georgian Parliament’s Fiscal Committee.

“These risks are surely deserve maximum attention and control from the state”, Kovzanadze said at the Committee meeting, which discussed the report of the Pension Agency for 2021.




REZONANSI: “TBILISI RESIDENTS ALREADY VERY RARELY RENT APARTMENTS TO RUSSIANS”

October 5, 2022 - Referring to TBC Capital, the newspaper reports that in August, rent cost of Tbilisi housing increased by 79% compared with the same period of last year. Some real estate agencies indicate growth of demand for renting apartments in the capital’s suburbs in recent period.




REZONANSI: “TO WHOM THE LAW ON DE-OLIGARCHIZATION WILL APPLY AND WHY APPEARED THE OPPOSITION IN A LOSING POSITION”

October 4, 2022 - The ruling Georgian Dream has drafted a law on de-oligarchization, while the opposition, which was working on an alternative bill, failed to complete it on time due to disagreements, the newspaper reports.

The opposition considers that the bill of the ruling party is repressive, since the right to determine who is an oligarch is granted to the Georgian Parliament, where the Georgian Dream has the majority.




NETGAZETI.GE: “FAMILY MEMBERS OF SAKREBULO DEPUTY CHAIRMAN ARE ON THE LIST OF SOCIALLY UNPROTECTED”

October 4, 2022 - Tornike Avalishvili, chairman of opposition United National Movement (UNM) faction in Sakrebulo (city council) of Kharagauli (Imereti region), accused public servants in Kharagauli of receiving social assistance. That happens when extremely needy citizens are deprived of this assistance, if they have a small income, he said.




REZONANSI: “ESCAPED RUSSIANS WILL START SOON LOOKING FOR JOBS IN GEORGIA AND HARASSING LOCAL WORKFORCE”

October 3, 2022 - First flow of Russians had headed to Georgia after the outbreak of the Russia-Ukraine war, while the second flow has started to arrive in Georgia to avoid military mobilization in Russia, the newspaper indicates.

Economist Zviad Khorguashvili points that if Russians stay in Georgia for a long time, they will search for jobs here.

macroeconomics & budget

REZONANSI: “UNTIL END OF THE YEAR, LARI WILL REMAIN AT THE SAME LEVEL AS TODAY”

October 6, 2022 - Otar Nadaraia, chief economist at TBC Capital, expects that lari exchange rate against the US dollar will remain this year around 2.8 GEL/USD.

In Georgia, “there is a substantial inflow of migrants, but expectations of low inflation and a solid dollar, on the contrary, are an argument against a solid exchange rate, so in total, we have not changed expectations”, Nadaraia explains.




TABULA: “AZARASHVILI: IN DIRECTION OF COVID MANAGEMENT IN 2023, BUDGET IS REDUCED BY 400M”

October 4, 2022 - Zurab Azarashvili, Georgia’s Minister of IDPs from Occupied Territories, Labor, Healthcare and Social Protection, declared that about 100 million lari will be allocated for management of COVID-19 in 2023. Compared to 2022, when we allocated over 0.5 billion lari, the volume has reduced by 400 million lari, he pointed.

conflict and court

NETGAZETI.GE: ““ENKA” APPEALED TO ARBITRATION – DAVITASHVILI”

October 7, 2022 - Levan Davitashvili, Georgia’s Minister of Economy and Sustainable Development, reported that the Turkish company Enka, which planned to build NamakhvanHES hydroelectric power plant (HPP) in the Rioni River gorge, appealed to arbitration.

However, negotiations with the company continue, the Minister indicated.

companies

BATUMELEBI: “GOVERNMENT SOLD 19 HA ON BOBOKVATI COAST, AND ALIENATED THE BEACH FOR 45 YEARS”

October 7, 2022 - In Ajara, on the coast of Bobokvati, LLC Black Sea Paradise purchased a land plot of 19 ha for 26.7 million lari, with the condition of making investments of 40 million lari. The company also received in 45-year lease a beach located along the site, the annual fee for the use of which makes up 215,031 lari.




BANKEBI DA FINANSEBI: “WITH INVESTMENTS OF “BASISBANK”, “LILEO INN” HOTEL WAS OPENED IN MESTIA”

October 3, 2022 - Within the framework of the state program on hotel industry development “Host in Georgia”, the 22-room hotel Lileo Inn was opened in Mestia (highland region Svaneti).

Total cost of the project makes up 1.2 million lari, where investments of Basisbank exceeded 1 million lari, the newspaper reports.




FORBES GEORGIA: ““PSP” IS ONE OF THE LARGEST EMPLOYERS”

October 3, 2022 - This year, Georgian pharmaceutical company PSP has opened 11 new pharmacies, including in settlements where such services were previously unavailable, the magazine reports.

The article notes that in parallel with expansion of the chain, the company’s demand for staff is growing, which is a challenge for PSP, as for any other pharmaceutical company.

transport & communications

BANKEBI DA FINANSEBI: “LEVAN DAVITASHVILI ON ANAKLIA PORT – WE WILL GET A PORT THAT WILL SERVE INTERESTS OF THE COUNTRY”

October 7, 2022 - Levan Davitashvili, Georgia’s Minister of Economy and Sustainable Development, declared that selection of investors for construction of the Anaklia deep-water port will be announced this year. There is live interest, including from the Abu Dhabi ports and several consortia, he noted.




NETGAZETI.GE: “WE HAVE PLANS FOR TELAVI AIRPORT – DAVITASHVILI”

October 7, 2022 - “We have interesting plans for Telavi airport” (located in Kakheti region), declared Levan Davitashvili, Georgia’s Minister of Economy and Sustainable Development. First of all, use of the airport for domestic flights is being considered, for example, on the Telavi-Batumi route, he noted.




FORBES GEORGIA: “IN GLOBAL INTERNET ACCESSIBILITY RANKING, GEORGIA DROPPED TO 92^ND PLACE”

October 6, 2022 - In the Internet Accessibility Ranking of the British research organization Broadband Choices, Georgia dropped by 5 positions and ranks now 92^nd, the magazine reports. The average internet speed in Georgia makes up now 5.3 MB/sec, while the average monthly cost – $13.3.

finances & banking

BANKEBI DA FINANSEBI: ““WE EXPECT AN ACTIVE REDUCTION IN REFINANCING RATE AND A GREATER REDUCTION IN COST OF LOANS IN LARI BY SUMMER””

October 6, 2022 - Alexander Dzneladze, president of Georgian Banking Association, notes that National Bank of Georgia (NBG) expects that a reduction in the refinancing rate will be possible mainly from the next year. “However, we see that the inflation rate has relatively slowed down and we hope that by the end of the year there will be an opportunity to slightly ease monetary policy”, he says.




BANKEBI DA FINANSEBI: “KOBA GVENETADZE: ENSURING PRICE STABILITY IS A GLOBAL CHALLENGE”

October 5, 2022 - “Against the background of shocks that have developed one after another in recent years, ensuring price stability has become a global challenge”, says Koba Gvenetadze, president of National Bank of Georgia (NBG).

At that, Gvenetadze indicates that “the main challenge that Georgia is facing is the complexity of sanctions, which requires substantial resources from financial institutions”.




BANKEBI DA FINANSEBI: ““SINCE 2019 THROUGH 2021, ASSETS WITHDRAWN FROM PENSION FUND BY EMPLOYEES, WHO HAVE LEFT PENSION SCHEME, EXCEEDED 58M LARI””

October 4, 2022 - Since 2019 through 2021, assets withdrawn from the Pension Fund by employees, who have left the pension scheme, exceeded 58 million lari, said Giorgi Danelia, director of Georgian Pension Agency, at the Fiscal Committee meeting in the Georgian Parliament.

Danelia noted that in the same period, 1,880 employees used the right to leave the pension scheme, but 302 of them have returned then.

agriculture & food

REZONANSI: “THERE ARE IMPORTANT CHANGES IN GEORGIAN CONE BUSINESS”

October 3, 2022 - Zurab Dekanoidze, head of the licensing department at Georgian National Environmental Agency, reported that following results of the auction held in August for fir cone harvesting for export, licenses were issued for 5 and 10 years. The main locations of cone harvesting are Racha-Lechkhumi and Kvemo Svaneti, as well as Samtskhe-Javakheti and Guria.