Economic Press Monitor June 2 - 8, 2019	Days:  25 01 08 15 22

economic & politics

FORBES GEORGIA: “HOW TO MEASURE ECONOMIC GROWTH AND INCLUSIVENESS – INTERVIEW WITH THE EBRD CHIEF ECONOMIST”

June 6, 2019 - Sergei Guriev, chief economist of the EBRD, indicates in an interview to the magazine that unequal opportunities are not limited only to inequality in income, but include also access to economic opportunities.

“In this plan, Georgia is not so well positioned”, Guriev declares.




TABULA: ““FREEDOM HOUSE”: CHALLENGES FOR GEORGIA ARE INFLUENCE OF OLIGARCHS AND PROBLEM WITH RULE OF LAW”

June 6, 2019 - Tabula brings quotations from last research of Freedom House, saying that in Georgia, “democratic trajectory showed signs of improvement”, but “progress has stagnated in recent years”.

As head of the organization Sarah Repucci points, Georgia’s two main challenges are oligarchic actors’ “outsized influence over policy and political choices” and the rule of law, being continued “to be stymied by political interests”.




NETGAZETI.GE: “79 PRO, 15 CONTRA – RESOLUTION ON PERSONS, EXPELLED FROM ABKHAZIA AND TSKHINVALI, ADOPTED IN THE UN”

June 5, 2019 - The 73^rd General Assembly of the United Nations adopted once again Georgia-initiated resolution on status of persons, violently displaced from Abkhazia and Tskhinvali region, Netgazeti.Ge reports. The resolution was supported by 79 countries, 15 voted against, and 57 abstained.




FORBES GEORGIA: “WHO TAKES PART IN GEORGIAN TENDERS? – DIPLOMATIC CORPS ESTIMATES STATE PROCUREMENTS”

June 5, 2019 - In 2018, Georgian government signed with nonresident companies 61 contracts worth 122 million lari, the magazine reports.

As the article notes, in terms of number of nonresident providers/suppliers, registered in State Procurement Agency, top-10 of countries includes Ukraine – 302 companies, Turkey – 210, Russia – 163, Azerbaijan – 111, China – 89, Germany – 86, Italy – 76, the UK – 52, Armenia – 45, the US – 35.




BANKEBI DA FINANSEBI: “AUSTRIAN AMBASSADOR – I CLEARLY SPECIFIED IN AN INTERVIEW THAT CORRUPTION IN GEORGIA IS AT LOW LEVEL AND RULE OF LAW IS SECURED”

June 4, 2019 - On May 30, TV Pirveli aired interview with ambassadors, which concerned business environment in Georgia.

Based on this interview, media spread statement of Austrian ambassador Arad Benkoe that “business development in Georgia is hampered by avoidance of decision-making and deficit of decision-making people”.




REZONANSI: “AMBASSADORS OF TWO EU MEMBER STATES AGAINST THE GOVERNMENT OF GEORGIA”

June 4, 2019 - In 2 days, one after another, ambassadors of EU countries (Austria and Italy) critically estimated Georgia’s business environment, the newspaper says. The ambassadors indicated that there are a number of factors, which hamper business development in Georgia.




KVIRIS PALITRA: “ROMAN KAKULIA: “I AM GOING TO GET ANSWERS FROM NATIA TURNAVA TO ALL QUESTIONS””

June 3, 2019 - APM Terminals (operator of Poti seaport), which planned to build the deep-water mooring in Poti, is going to launch a lawsuit against state agencies, the newspaper reports.

On May 30, Georgia’s Minister of Economy and Sustainable Development Natia Turnava cancelled the permission, issued to the company on May 2 by the Agency for Construction and Technical Supervision, and dismissed head of the Agency.




KVIRIS PALITRA: “… THE SITUATION ENTERED A DANGEROUS PHASE”

June 3, 2019 - As expert Gia Khukhashvili notes, “Activity of several groups is observed, for which, so to speak, green light is shown and which dominate on the market”. Elite corruption existed earlier and it exists now as well, however, unlike the former authority, it is added by corruption risks at the middle and low levels, he specifies.

macroeconomics & budget

BANKEBI DA FINANSEBI: “FOR “GOLD LIST” PARTICIPANT COMPANY, 45-DAY TERM OF PAYMENT OF IMPORT DUES ON WHEAT WILL BE KEPT”

June 7, 2019 - Georgian Revenue Service explains that 45-day term of payment of import tax will be kept for wheat. In case of all other goods, terms decrease according to May 31 amendments to Instruction on movement and registration of goods on Georgian customs territory.




TABULA: “BUSINESS OMBUDSMAN: BEFORE CONSULTATIONS WITH COMPANIES OF “GOLD LIST”, AMENDMENT SHOULD NOT ENTER”

June 7, 2019 - By order of Georgian Finance Minister of May 31, the so-called “gold list” is cancelled that means that business will have 5 days for payment of import tax instead of former 30 days, Tabula reports. Amendments in respect of excise goods will enter in force on June 12, while in respect of non-excise ones – on July 2.




BANKEBI DA FINANSEBI: “IF WE WANT TO ACHIEVE STABLE ECONOMY, INCLUDING IN CURRENCY PART, NEGATIVE BALANCE OF CURRENT ACCOUNT MUST BE LOWER THAN 5%”

June 5, 2019 - Georgia’s Deputy Finance Minister Giorgi Kakauridze estimates that major problem of Georgian economy is negative balance of current account.

Last year, that negative balance was within 7.7%, Kakauridze specifies.




TABULA: ““DETECTOR OF WASTES”: WE FINANCE COUNCIL OF HERALDRY WITH 423,000 LARI A YEAR”

June 5, 2019 - Non-governmental organization Detector of Wastes declares that Council of Heraldry (promoting state symbols/emblems) is financed with 423,000 lari a year.

The organization points that in 2008-2018, this Council has received with “doubtful appointment” 4.7 million lari, Tabula specifies.




BANKEBI DA FINANSEBI: ““SAKSTAT” – POVERTY INDICATOR IN GEORGIA DECREASED”

June 3, 2019 - Referring to Sakstat, the newspaper reports that in 2018, share of Georgian population below absolute poverty line made up 20.1%. At that, in urban areas, this indicator made up 18%, while in rural areas – 23.1%.

energy, oil & gas

FORBES GEORGIA: “GEORGIA BEGINS RETURNING OF ELECTRICITY DEBT TO TURKEY”

June 4, 2019 - From the current year, Georgia will begin returning of electricity debt of 1 billion kWh to Turkey, the magazine reports. The debt was collected in 1990-2011.

companies

NETGAZETI.GE: “FIRE IN LILO IS LOCALIZED, NOBODY SUFFERED – THE EXTRAORDINARY STATEMENT”

June 7, 2019 - Referring to the statement of Georgian Service for Emergency Situations Management, Netgazeti.Ge reports that the fire, which arose in the evening of June 6 in the Lilo market in Tbilisi, is localized.

According to the Service, burned down area makes up 1,000 square m.

transport & communications

FORBES GEORGIA: “INCOME AND FREIGHT TURNOVER OF “GEORGIAN RAILWAY” DECREASE”

June 6, 2019 - Georgian Railway finished 2018 with income of 424.6 million lari that is by 2.2% less than in 2017, the magazine reports. At that, the article notes that income decreases for the last 3 years.

construction

TABULA: “TBILISI CITY HALL PLANS TO BUILD “YOUTH VILLAGE” IN KOJORI”

June 7, 2019 - Referring to Tbilisi City Hall, Tabula reports about plans of building of “the youth village” on area of 25,000 square m in Kojori (suburb of Tbilisi).

Deputy Mayor Sofio Khuntsaria declares that Tbilisi has to become the festival city, and “Kojori will be very loaded in this direction”, being able to receive over 300 young people at once.




FORBES GEORGIA: “IN TBILISI, “HAMPTON BY HILTON” HOTEL WILL BE OPENED”

June 4, 2019 - The region’s first Hampton by Hilton hotel will be opened in historical part of Tbilisi, the magazine reports. Respective agreement had signed Hilton Worldwide and Blox.