Economic Press Monitor May 5 - 11, 2019	Days:  27 04 11 18 25

economic & politics

TABULA: “SAAKASHVILI: GEORGIA WILL BE DUBAI, SINGAPORE AND HONG KONG WITH DEMOCRATIC SHADE”

May 7, 2019 - “I have big plans in Georgia”, Georgian ex-president Mikheil Saakashvili declared in an interview to Belsat TV. According to him, “Georgia will be Singapore, Dubai, Hong Kong with democratic shade”.




TABULA: “TURNAVA ON PANKISI: WHAT HAPPENED, WAS SAD MISUNDERSTANDING; WE DEFENDED DEVELOPMENT OF PANKISI”

May 6, 2019 - While commenting on events in Pankisi Gorge on April 21 (clashes between local population and riot police, brought into the gorge), Georgia’s Minister of Economy and Sustainable Development Natia Turnava declared in air of Imedi Live: “Such incident will never happen again”.

Turnava stated: “We had defended there and we defend interests not of any particular business, but of Pankisi residents, employment in Pankisi, development of Pankisi” (the matter concerns construction of 5-MW hydroelectric station, which is opposed by local population).




TABULA: “TURNAVA: WHOLE PRIVATIZATION PROCESS WILL BECOME ELECTRONIC”

May 6, 2019 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava says that legislative initiative is prepared, which will turn whole privatization process electronic and transparent. People, who will submit the application, will be able to see online, without appearance at us, an advance of this application, she specifies.




FORBES GEORGIA: “GIORGI ISAKADZE’S INTERVIEW WITH GIORGI KOBULIA”

May 6, 2019 - Giorgi Kobulia, former Georgia’s Minister of Economy and Sustainable Development (held the post from July of last year to April 18 of this year) and former partner of McKinsey, says in the interview with Giorgi Isakadze (editor of Georgian edition of Forbes) that he felt from the very beginning that his views “not coincided fully” with views of Georgia’s ruling team.

Kobulia said that at appointment to the post, he had communication with Prime Minister and “quite detailed” discussion with leader of ruling party (billionaire Bidzina Ivanishvili).

macroeconomics & budget

TABULA: “ACCORDING TO EBRD FORECAST, GEORGIAN ECONOMY WILL GROW IN 2019 BY 4.5%”

May 10, 2019 - EBRD forecasts that Georgia’s real GDP will grow in 2019 by 4.5%, Tabula reports.

The article notes that forecast of Georgian government coincides with one of EBRD.




REZONANSI: “THEY MADE THE DECISION: SOON, TOBACCO WILL RISE IN PRICE TOO!”

May 8, 2019 - After raise of excise on cigarettes and introduction of ad valorem tax on tobacco, Georgian government plans to raise price of cut tobacco too, the newspaper reports.

As business ombudsman of the country Irakli Lekvinadze says, “The initiative is developed, which means correction of excise rates on cut tobacco in that direction that this part was controlled too”.




BANKEBI DA FINANSEBI: “BY POVERTY INDICATOR, GEORGIA IS THE SECOND IN EUROPE”

May 7, 2019 - Referring to Agora web portal, the newspaper reports that according to the World Bank, share of Georgian population, which lives to the sum less than $1.9 a day, made up 5% in 2017.

The article notes that by these data, Georgia in Europe lags behind only Romania, where this indicator makes up 5.8%.




FORBES GEORGIA: ““UNFORESEEN EXPENSES” – PROJECTS, WHICH ARE FINANCED FROM RESERVE FUND”

May 7, 2019 - In 2018, allocations from reserve fund of Georgian government amounted to 61.5 million lari, exceeding by 23% the initial plan.

As State Audit Service indicates, allocations from the fund were provided in most cases to actions, which have systematic character and at due planning would be possible to envisage them in budgets of the relevant spending departments.

conflict and court

NETGAZETI.GE: “FOUR PERSONS DETAINED ON A CHARGE OF ISSUING OF FALSE CONCLUSIONS ON “YELLOW” BUSES’ CHECKUP”

May 10, 2019 - On a charge of making false official documentation, 4 employees of three vehicle maintenance centers are detained, Netgazeti.Ge reports.

Investigation established that in these maintenance centers, located in Tbilisi, false positive conclusions were issued for individuals’ cars and so-called “yellow” passenger buses of Tbilisi Transport Company.




NETGAZETI.GE: “SHAREHOLDER OF “RUSTAVI-2” SUBMITS A CLAIM AGAINST THE CHANNEL AND DEMANDS 26M – GVARAMIA”

May 7, 2019 - Niki Gvaramia, director general of Rustavi-2, said that Nino Nizharadze, holder of stake of 9% in the broadcasting company, files a claim and demands 26 million lari.

In particular, Nizharadze demands from the company’s sales house 10 million lari, which she said, have disappeared in 2015 that Gvaramia names “complete absurdity”.

companies

FORBES GEORGIA: ““REDBERRY” ATTRACTED INVESTMENT OF $3.2M FROM “SAKARTVELOS KAPITALI””

May 10, 2019 - Georgian digital marketing agency RedBerry (founded in 2014) attracted investment of $3.2 million from Sakartvelos Kapitali (Capital of Georgia), the magazine reports. At the expense of this sum, the agency plans to offer new services.




FORBES GEORGIA: ““TEGETA MOTORS” WITH ASSISTANCE OF “TBC CAPITAL” ISSUED BONDS OF 30M LARI”

May 10, 2019 - Tegeta Motors (auto parts company) accomplished public offering of bonds of 30 million lari, the magazine reports. Nominal value per bond makes up 1,000 lari.




FORBES GEORGIA: “MOST PROFITABLE AUDITOR FIRMS IN GEORGIA – TOP 10”

May 8, 2019 - In Georgia, 252 auditor firms are registered, the magazine reports, specifying that only 13 of them have the right of audit of reporting of entities of public interest. Exactly these companies account for over 70% of total income of the sector, the article points.




FORBES GEORGIA: “CONSOLIDATION OF THE GAME”

May 8, 2019 - Irish Paddy Power Betfair acquired recently 51% in Georgian Adjarabet for $116 million and plans to buy within next 3 years the remained 49%, the magazine reports.

In an interview to the magazine, director of Paddy Power Betfair Peter Jackson explains that they look for the countries, where gamblings are allowed and highly developed.

finances & banking

REZONANSI: “NEW BASE FOR GETTING A CREDIT FOR THOSE, WHO RECEIVE MONEY “ON HANDS” OR ARE SELF-EMPLOYED”

May 8, 2019 - In National Bank of Georgia’s new regulation on “responsible crediting”, there is an allowance, which makes possible issuance of credit to persons, who do not receive salaries through banks, the newspaper says.

As a result, financial sector of the country, in 4 months after enactment of new regulation, creates new special base for those occupied, who get paid “on hands” (in cash), the article reports.