Economic Press Monitor June 7 - 13, 2020	Days:  30 06 13 20 27

economic & politics

NETGAZETI.GE: “THERE IS A LONG LIST OF UNEXERCISED REFORMS IN GEORGIA – THE EUROPEAN COMMISSIONER”

June 12, 2020 - Oliver Varhelyi, European Commissioner for Neighborhood and Enlargement, says that Georgia still has a long list of unexercised reforms. We want to cooperate with the Georgian government on implementation of these reforms, he notes.




BANKEBI DA FINANSEBI: “ECONOMY MINISTRY NAMES JUNE 1, 2021 AS DATE OF ANTI-DUMPING LAW ENACTMENT”

June 9, 2020 - Georgian Ministry of Economy and Sustainable Development names June 1, 2021 as date of enactment of anti-dumping law.

The Deputy Minister Gennady Arveladze declared this at the meeting of the Parliament’s Committee on Branch Economy and Economic Policy.




TABULA: “GAKHARIA ON TOURISM: WE HAVE TO TEACH GEORGIANS TO HAVE A REST AND SPEND MONEY IN GEORGIA”

June 8, 2020 - “The first that we have to make, we have to teach to have Georgians to have a rest and spend money for tourism in Georgia”, Georgia’s Prime Minister Giorgi Gakharia declared at the meeting with representatives of Imereti region’s tourism sector.

Regarding acceptance of foreign tourists, the Premier said that this “will be difficult, as all this should be done carefully and reasonably, though it is possible”.




NETGAZETI.GE: “FOR HOLDING OF TENDER ON ANAKLIA PORT, START OF THE NEXT YEAR WILL BE BETTER TIME – TURNAVA”

June 8, 2020 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava declared that work is underway with international financial institutions in order to make new tender on construction of deep-water port in Anaklia possible. Tender documentation needs refreshment, as it was prepared in 2014 and a lot of things changed since that, she noted.




TABULA: “CHIABERASHVILI ON CRISIS: THE WAY OUT IS TO LEAVE MONEY TO PEOPLE, BUT “DREAM” GOES SOME OTHER WAY”

June 8, 2020 - Representative of oppositional European Georgia Zurab Chiaberashvili points that core economic problem, caused by COVID-19 pandemic, is demand shock. “The way out is to leave as much money as possible to the people”, he considers.

macroeconomics & budget

BANKEBI DA FINANSEBI: “COMPENSATION WAS DUE TO 170,000 PEOPLE, WHILE COMPANIES PROVIDED INFORMATION IN HALF, ON 95,000 PEOPLE”

June 11, 2020 - Giorgi Kakauridze, Georgia’ Deputy Finance Minister, declared that persons, who did not get paid in April (because of restrictions on business activity, imposed by the government in connection with COVID-19), made up about 170,000 in number, and the state compensation of 200 lari was due to them. However, companies provided information on approximately 95,000 people, he reported.




FORBES GEORGIA: “THE DISPROPORTIONATE FORCE”

June 11, 2020 - The article reviews process of de-dollarization and actions of National Bank of Georgia (NBG) in this direction. As author of the article (Giorgi Isakadze, editor-in-chief of Forbes Georgia) considers, “the disproportionate force” was used in this regard against the market players.




TABULA: “WORLD BANK: IN 2020, GEORGIAN ECONOMY WILL DECREASE BY 4.8%, ARMENIAN ONE – BY 2.8%”

June 10, 2020 - In its June report, the World Bank (WB) forecasts that in 2020, Georgia’s GDP will decrease by 4.8%. In 2021, growth of 4% is expected.




BANKEBI DA FINANSEBI: “THE PARLIAMENT SUPPORTED IN FIRST HEARING BILL OF PENSION INDEXATION”

June 10, 2020 - On June 9, Georgian Parliament supported in first hearing the bill on indexation of pensions (81 votes pro), the newspaper reports.

According to draft amendments to the law “On the State Pension”, pension size will be annually defined upon submission of the state budget to the Parliament.

energy, oil & gas

NETGAZETI.GE: “LIQUEFIED GAS WILL RISE IN PRICE? – THE PARLIAMENT ADOPTED INTRODUCTION OF NEW EXCISE IN FIRST HEARING”

June 11, 2020 - Georgian Parliament adopted in first hearing amendments to the Tax Code, which change the model of taxation of oil gases, Netgazeti.Ge reports.

As the article notes, the amendments replace two-stage model with one-stage, so that importers will pay unified excise upon implementation of import.




BANKEBI DA FINANSEBI: “DAVID NARMANIA – “STOPPED CONSTRUCTION OF HYDROELECTRIC STATIONS MUST BE RESUMED””

June 9, 2020 - David Narmania, chairman of Georgian National Energy and Water Supply Regulating Commission, spoke about situation in connection with COVID-19 on air of FM radio Commersant. He stressed also necessity of construction of hydroelectric stations.

companies

FORBES GEORGIA: “RATING OF MICROFINANCIAL ORGANIZATIONS”

June 12, 2020 - Based on data for 2019, confirmed by auditor company Grant Thornton, the magazine publishes rating of Georgian microfinancial organizations (according to assets).

As the article notes, because of introduction of system of responsible crediting, 2019 became one of the most difficult for microfinancial organizations and brought dramatic changes on the market.




BANKEBI DA FINANSEBI: “NEGOTIATIONS ON EXPORT OF GEORGIA-MADE MASKS ARE CONDUCTED WITH ITALY, THE US, RUSSIA, AUSTRIA AND ISRAEL”

June 12, 2020 - Referring to InterPressNews, the newspaper reports that Georgian company Medifarm holds negotiations on export of disposable masks with Italy, the US, Russia, Austria and Israel. As the article notes, the company produces up to 4 million disposable masks monthly.




NETGAZETI.GE: “WINNER OF 14-MILLION TENDER IS THE COMPANY, WHICH OTHER TENDER IS INVESTIGATED BY PROSECUTOR’S OFFICE”

June 10, 2020 - On June 9, Georgian Roads Department signed a contract with LLC Mamisoni on rehabilitation in Khulo (Ajara) of 5-km section of Batumi-Akhaltsikhe motor road. Rehabilitation has to come to the end in 18 months.

transport & communications

TABULA: “KALADZE: UNTIL OCTOBER 1, TBILISI SUBWAY WILL WORK STILL FROM 06:00 TO 23:00”

June 11, 2020 - Tbilisi Mayor Kakha Kaladze declared that rehabilitation in Tbilisi subway (launched on July 1, 2019), which was planned to finish by this July, is protracted because of COVID-19 pandemic. Foreign experts could not arrive to the country in time and works were suspended, he explained.

international cooperation

FORBES GEORGIA: “WHAT BENEFIT GREEN INVESTMENTS CAN BRING TO DEVELOPMENT OF SMALL BUSINESS IN GEORGIA?”

June 8, 2020 - The article reviews issues of green economy and possibility of attraction of investment resources in this direction.

In particular, the article indicates that over 100 small and medium-sized enterprises of the Eastern Partnership countries have implemented programs of effective and clean production, being supported by the EU-funded program “EU4Environment”.

construction

BANKEBI DA FINANSEBI: “IF NOT THE ANTI-CRISIS PLAN, 15-20 THOUSAND JOBS WOULD BE LOST IN CONSTRUCTION SECTOR IN TBILISI”

June 12, 2020 - Shota Berekashvili, co-director of development company m² Real Estate, indicates that if not the Georgian government’s anti-crisis plan, the company had to perform expenses optimization and some projects had to be protracted in time.

As we have large housing stock, we would manage to survive this crisis, but had to reduce some number of jobs, Berekashvili declared on air of pro-government TV company Imedi.




TABULA: ““CHANNEL ONE” ANNOUNCED 47-MILLION TENDER ON NEW BUILDING”

June 10, 2020 - Channel One of Georgia (Georgian Public Broadcaster) announced tender on construction of new office building worth 46.76 million lari, Tabula reports.

The building will be located in Tbilisi, on Politkovskaya Street, where Georgian Ministry of Economy and Sustainable Development has handed over to Public Broadcaster a site of 2 ha in 2017.

tourism

TABULA: “KVRIVISHVILI: WE EXPECT RECOMMENDATIONS FROM THE EU, HOW COMMUNICATION WITH THE THIRD COUNTRIES HAS TO BE OPENED”

June 9, 2020 - Mariam Kvrivishvili, chair of Georgian National Tourism Administration, reported that Georgia expects in July core recommendations from the EU, how communication with the third countries has to be opened.

“We have publicly declared positive attitude from the Baltic States, from their governments, that Georgia will be one of the first countries, with which flights will be re-opened”, Kvrivishvili declares.




BANKEBI DA FINANSEBI: “TOURISTS ON INNER TERRITORY OF HOTEL WILL HAVE TO MOVE WITH MASKS AND TO OBSERVE SOCIAL DISTANCE – MARIAM KVRIVISHVILI”

June 9, 2020 - Mariam Kvrivishvili, chair of Georgian National Tourism Administration, says that hotels already started introduction of regulation, connected with COVID-19.

“As for tourists, they will have to move on inner territory of hotels in masks, to observe social distance”, Kvrivishvili declares.