Economic Press Monitor March 8 - 14, 2020	Days:  29 07 14 21 28

economic & politics

TABULA: “THE GOVERNMENT HIRED THE COMPANY FOR THE LAWSUIT WITH “ANAKLIA CONSORTIUM” FOR $319,000”

March 12, 2020 - In behalf of Georgian government, Agency of Anaklia Deep-Water Port hired White&Case LLP for arbitration lawsuit with Anaklia Development Consortium, Tabula reports. The 3-month contract was signed on March 3.




BANKEBI DA FINANSEBI: “PROCESS OF ANTI-DUMPING LAW ADOPTION IS DEADLOCKED AGAIN”

March 11, 2020 - Anti-dumping law had to enter in force in Georgia on January 1 of this year, however work on the bill still continues and terms of its enactment are foggy, the newspaper says.

The article indicates that the Ministry of Economy and Sustainable Development wants to postpone enactment date for June 2021.




TABULA: ““EDISON RESEARCH”: 73% OF THE POPULATION CONSIDER THAT THE COUNTRY DEVELOPS IN THE WRONG DIRECTION”

March 10, 2020 - By request of TV company Formula, Edison Research conducted survey, which showed that 73% consider that Georgia develops in the wrong direction, Tabula reports. 27% consider that the country develops in the right direction.




FORBES GEORGIA: “GEORGIAN MONEY AND AMERICAN LOBBY”

March 10, 2020 - Cost of lobbyist contracts, signed by Georgia in the US, totals to $4.85 million, the magazine reports. The article lists these contracts based on data, published according to FARA (Foreign Agents Registration Act).




BANKEBI DA FINANSEBI: “VAKHTANG CHARAIA – IT SEEMS TO ME THAT FROM THE PART OF BUSINESS, AGIOTAGE BECAUSE OF CORONAVIRUS IS EXCESSIVE”

March 9, 2020 - Vakhtang Charaia, director of the Forecasting and Analysis Center at Tbilisi State University, estimates that in case of moderate risk because of situation in connection with coronavirus, Georgia can suffer losses of 100-120 million lari.

“However, this sum in relation to Georgian economy is not of that volume, which can create any crisis in the country, at least from the point of view of jobs or activity of national economy”, Charaia declares.




KVIRIS PALITRA: ““PROSECUTOR’S OFFICE HAS TO INTERROGATE IVANE MACHAVARIANI!””

March 9, 2020 - Within case of false VAT invoices, Investigative Service of Georgian launched criminal prosecution against 53 persons, while detained 38, the newspaper reminds and notes that most of these persons are directors and factual managers of various companies. Investigative Service claim that the budget avoided loss of 100 million lari, the article specifies.

macroeconomics & budget

TABULA: “TSOMAIA: REDUCTION OF TAXES AND PUBLIC EXPENDITURES IS THE MOST CORRECT WAY OUT”

March 13, 2020 - Economist Akaki Tsomaia estimates that growth of public expenditures because of coronavirus spread automatically means growth of debts for mitigation of damage, inflicted to economy, which “ends, as a rule, in rise of taxes”.

At that, Tsomaia considers that because of officials’ dishonesty, “very small part from growth of these expenditures will reach concrete people, who need corresponding sum during the crisis most of all”.




REZONANSI: “IT COULD BE SAID DIRECTLY THAT PRICES WILL GROW!”

March 12, 2020 - Iva Chkonia, head of Georgian Distributors Association, points: “We saw that lari had strengthened during 1-2 months and then returned at once to a crisis mark”.

If the rate does not exceed mark of 2.95-3 GEL/USD, “We should not expect rapid growth of prices on core products, but if depreciation continues, we will see more quickly increase of prices for them and after that other products will also rise in price”, Chkonia forecasts.




BANKEBI DA FINANSEBI: “GVENETADZE – EVENTS, ACCOMPANYING THE CORONAVIRUS, BROUGHT RECORD FALL OF OIL PRICES, THESE EXPECTATIONS ARE REFLECTED IN EXCHANGE RATE”

March 12, 2020 - Koba Gvenetadze, president of National Bank of Georgia, indicates that “nominal effective exchange rate of lari had strengthened during the certain period and became stronger by about 18 tetri”.

“However, events, accompanying spread of coronavirus, brought record fall of oil prices and what we see today, is reflection of these expectations in connection with exchange rate”, Gvenetadze explains.




TABULA: “GVENETADZE: WE WILL INTERFERE IN CASE, IF EXECUTION OF MANDATE OF INFLATION IS ENDANGERED”

March 12, 2020 - Koba Gvenetadze, president of National Bank of Georgia (NBG), said that NBG will interfere in case, if “those developments, which are happen in connection with exchange rate, endanger execution of our mandate of inflation”. He declared this, while commenting on possible measures for mitigation of damage from coronavirus pandemic.




REZONANSI: “INVESTORS REFUSED WITHDRAWAL OF FUNDS FROM THE COUNTRY AND RETURNED THEM TO ECONOMY AGAIN”

March 11, 2020 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava indicates that volume of foreign direct investments in the 4^th quarter of 2019 has doubled and reinvestment volume increased 7 times.

That means that companies, including ones founded with foreign investments, have extended, the Minister specifies.

energy, oil & gas

REZONANSI: “WHAT EXPECTS GLOBAL AND LOCAL FUEL MARKETS IN NEAR FUTURE”

March 13, 2020 - While estimating influence of coronavirus pandemic on economy, chairman of Georgian Oil-Importers Union Vano Mtvralashvili points that if the process is extended in time, “it will essentially strike our economy”.

“We already felt the first blow in devaluation of lari that is very much evident”, Mtvralashvili specifies.

companies

FORBES GEORGIA: “COOPERATION OF “DIRSI” AND “SAKARTVELOS BANKI” PASSES TO THE NEW STAGE”

March 11, 2020 - Dirsi (residential complex in Tbilisi) signed a next agreement with Sakartvelos Banki (Bank of Georgia), which envisages simplified procedures of issuing of mortgage loans to buyers of apartments in the complex, the magazine reports. Dirsi cooperates with the bank since 2014.

finances & banking

BANKEBI DA FINANSEBI: ““SAKARTVELOS BANKI” OFFERS 3-MONTH GRACE PERIOD ON CREDIT OBLIGATIONS TO CONSUMERS”

March 13, 2020 - “Aiming reduction of flow of people in meeting places in order to prevent coronavirus spread, Sakartvelos Banki [Bank of Georgia] offers by a 3-month grace period on credit obligations to retail consumers”, the bank said in the statement.

In particular, those consumers, who have to pay sums on their credit service, will be able to delay monthly payments for 3 months through May.




BANKEBI DA FINANSEBI: ““TBC” ESTABLISHES 3-MONTH GRACE PERIOD FOR PAYMENT OF CREDITS BY BORROWERS – INDIVIDUALS, MICRO, SMALL AND MEDIUM BUSINESS”

March 13, 2020 - TBC Bank offers 3-month grace period for payment of credits by consumers.

The mentioned concerns “all individuals, micro, small and medium business borrowers, as well as all businesses, are engaged in tourism, catering and those industries, which are characterized by public meetings”, the bank said in the statement.




FORBES GEORGIA: “DERIVATIVES: BETTER MANAGEMENT OF FINANCIAL RISKS AND NEW INVESTMENT OPPORTUNITIES”

March 10, 2020 - In December 2019, Georgian Parliament approved bill on derivatives, which was drafted with assistance of EBRD and International Swaps and Derivatives Association (ISDA). The draft complies with demands of European directives.

tourism

KVIRIS PALITRA: “NATIA TURNAVA: “EXPORT AND TOURISM ARE THREATENED WITH BIGGEST BLOW DANGER””

March 9, 2020 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava indicates that “export and tourism are those spheres, which are threatened with biggest blow danger” because of coronavirus spread.

“The good thing is that our economy withstands external shocks and this is confirmed by our macroeconomic situation – against the background of coronavirus, national currency becomes stronger”, the Minister states.