Economic Press Monitor December 9 - 15, 2018	Days:  01 08 15 22 29

economic & politics

FORBES GEORGIA: “GEORGIA: THE 6^TH PLACE IN THE DOING BUSINESS RATING”

December 13, 2018 - In the latest Doing Business rating of the World Bank, Georgia occupies the 6^th place (against the 9^th one in the previous rating). Georgia is outstripped only by New Zealand, Singapore, Denmark, Hong Kong and South Korea.

macroeconomics & budget

TABULA: “THE PARLIAMENT FAILED TO VOTE THE DRAFT BUDGET-2019 – THE REASON WAS LACK OF QUORUM”

December 13, 2018 - Voting draft of Georgia’s state budget-2019 in the Parliament failed because of lack of quorum, Tabula reports. As the article specifies, 67 MPs passed registration for voting, while at least 76 was necessary.




TABULA: “EXCISE ON FILTER-LESS CIGARETTES TO BE EQUATED WITH EXCISE ON FILTER CIGARETTES – AMENDMENT IN LEGISLATION”

December 12, 2018 - Excise on filter-less cigarettes will be equated with excise on filter cigarettes, Tabula reports. Referring to chairman of the Parliament’s Healthcare Committee Akaki Zoidze, the article reports that respective draft bill is already ready for initiation.




FORBES GEORGIA: “LET’S ACCUMULATE FOR THE OLD AGE, BUT ONLY AT THE EXPENSE OF INCOME TAX”

December 12, 2018 - So-called second pillar of pension system (accumulative scheme, which will be enacted since 2019) ruling Georgian Dream has adopted in the violent way, author of the article (MP from oppositional European Georgia Zurab Chiaberashvili) writes. Participation in the system for persons aged up to 40 years is obligatory.




BANKEBI DA FINANSEBI: “TENDERS AND SIMPLIFIED PROCUREMENTS – HIGH RISK OF CORRUPTION TRANSACTIONS WITH PUBLIC MONEY”

December 11, 2018 - Giorgi Bajelidze, head of Center for Monitoring and Studying of Procurements, declares that in state procurements, “the key challenge is simplified procurements, i.e. purchases, which are conducted without tender”. “As a rule, they are characterized with quite high corruption risk”, he specifies.




KVIRIS PALITRA: “WHO AND HOW POUNCED ON “UNCONTROLLED” MONEY OF THE BUDGET”

December 10, 2018 - Referring to conclusion of State Audit Service, the newspaper reports that factual expenses on subprograms of Tbilisi City Hall’s service of economic development in 2015-2016 considerably differed from the approved plan. In particular, factual expenses in 2015 made up 89% of the plan, while in 2016 – 34%.

energy, oil & gas

FORBES GEORGIA: “WHY PETROL DOES NOT BECOME CHEAPER, WHEN OIL PRICE DROPS?”

December 10, 2018 - In comparison with the beginning of October, oil price decreased by the end of November by 34% and made up $50.4 per barrel, i.e. returned to a mark of summer 2017, the magazine reports.

There are often expectations that petrol n Georgia has to decrease in price by the same percent that global oil price has decreases, the article notes.

companies

BANKEBI DA FINANSEBI: “FROM MKHEDRIONI TO BUSINESS – IMPRESSIVE BUSINESS INDUSTRY OF GIORGI RAMISHVILI (ZARALA)”

December 13, 2018 - Giorgi Ramishvili, aka “Zarala”, started activity in 1990-es, when he was member of paramilitary organization Mkhedrioni and criminal group Vera Brotherhood, the newspaper says.

After National Movement came to power, Ramishvili was arrested in 2005, but then released “in exchange for unknown sum”, the article reports, noting that his successful business activity begins after this.




FORBES GEORGIA: “TOP 10 OF GEORGIA’S LARGEST INVESTOR COMPANIES”

December 12, 2018 - In top ten of Georgia’s largest investor companies, 4 new companies appeared in the 3^rd quarter of this year, the magazine reports. These companies are TELASI (Tbilisi energy distributor), RMG Copper (copper mining), Georgian Manganese (manganese ore processing) and Atlantic Georgia (water heaters manufacturing).

transport & communications

BANKEBI DA FINANSEBI: “ANAKLIA PORT – THE ONLY WAY OUT OF THE LOGISTIC CRISIS”

December 13, 2018 - Currently, because of lack of deep-water port, Georgia cannot receive 75% of container vessels, sailing in the Black Sea, the newspaper says. This problem has to be solved by deep-water port Anaklia, the 1^st phase of which construction is planned to finish at the end of 2020.




BANKEBI DA FINANSEBI: “TBILISI SAKREBULO APPROVED NEW REGULATIONS, CONNECTED TO TAXIS”

December 10, 2018 - On December 8, Tbilisi Sakrebulo (City Council) approved new regulations, related to taxis, which will enter in force in 2019, the newspaper reports. According to the article, the new regulations envisage licenses of two categories – “A” and “B”.

ecology & health

NETGAZETI.GE: “WHO URGES GEORGIA TO RAISE PRICE ON TOBACCO PRODUCTS”

December 11, 2018 - According to World Health Organization (WHO), because of diseases and decline in productivity, caused by consumption of tobacco, Georgia’s GDP annually loses 2.4% that makes up about 825 million lari.

Referring to research of the UN Development Program of 2017, WHO declares that “raise of tax on tobacco in Georgia will lower in 15-year prospect an indicator of smoking of tobacco by 27%”.

finances & banking

BANKEBI DA FINANSEBI: “FOR SUSPENSION OF BANKING SECTOR’S EXPANSION, INSURANCE COMPANIES ADDRESS TO THE GOVERNMENT”

December 12, 2018 - Georgian insurance companies and insurance brokers held a press conference on December 11, speaking about pressure from the banking sector and urged the government and National Bank of Georgia to make effective steps in this connection, the newspaper reports.

As participants of the press conference declared, insurance companies, which are under control of banks, account for combined 80-90% of total profit of the insurance sector.




REZONANSI: “WHAT REALLY EXPECTS 600 THOUSAND PEOPLE AND IN WHAT CASE ZEROING OF DEBT IS CONSIDERED BRIBERY OF VOTER”

December 11, 2018 - Strength is in Unity (united opposition) accuses Georgia’s president elect and ruling team of bribery of voters and appeals in this regard to court, the newspaper reports. The opposition regards that write-off of debt of 600,000 citizens to financial organizations is a bribery, the article specifies.




TABULA: “KADAGIDZE ON DEBTS’ WRITE-OFF: ALL ASPECTS OF “THE MAIN INITIATIVE” HAVE SHORTCOMINGS”

December 11, 2018 - Giorgi Kadagidze, ex-president of National Bank of Georgia, indicates that within “the main initiative” on arrears’ write-offs for part of citizens, “process of negotiations, legal framework, announcement of the initiative, elementary arithmetic, economic effect and today even the technical implementation have shortcomings”.

Kadagidze posted the mentioned on his Facebook page and noted: “Unfortunately, this with accuracy of 100% reflects quality of our country’s governance “.