Economic Press Monitor February 9 - 15, 2020	Days:  01 08 15 22 29

economic & politics

BANKEBI DA FINANSEBI: “SOSO PKHAKADZE – REGULATIONS OF VARIOUS TYPE, WHICH IN SOME CASES ARE ENACTED WITH HIGH PACE, CREATE PROBLEM TO BUSINESS”

February 14, 2020 - Soso Pkhakadze, president of Wissol Group and head of Georgian Business Association, points that draft amendments to the Labor Code, presented in 2019, caused “fair, thoroughly grounded and professional criticism” by the Association.

We studied legislation of EU countries and came to conclusion that “part of amendments not only did not reflect the EU directives and provisions of international labor conventions, but also went far beyond their requirements”, Pkhakadze says in an interview to the newspaper.




TABULA: ““DREAM” HIRED FOR $300,000 ONE MORE LOBBYIST COMPANY IN THE US”

February 14, 2020 - Georgia’s ruling Georgian Dream hired one more lobbyist company in the US, DCI Group, Tabula reports. Respective contract was signed on February 12.




TABULA: “THE EU-GEORGIA ASSOCIATION COMMITTEE FAILED TO AGREE THE JOINT STATEMENT”

February 14, 2020 - At the meeting in Strasbourg, members of the EU-Georgia Parliamentary Association Committee failed to agree text of the joint statement, Tabula reports.

As Tabula explains, the document, prepared by Georgia’s ruling Georgian Dream, appeared unacceptable for European Parliament members and Georgian opposition.




TABULA: “KRAMER: IVANISHVILI’S ACTIONS DESTROY THE US-GEORGIA RELATIONS”

February 13, 2020 - The former Assistant US Secretary of State, fellow of Florida International University David Kramer commented on political processes in Georgia, including arrest of the secretary general of oppositional European Georgia Gigi Ugulava. He spoke on the subject on air of broadcasting company Formula on February 11.




FORBES GEORGIA: “BEST FOR BUSINESS EUROPEAN COUNTRIES – GEORGIA IS ON THE 18^TH PLACE”

February 13, 2020 - In rating of the most investment attractive European countries of 2020, published by EUCham, Georgia occupies the 18^th place among 46 countries, the magazine reports. The article notes that in the rating of 2019, Georgia was on the 16^th place.




BANKEBI DA FINANSEBI: “HOW MUCH EXPENSIVE IS LIFE IN GEORGIA – “CEO WORLD” PUBLISHED RATING OF THE MOST EXPENSIVE COUNTRIES TO LIIVE IN”

February 13, 2020 - The newspaper reports that CEO World magazine published rating of the most expensive countries to live in, which ranks Georgia the 123^rd among 132 countries.

In the rating 2020, Switzerland is named the world’s most expensive country, while Pakistan – the world’s most affordable country.




TABULA: ““GEORGIAN DREAM” HIRED NEW LOBBYIST COMPANY IN THE US, COST OF THE CONTRACT MAKES UP $900,000”

February 12, 2020 - Georgian Dream hired in the US a new lobbyist company, Hogan Lovells, Tabula reports. Respective contract was signed on January 30.




BANKEBI DA FINANSEBI: “SUPREME COURT FOUND UGULAVA GUILTY OF FUNDS’ MISSPENDING IN SO-CALLED “CASE OF FUND” AND SENTENCED HIM FOR 3-YEAR IMPRISONMENT”

February 11, 2020 - Georgian Supreme Court found Gigi Ugulava (leader of oppositional European Georgia, Tbilisi mayor under ruling of United National Movement) guilty of misspending of funds in so-called “case of the Fund” and sentenced him for 3-year imprisonment, the newspaper reports. The Court declared the decision without oral hearing.




KVIRIS PALITRA: “THERE IS BIG CHANCE THAT “DREAM”, IN EXCHANGE FOR MAINTENANCE OF POWER, WILL CONCEDE ANAKLIA PORT TO AMERICANS”

February 10, 2020 - Political scientist Khatuna Lagazidze stresses in interview to the newspaper that in spite of the fact that Georgia’s ruling Georgian Dream did not envisage position of the US Secretary of State Mike Pompeo in connection of deep-water port Anaklia, “Georgian authorities did not hear yet from the State Department such sharp statements, as from the Congress and the Senate”.

Lagazidze considers that most important statement of the recent moths was made by the speaker of Georgian Parliament of Archil Talakvadze after his meeting with the US Under Secretary of State.




FORBES GEORGIA: “WHAT PRE-ELECTION WRITE-OFF OF DEBTS COST “CARTU” FUND”

February 10, 2020 - In November 2018, in 10 days prior to Georgian presidential elections, it was declared that fund Cartu (founded by Bidzina Ivanishvili, billionaire leader of ruling Georgian Dream) plans to buy-out overdue debts of the population, totaling to 1.5 billion lari, the magazine reminds.

According to specially created website vali.ge, the process was finished by end of 2018, and all debts of 615,164 borrowers were written off, totaling to 4.1 billion lari.

macroeconomics & budget

REZONANSI: “EVEN STATE PROGRAMS ALREADY DO NOT HELP LOCAL PRODUCTION”

February 11, 2020 - Even state programs do not help local production, the newspaper points. Export in 2019 has increased, but it happened at the expense of re-export growth, while net export still remains at low level, the article indicates.




BANKEBI DA FINANSEBI: “IT IS IMPOSSIBLE TO OVERCOME POVERTY, WHEN YOU PRODUCE ALMOST NOTHING”

February 11, 2020 - According to the UNICEF survey of 2018, nearly 23% of Georgian households live on the breadline. Growth is fixed also in number of children, living in poor households – from 26% to 31% during 2016-2018, the newspaper reports.

energy, oil & gas

REZONANSI: “TBILISI GAS NETWORK REMAINS LEFT TO ITS FATE”

February 11, 2020 - Reports on explosions, killed and injured people because of malfunction of gas system spread very often during a winter season, the newspaper points.

As the article notes, there is almost a year that gas distributor company Tbilisi Energy operates in Tbilisi (instead of Kazakh-owned KazTransGas-Tbilisi), however nothing still changed in respect of the mentioned problem.

companies

FORBES GEORGIA: “TBILISI MAYOR SOLD FOR $10M BUILDING OF OLD HOTEL “KOLKHETI”, LOCATED IN KOBULETI”

February 10, 2020 - Referring to property declaration of Tbilisi Mayor Kakha Kaladze, the magazine reports that he has sold for $10 million old hotel Kolkheti, located in Kobuleti (Ajara).

Namely, the declaration indicates that on December 12, 2019, Kaladze sold 100% in LLC Kolkheti, which runs the hotel, to Archi group.

transport & communications

REZONANSI: “POTI PORT TRIES TO SUSPEND ANAKLIA PROJECT STRATEGICALLY”

February 13, 2020 - After suspension for indefinite term of the Anaklia deep-water port project, APM Terminals (operator of Poti seaport) submitted once again on February 11 the application on construction of the deep-water terminal in the port, the newspaper reports.

APM Terminals plans to put new terminal in operation in the 2^nd quarter of 2022 and invest $250 million for that end.

international cooperation

FORBES GEORGIA: “GEORGIA IS ALWAYS ON EBRD’S MIND”

February 14, 2020 - Catharina Hansen, EBRD regional director in the Caucasus (since 2019), points that current portfolio of the Bank in Georgia amounts to $3.6 billion.

In the statement, published by the magazine, Hansen specifies that about a half of the portfolio includes infrastructure sector, being followed by financial sector (a bit over one-third) and corporate sector (with 20%).




TABULA: “THE US STATE DEPARTMENT INTENDS TO ALLOCATE TO GEORGIA $63.5M IN 2021”

February 12, 2020 - The US State Department intends to allocate $63.5 million within various programs in 2021 to Georgia, Tabula reports. The article notes that the allocation needs approval of the US Congress.

ecology & health

FORBES GEORGIA: “MORAL RISK OF UNIVERSAL HEALTHCARE”

February 12, 2020 - In 2012, healthcare expenses of Georgia’s consolidated budget made up 1.6% of the country’s GDP, increasing in 2017 up to 3%, indicates opinion, published on the magazine’s blog. The biggest share in healthcare expenses (68.5% on average) has the state program of universal healthcare.




KVIRIS PALITRA: “GEORGIAN CHILD IS THE HUNGRIEST IN THE NEIGHBORHOOD (!) – ANATOMY OF POVERTY”

February 10, 2020 - In Georgia, which population makes up 3.7 million people, 927,993 persons consider themselves beggars, the newspaper reports.

The article notes that currently, state assistance is provided to only 427,373 persons, i.e. 119,582 families.

construction

BANKEBI DA FINANSEBI: “IN WHAT CASE UNFINISHED CONSTRUCTION PROJECTS WILL BE EXEMPTED FROM DEBT ON K2 DUTY”

February 12, 2020 - Zaza Gabunia, chairman Regional Policy and Self-Government Committee of Georgian Parliament, reported that objects with status of unfinished construction, which got permission before 2013, will be exempted from debt on K2 duty (coefficient of development intensity).

That exemption will apply on condition that new investor will be able to finish construction of the object until 2025, Gabunia declared to journalists.