Economic Press Monitor June 9 - 15, 2019	Days:  01 08 15 22 29

economic & politics

TABULA: “BANKING REGULATIONS HAMPER THE ECONOMIC GROWTH”

June 14, 2019 - Tbilisi Mayor Kakha Kaladze estimates that banking regulations “hamper economic development”. In particular, these regulations hamper developers, the construction sector, he specifies.




TABULA: “ACCORDING TO DIRECTOR OF THE PENSION AGENCY, “10-11%” OF PARTICIPANTS LEFT THE SCHEME”

June 12, 2019 - Levan Surguladze, director of Georgian Pension Agency, reports that accumulative pension scheme involved 806,000 people. From this number, 10-11% already left the scheme, he specifies.




TABULA: ““TI”: REACTION TO CORRUPTION IS A PROBLEM, IF IT CONCERNS THE GOVERNMENT OR PEOPLE, CONNECTED WITH “DREAM””

June 12, 2019 - Referring to conducted research, TI Georgia, Georgian branch of Transparency International, points that Georgia manages to maintain achieved progress in eradication of petty corruption. However, the country fails to improve a situation in fight against a high-level corruption, the organization states.




TABULA: “PENSION AGENCY NAMED CANDIDATES FOR INVESTMENT COUNCIL MEMBERSHIP”

June 11, 2019 - Georgian Pension Agency named candidates, who in case of approval by the Parliament, will became 5 members of investment council of the Agency, Tabula reports. These are Timo Viherkentta, Olivier Rousseau, Jean-Frederic Polsen, David Tsiklauri and Michael Ridley.

macroeconomics & budget

FORBES GEORGIA: “ISET: AT BEST, GEORGIA’S ECONOMY WILL GROW IN 2019 BY 5.9%”

June 14, 2019 - According to updated forecast of international school of economics at Tbilisi State University (ISET), Georgia’s GDP growth in the 2^nd quarter will make up 4.7%, while in the 3^rd quarter – 7.4%.

However, ISET indicates that the forecast is expected to be decreased.




FORBES GEORGIA: “IN WHICH SECTORS OF ECONOMY NUMBER OF EMPLOYED DECREASES/INCREASES”

June 14, 2019 - Referring to Sakstat, the magazine reports that employers’ number in Georgia in the 1^st quarter made up 619,400, increasing by 2.6% year-on-year.

At that, number of employed increased in all sectors, except construction and agriculture, the magazine specifies.




FORBES GEORGIA: “SUM, WHICH BUDGETARY ORGANIZATIONS SPEND FOR COMPENSATION OF NON-STAFF WORKERS”

June 13, 2019 - In the 1^st quarter, Georgian budgetary organizations spent 49.3 million lari for compensation of non-staff workers, the magazine reports. The article notes that this volume by 4.9 million lari exceeds the showing of the same period of 2018 and by 12.3 million lari – of 2016.




FORBES GEORGIA: “WHETHER NUMBER OF THE POOR DECREASED AFTER 2012 BY 400,000?”

June 13, 2019 - Irakli Kobakhidze, chairman of Georgian Parliament, declared that number of the poor in the country decreased after 2012 by 400,000 and made up 750,000.

According to the World Bank, poverty indicator in Georgia had decreased since 2010, however it raised in 2016 to 21.3%, while made up 20.1% in 2018.




FORBES GEORGIA: “467,284 PERSONS RECEIVE LIVING ALLOWANCE”

June 12, 2019 - Since the beginning of the current year, number of beneficiaries of living allowance in Georgia increased by 5,172 and as of May, made up 467,284, the magazine reports. As living allowances for January-May, 135 million lari were issued.




NETGAZETI.GE: “THE MINISTER REFUSES TO KEEP TAX BENEFITS FOR COMPANIES FROM SO-CALLED “GOLD LIST””

June 11, 2019 - Georgia’s Finance Minister Ivane Machavariani refuses to change the decision, which cancels tax benefits for the companies from so-called “gold list”, Netgazeti.Ge reports.

The business ombudsman Irakli Lekvinadze declared this after the meeting with the Minister on June 10.




FORBES GEORGIA: “THE WORLD BANK FORECASTS SLOWING DOWN OF GLOBAL ECONOMIC GROWTH RATE”

June 10, 2019 - The World Bank (WB) forecasts economic growth rate of 1.6% in 2019 in the region of Europe and Central Asia, to which Georgia belongs, the magazine reports. As the article notes, this is the lowest indicator for the last 4 years.




KVIRIS PALITRA: “HOW THEY “SAW” THE BUDGET – WHERE 66,000,000 DISAPPEARED”

June 10, 2019 - According to the State Audit Service’s report for 2018, revealed violations have totaled to 66 million lari. The Service conducted last year 25 financial audits and 53 audits of compliance.

energy, oil & gas

NETGAZETI.GE: ““NENSKRAHES”, APPROXIMATELY, WILL COME INTO SERVICE IN 2024-25 – ADMINISTRATION”

June 13, 2019 - NenskraHES will not commence operation, approximately, until 2024-2025, director of operations management of Nenskra Hydro (the company, which implements the project) Teimuraz Kopadze declared to Netgazeti.Ge. It was originally supposed to finish construction in 2021.

companies

NETGAZETI.GE: “THE WORLD BANK FORBADE ACTIVITY OF “CHINA RAILWAY 23^RD BUREAU GROUP”, WORKING IN GEORGIA”

June 12, 2019 - The World Bank (WB) forbade for 9 months activity of China’s state company, China Railroad Construction Corporation (CRCC), and its affiliated structures, CRCC International and CR23, Netgazeti.Ge reports.

The ban is connected with revealed violations, which the companies committed during the tender, announced within the project on improvement of East-West Highway (E60) in Georgia.




FORBES GEORGIA: “WE FOLLOW OUR STRATEGY”

June 11, 2019 - On June 6, TBC Group hosted Investor’s Day on the London Stock Exchange. At the presentations, it was declared that TBC Bank plans to expand 4 times base of clients by the end 2022, the magazine reports.




FORBES GEORGIA: “10 COMPANIES, IN WHICH BIGGEST FDI WERE MADE IN THE FIRST QUARTER OF 2019”

June 11, 2019 - Ireland with $133 million became Georgia’s largest investor in the 1^st quarter. Presumably, this is connected with acquisition of Adjarabet (Georgian gambling company) by the Irish company Paddy Power Berfair, the magazine says.




BANKEBI DA FINANSEBI: “PLANT FOR BUNS’ PRODUCTION FOR “MCDONALDS” WILL BE BUILT IN GEORGIA”

June 10, 2019 - Temur Chkonia, founder of Coca-Cola Bottlers Georgia (runs McDonalds chain in Georgia), reports that plant for buns’ production for McDonalds will be built in Georgia. The enterprise will be located in Lilo settlement of Tbilisi, while investments will amount to $5-6 million.

international cooperation

FORBES GEORGIA: “THE EU AMBASSADOR: WE ARE PROUD OF THE RESULT, ACHIEVED IN GEORGIA”

June 13, 2019 - Carl Hartzell, the EU ambassador in Georgia (appointed in September 2018), compares Georgia to a plane, which “is ready to take-off, however there still remain certain obstacles on the road”. However, he notes that the country has “very big potential”.