Economic Press Monitor February 10 - 16, 2019	Days:  02 09 16 23 02

economic & politics

BANKEBI DA FINANSEBI: “SPECULATIONS THAT MONEY IN THE PENSION FUND LAY, ARE LOST OR UNDERGO INFLATION, IT IS NOT SO”

February 15, 2019 - Georgia’s Finance Minister Ivane Machavariani says that staffing of investment council of the Pension Agency will be completed in next few months. In turn, investment of funds in investment projects could start until end of the year, he points.




FORBES GEORGIA: “GEORGIA ADVANCED AMONG BEST EUROPEAN COUNTRIES FOR BUSINESS”

February 12, 2019 - In the EU Chamber’s (EuCham) rating of the best for business countries, Georgia occupies the 16^th place among 46 countries takes with score of 71 points (from 100), the magazine reports. The article notes that the country has improved its score by 2 points.




KVIRIS PALITRA: “COUNTERS COULD BECOME EMPTY SINCE MARCH 1”

February 11, 2019 - Since March 1, counters in Georgian shops could become practically empty, while production – to rise in price, the newspaper states.

According to the article, importers and distributors explain this possibility with enactment of new technical regulation on providing of information on food to consumer.




REZONANSI: “MINISTERS OF OUR GOVERNMENT SOME WORK AS SICK-NURSES OF OLD MEN, SOME – AS DRIVERS OF TRAILERS”

February 11, 2019 - Georgian ex-president Mikheil Saakashvili declared, while speaking at the meeting in Liege (Belgium) with his supporter Georgian emigrants, that “the best days of Georgia are ahead”, “evil will surely lose to good, light will surely win against darkness”.

According to Saakashvili, this is only the beginning of similar meetings, next of which will take place in Italy, then in France, etc.

macroeconomics & budget

FORBES GEORGIA: “AVERAGE SALARY OF WORKING POPULATION IN GEORGIA”

February 14, 2019 - Referring to Revenue Service, the magazine reports that income of 1.22 million private individuals was declared in Georgia in 2017.

According to research, conducted by PMCG, monthly income of 46% of private individuals is on average lower than 400 lari, while of 1% – exceeds 8,333 lari, the article specifies.




FORBES GEORGIA: “12 CAPITAL PROJECTS, ALLOCATIONS FOR WHICH FROM THE BUDGET OF 2018 WERE NOT SPENT”

February 14, 2019 - Referring to State Audit Service, the magazine reports that the state budget-2018 allocated 1.9 billion lari for financing of 64 capital projects, of which spending of allocations in 22 projects was below 80%. In 12 projects, spending of allocated sums did not took place at all.

energy, oil & gas

NETGAZETI.GE: “SUBSIDIZING OF GAS TARIFF IS CONDUCTED FROM PROFIT OF OIL AND GAS CORPORATION – DEPUTY MINISTER”

February 14, 2019 - Georgia’s Deputy Minister of Economy and Sustainable Development Natia Turnava declared that subsidizing of consumer gas tariff has been conducted from profit of Georgian Oil and Gas Corporation. In 2018, profit of the state-owned Corporation made up 150 million lari (in 2017 – 220 million lari), she noted.




TABULA: “KOBULIA: WE HOLD NEGOTIATIONS WITH RUSSIA AND, PROBABLY, WILL BUY SOME VOLUME OF GAS FROM THEM”

February 14, 2019 - “We hold negotiations with Russia and, probably, we will buy some volume of gas from Russia”, Georgia’s Minister of Economy and Sustainable Development Giorgi Kobulia declared. “We want that there was not one supplier of gas, but there were more than one supplier”, he pointed.

conflict and court

NETGAZETI.GE: “KHAZARADZE SPEAKS ABOUT ANAKLIA PORT AND IS NOT GOING TO LEAVE “TBC””

February 15, 2019 - Chairman of supervisory council of TBC Bank Mamuka Khazaradze commented in Facebook on demand of National Bank of Georgia (NBG) on resignation of him and his deputy Badri Japaridze. Khazaradze declares that he is not going to leave TBC, Netgazeti.Ge reports.




TABULA: “KHUKHASHVILI ON “TBC”: APPLICATION OF SANCTIONS WITH 11-YEAR DELAY IS UNCONVINCING, SOMETHING STINKS VERY MUCH”

February 15, 2019 - Political scientist Gia Khukhashvili indicates that National Bank of Georgia (NBG) has operative access to all banking transactions, and application of sanctions with 11-year delay “looks unconvincingly”.

At that, Khukhashvili asks: “Who is affected party?”.




NETGAZETI.GE: “FORMER EMPLOYEE OF AUDIT SERVICE DETAINED IN NORWAY ON CHARGES OF THEFT”

February 13, 2019 - In Norway, several citizens of Georgia, including former employee of Georgian Public Audit Institute Grigol Abralava, are detained on charges of theft, Netgazeti.Ge reports, with reference to Rustavi-2 broadcasting company.

The article notes that this information was confirmed by Georgian Interior Ministry.

transport & communications

FORBES GEORGIA: “GEORGIA IN THE VIEW OF THE BLACK SEA CONTAINER MARKET”

February 12, 2019 - By data of the first three quarters of 2018, Georgia accounts for about 14% of the Black Sea container market, reports author of the article (Irakli Danelia, representative of Maersk in Georgia).

The article notes that Georgian container market is represented by seaports of Batumi and Poti, of which the latter (owned by APM Terminals) is the largest.




FORBES GEORGIA: “GEORGIA, AS SEA GATE OF MIDDLE CORRIDOR”

February 12, 2019 - Georgia represents the shortest link for Central Asia via middle corridor (Central Asia – Caucasus corridor, part of Europe-Asia transport route) and, because of this, one of the key hubs, author of the article (Giorgi Doborjginidze, chairman of Georgian Logistics Association) notes.

Raise of competitiveness of middle corridor requires, first of all, improvement of sea communications, the author considers.

finances & banking

FORBES GEORGIA: “EXCESSIVE INDEBTEDNESS, REGULATION AND ECONOMIC GROWTH”

February 13, 2019 - Author of the article (Alexander Dzneladze, president of Georgian Banks Association) comments on regulations of crediting, enacted by National Bank of Georgia this year. “We do hope that toughening of regulation of banking system will not affect sharply rate of the country’s economic growth”, he declares.




NETGAZETI.GE: “MY PERSONAL OPINION IS THAT THIS IS NOT LONG-TERM REGULATION – KAKULIA ON CREDITS”

February 13, 2019 - Roman Kakulia, chairman of Georgian Parliament’s Committee on Branch Economy and Economic Policy, considers that toughening of retail crediting “is not a long-term regulation”.

“At a certain stage of development, in the conditions of development of awareness, probably, it will be possible to change this”, Kakulia declared on air of TV Pirveli broadcasting company.




BANKEBI DA FINANSEBI: “UNAMBIGUOUS FORECASTING OF NEGATIVE IMPACT OF NEW BANKING REGULATION ON ECONOMY IS EXAGGERATED”

February 13, 2019 - In his interview to the newspaper, professor Giorgi Tsutskiridze (who was one of heads of Georgian Banks Association) estimates impact of banking regulation, enacted this year.

Referring to credit institutions, the newspaper indicates that because of toughened regulations, mortgage crediting has decreased by 70% that negatively affects economy.

construction

REZONANSI: “VERY IMPORTANT DECISION – “SALE” OF CONSTRUCTION COEFFICIENTS IS PROHIBITED”

February 15, 2019 - Tbilisi Mayor Kakha Kaladze declared that “very important decision” is made, in particular “raise of coefficients and sale of K2 coefficient [intensity of development] will be suppressed”. The mentioned practice was acted since 2005.




BANKEBI DA FINANSEBI: “IRAKLI ROSTOMASHVILI: 40,000 CITIZENS COULD FACE AN EMPLOYMENT PROBLEM”

February 11, 2019 - Chairman of Developers Association Irakli Rostomashvili assumes that restrictions on issuing of mortgage loans, which became effective on January 1, will create an employment problem to 40,000 people, working in construction sphere. He posted the mentioned on his Facebook page.

tourism

FORBES GEORGIA: “5-YEAR CHALLENGE OF TOURISM – “G&T” FORECASTS GROWTH OF INCOME FROM TOURISM UP TO $3.6B”

February 11, 2019 - Investment company Galt&Taggart (G&T) forecasts growth of tourists’ number in Georgia up to 5.3 million in 2019, i.e. by 11.4% year-on-year.

Income from tourism, according to G&T forecast, will amount to $3.6 billion.