Economic Press Monitor March 10 - 16, 2019	Days:  02 09 16 23 30

economic & politics

REZONANSI: “PENALTY OF 30,000 FOR FOREIGNER, WHO WILL NOT CULTIVATE LAND”

March 15, 2019 - Draft of organic bill “On Ownership of Land of Agricultural Purpose” obliges foreigners to alienate their inherited agricultural land plots in case of not cultivation. Legal entities will be obliged to alienate their plots too, if investment obligations are not fulfilled.




TABULA: “GEORGIANS TO THE BONE WILL BE ABLE TO INHERIT LAND”

March 14, 2019 - Otar Danelia, chairman of Georgian Parliament’s Committee on Agrarian Issues, says that draft organic law “On Ownership of Land of Agricultural Purpose” secures that “ethnic, to the bone Georgians” would be able to inherit land. The matter concerns Georgians, who got foreign citizenship.




TABULA: “WHAT IS SAID ABOUT CORRUPTION IN GEORGIA IN THE STATE DEPARTMENT’S REPORT”

March 14, 2019 - The US State Department’s annual report on human rights indicates that Georgia’s law-enforcement structures have an independence problem that promotes high-level corruption, reports Tabula.

Referring to Transparency International, the report points that cases of petty corruption are rare, however corruption still represents “a serious problem” in the country.




BANKEBI DA FINANSEBI: “WHAT SANCTIONS WILL BE IMPOSED ON “ANAKLIA CONSORTIUM” IN CASE OF NON-FULFILLMENT OF CONDITIONS”

March 13, 2019 - Levan Akhvlediani, director general of Anaklia Development Consortium, declares that “heavy sanctions are envisaged in case we will be unable to receive first vessels until end of 2020 – beginning of 2021”.

Akhvlediani said this in program 360 Degrees of PalitraNews broadcasting company and noted that “the biggest risk threatens to our funds”.




REZONANSI: “IN THE SPRING, IVANISHVILI PLANS TO REPLACE FOUR MINISTERS”

March 13, 2019 - The newspaper reports that “several reliable sources confirm independently” that “big government changes are planned in the spring”.

The article notes, however, that “nobody in ruling Georgian Dream confirms officially information on these changes so far”.




TABULA: “CASE OF “TBC BANK” HAS NO CONNECTION WITH ANAKLIA PORT”

March 13, 2019 - Georgia’s Prime Minister Mamuka Bakhtadze indicates that “implementation of idea of Anaklia port was started a few years ago by initiative of our political team”.

However, we see attempt to connect the case, which is under investigation (in respect with TBC Bank), with Anaklia port, the Premier declares and adds: “This has no connection”.




KVIRIS PALITRA: ““THERE IS A LINE, BEYOND WHICH I WILL CONCEDE NOTHING” – EXCLUSIVE INTERVIEW WITH MAMUKA KHAZARADZE”

March 11, 2019 - In the vast interview to the newspaper, one of founders of Georgia’s largest TBC Bank Mamuka Khazaradze says in connection with Anaklia port: “It will not happen so that we will leave the office and someone will replace us”.

Khazaradze states that high-ranks started talks, “whether the port will be built or not, that some terms will be allegedly extended, etc.”.




BANKEBI DA FINANSEBI: “ACCUMULATIVE PENSION REFORM CAN BE CANCELLED – WHAT FATE EXPECTS ALREADY ACCUMULATED SUM”

March 11, 2019 - On March 7, Georgian Constitutional Court started consideration of a claim, demanding suspension of the pension reform, the newspaper reports.

The claim was submitted by two organizations – civil organization Georgian Democratic Initiative and law firm Toradze and Partners.

macroeconomics & budget

BANKEBI DA FINANSEBI: “THE GOVERNMENT WILL SPEND 12 MILLION 195 THOUSAND LARI FOR ACQUISITION OF 180 PICKUPS”

March 12, 2019 - Acceptance of applications on the tender, announced on acquisition of specialized vehicles (pickup), is already completed, and the lowest price is offered by GT Motors, the newspaper reports.

As the article points, estimated cost of procurement made up 12.2 million lari, while the company has offered the vehicles for 11.3 million lari.

conflict and court

NETGAZETI.GE: “CYBER-ATTACK ON “TBC” – “TV PIRVELI” PUBLISHES LETTERS, SENT BY KHAZARADZE TO GAKHARIA”

March 14, 2019 - TV Pirveli broadcasting company published 4 letters, author of 3 of which is founder of TBC Bank Mamuka Khazaradze (who resigned recently from post of supervisory council’s chairman at the bank), while the addressee is the Interior Minister Giorgi Gakharia, Netgazeti.Ge reports. The article notes that authenticity of these letters is not established yet.




NETGAZETI.GE: “OPPOSITION AT “TBC BANK” – SUPPOSEDLY, 3 PERSONS ARE DETAINED”

March 12, 2019 - Netgazeti.Ge reports that 3 persons which were, supposedly, under alcohol influence, have insulted security guards of the central office of TBC Bank (Tbilisi, Marjanishvili Street), at first verbally, while then physically.

The article notes that reports of TV companies TV Pirveli and Rustavi-2 display traces of blood and the suffered person in the police car.




REZONANSI: “ROBBERY OF “SAKARTVELOS BANKI” AND TAKING OF HOSTAGES – 20-YEAR-OLD GUYS ARE DETAINED”

March 12, 2019 - Georgian Interior Ministry detected armed robbery of branch of Sakartvelos Banki (Bank of Georgia), held on March 8 in Tbilisi.

Investigation established that armed persons in masks rushed into the bank branch and demanded money under the threat of weapon.

companies

FORBES GEORGIA: “COMPANY, FOUNDED BY GEORGIANS, ACQUIRES BANK IN GERMANY”

March 14, 2019 - Raisin, the company, founded by Georgians, plans to acquire German MHB Bank, the magazine reports. The article notes that details of the deal, which expects approval of the regulator, are unknown at this stage.




FORBES GEORGIA: “LARGEST EXPORTER COMPANIES OF GEORGIAN PRODUCTION – TOP 10”

March 12, 2019 - Referring to estimation of Sakstat, the magazine reports that Georgia’s export in 2018 amounted to $3.36 billion (year-on-year growth – 22.9%), while export without re-export – to $2.3 billion (growth – 11%).

The article names largest exporter companies of Georgian production (without re-export).

finances & banking

NETGAZETI.GE: ““TBC BANK” RECEIVED CREDIT RESOURCE OF $25M FROM BANKS OF JAPAN, QATAR AND THE NETHERLANDS”

March 15, 2019 - Commercial banks of Japan, Qatar and the Netherlands (not named) allocated to Georgia’s largest TBC Bank a credit resource of $25 million, Netgazeti.Ge reports. As the article notes, the sum will be completely used for corporate financing of the bank.




BANKEBI DA FINANSEBI: “PETER THIRRING – IT IS UNUSUAL THAT IN GEORGIA BANKS OWN INSURANCE COMPANIES”

March 15, 2019 - “It is unusual that in Georgia banks own insurance companies”, declares Peter Thirring, supervisory council member at Vienna Insurance Georgia and supervisory council chairman at GPIH insurance company.

As Thirring indicates, “models of risk management at bank and insurance company are totally different”.

agriculture & food

BANKEBI DA FINANSEBI: “LAND, WHICH IS NOT CULTIVATED, WILL NOT BE ABLE TO TAKE PART IN PROGRAM OF SUBSIDIZING AND CO-FINANCING”

March 13, 2019 - Certain sanctions will be envisaged for Georgian citizens, who do not cultivate own agricultural land plots, the newspaper reports. The sanctions are envisaged by the draft of organic law “On Ownership of Land of Agricultural Purpose”.

construction

NETGAZETI.GE: “SPENDING OF 9.7M IS PLANNED FOR REHABILITATION OF DRY BRIDGE AND ADJACENT TERRITORY”

March 15, 2019 - Tbilisi Development Fund begins rehabilitation of so-called “Dry Bridge” and Saarbrucken Square Bridge over Mtkvari River, as well as gardens of March 9 and Dedaena (Mother Language).

Total cost of the project makes up 9.7 million lari and it will be financed from Tbilisi budget, Netgazeti.Ge reports, with reference to Tbilisi City Hall.