Economic Press Monitor November 11 - 17, 2018	Days:  03 10 17 24 01

economic & politics

BANKEBI DA FINANSEBI: “EVERYTHING BECAME OBSOLETE”

November 16, 2018 - The newspaper indicates that primary version of the draft state budget-2019 was calculated in assumption of lari exchange rate of 2.63 GEL/USD, while the reworked one – of 2.7 GEL/USD.

Author of the article, doctor of economics Rati Abuladze, reviews factors influencing lari exchange rate.




TABULA: “RESEARCH OF “EDISON RESEARCH”: VASHADZE – 38%, ZURABISHVILI – 34%”

November 15, 2018 - Referring to research of Edison Research, Tabula reports that if the second round of presidential elections was held tomorrow, Grigol Vashadze (candidate of the united opposition) had won 38%, while Salome Zurabishvili (candidate, supported by ruling Georgian Dream) – 34%,.

At that, 18% of respondents refused to answer a question, and 10% do not support any candidate.




TABULA: “NATSVLISHVILI: DISMANTLE OF FREEDOM ACT IS UNDERWAY THAT IS VERY GOOD”

November 15, 2018 - Draft of amendments to organic law “On Economic Freedom” is initiated in Georgian Parliament, which removes upper limit of 30% for ratio of expenditure and non-financial assets’ growth to GDP, Tabula reports.

MP from parliamentary majority Beka Natsvlishvili declares: “We will not be more limited by the regulation that [expenditure and non-financial assets’ growth of] the budget has to be solely 30%” of GDP.




NETGAZETI.GE: “MODERATION IS UNWRITTEN LAW OF MY FAMILY – BERA IVANISHVILI”

November 14, 2018 - Bera Ivanishvili (son of Bidzina Ivanishvili, billionaire leader of ruling Georgian Dream) posted on Facebook that during his wedding (November 11), “nobody was driven out of church and nobody was forbade to pray”. “Everything was within frameworks of moderation, as moderation is the unwritten law of my family”, he assures.




FORBES GEORGIA: “WEF: 5 MAJOR RISKS FOR DOING BUSINESS IN GEORGIA AND THE WORLD”

November 14, 2018 - Referring to poll of the World Economic Forum (WEF), the magazine reports that the most essential global risk for business is the problem of employment. The survey was conducted among 12,000 business entities in 140 countries.




TABULA: “MACHAVARIANI: INFRASTRUCTURE PROJECTS ARE DELAYED, AS WE ARE AFRAID OF CORRUPTION CHARGES AND WE “VACILLATE””

November 14, 2018 - Georgian Finance Minister Ivane Machavariani considers “very unfair” the corruption claims, related to infrastructure.

“All large infrastructure projects are financed by donors”, and at the same time, “are controlled and fully conform to donors’ standards of procurements”, the Minister specifies.




KVIRIS PALITRA: “WHO IS ENRICHED WITH LARI EXCHANGE RATE?”

November 12, 2018 - During the last week, lari exchange rate made two sharp jumps – once from 2.72 GEL/USD to 2.76 GEL/USD and then from 2.75 GEL/USD to 2.71 GEL/USD, the newspaper says.

The Finance Minister Ivane Machavariani blamed the mentioned on agiotage, caused by “dirty campaign” of opposition, and declared that “the drop is not connected anyhow with steps of either the government or National Bank of Georgia (NBG) “.




BANKEBI DA FINANSEBI: “WHAT CONNECTS DAVID KEZERASHVILI WITH “GEORGIAN DREAM””

November 12, 2018 - Giorgi Vashadze, head of campaign staff of opposition union Strength is in Unity, declared that ruling Georgian Dream “appropriated very well” David Kezerashvili (defense minister during period of ruling of National Movement), who is current partner of Otar Partskhaladze (former chief prosecutor, appointed after Georgian Dream had come to power).

However, expert Gia Khukhashvili supposes that Vashadze said this “figuratively”.

macroeconomics & budget

FORBES GEORGIA: “HOW PURCHASING POWER OF SALARIES CHANGED DURING ONE YEAR”

November 15, 2018 - In Georgia, household’s average monthly expenses amount to 1,318 lari, the magazine reports. The article specifies that most part of expenses – 30%, account for food and soft drinks, 13.1% – transport, 8.4% – healthcare, 3.4% – clothes and footwear.




BANKEBI DA FINANSEBI: “MACHAVARIANI: RATIO OF THE GOVERNMENT DEBT TO GDP MAKES UP 43% THAT BEARS MINOR RISK”

November 15, 2018 - Georgia’s Finance Minister Ivane Machavariani indicates that “debt of the government makes up 43% of GDP that bears minor risk”. “However, the main thing is not a percent, but for what this money is spent”, he points.




BANKEBI DA FINANSEBI: “RECENT CHANGES OF EXCHANGE RATE ARE CONNECTED WITH EXPECTATIONS”

November 14, 2018 - “Changes of exchange rate during the past one month are connected with expectations”, director general of Sakartvelos Banki (Bank of Georgia) Kakha Kiknavelidze considers.

“In short-term outlook, it is very difficult to predict in what direction lari exchange rate will go”, Kiknavelidze notes.




BANKEBI DA FINANSEBI: “GIORGI KOBULIA – “CHECK IN GEORGIA” WILL NOT EXIST IN OLD FORM ANYMORE”

November 13, 2018 - “We will considerably revise” the state program “Check in Georgia”, Georgia’s Minister of Economy and Sustainable Development Giorgi Kobulia declared.

“We decided to use Black Sea Arena intensively”, the Minister pointed.

energy, oil & gas

REZONANSI: “SEPARATISTS WILL LEAVE GEORGIA WITHOUT “ENGURHES” THIS WINTER”

November 13, 2018 - Revaz Arveladze, president of Energy Academy, declares that “now, Abkhazia takes away more electric power, than was previously established, they noticeably exceeded a limit”. In winter, EngurHES actually works solely for the occupied region, he specifies, noting that process of meters’ installation should start in Abkhazia, which will reduce consumption in the region.

conflict and court

FORBES GEORGIA: “STATEMENT OF “SALFORD” ON RUKHADZE’S MISAPPROPRIATION OF PROJECT WORTH ONE BILLION”

November 16, 2018 - London court ruled that search of assets of late billionaire Badri Patarkatsishvili, conducted by Georgian businessman Irakli Rukhadze, was illegal, the magazine reports.

After Patarkatsishvili’s death 10 years ago, his family initially entrusted search of his assets to Salford Capital Partners Inc.

companies

FORBES GEORGIA: “GOLD-MINER”

November 16, 2018 - Company RMG’s director of production and processing Tornike Lipartia and production manager in mining technologies Koba Menabdishvili talk about activity of this gold-mining company in an interview with the magazine.

Lipartia indicates that the copper plant operates without stopping since 1975, however, once the moment will come, when it is unable to work anymore.

finances & banking

BANKEBI DA FINANSEBI: “ROLE OF THE STATE BONDS IN EFFICIENCY OF MONEY-AND-CREDIT, INTEREST AND CURRENCY POLICY”

November 12, 2018 - In Georgia, market of the state bonds obviously “limps”, because there is practically no secondary trade system, based on the exchange principles, author of the article, capital market expert Vakhtang Khomizurashvili declares.

He estimates that in case of intensive operation of the secondary market, 80% of banks would apply to sale of state bonds for ensuring level of liquidity and meeting demand for lari.

agriculture & food

FORBES GEORGIA: “WHY AGRICULTURE DOES NOT DEVELOP?”

November 13, 2018 - In 2013-2018, Georgian government spent in total over 1 billion lari for support to development of agriculture, the magazine reports.

However, average growth rate of this sphere in 2014-2018 made up negative 0.4%, the article specifies.