Economic Press Monitor November 12 - 18, 2017	Days:  04 11 18 25 02

economic & politics

EUGEORGIA.INFO: “BILL ON POST WILL BE PUBLISHED SOON”

November 17, 2017 - By the Agreement on Association with the EU, Georgia undertook to conduct in the post sphere stage-by-stage rapprochement with three directives of the EU. That rapprochement has to be conducted within 5 years after enter of the Agreement in force.




FORBES GEORGIA: “GEORGIA’S POSITION IN INDEX OF INTERNET FREEDOM HAS IMPROVED”

November 15, 2017 - Freedom on the Net 2017, published by Freedom House, places Georgia with 24 points among “free” countries. Last year’s report gave Georgia 25 points.




TABULA: “THE GOVERNMENT AMENDS THE LAW, WHICH HINDERS CREATION OF EXPORT FINANCING AGENCY”

November 15, 2017 - Draft amendments in law “On Securities Market”, being submitted to the Parliament for consideration, annul the article, which forbids the state or the state-owned companies to own shares in financial institutions, Tabula reports.

As the article explains, this restriction hinders creation by the government of new body, Export Financing Agency.




REZONANSI: “NEXT PERSONNEL “BIDZINIADA” – TWO MOST ENTRUSTED ASSOCIATES OF IVANISHVILI”

November 15, 2017 - There are assumptions that Giorgi Kvirikashvili will leave office of the Prime Minister in next spring and will be nominated as presidential candidate, while new head of the government will be chosen again by Bidzina Ivanishvili (billionaire ex-premier), the newspaper says.

The matter concerns two possible candidates – Giorgi Gakharia (former Minister of Economy and Sustainable Development, presented now on the post of Interior Minister) and to Mamuka Bakhtadze (former director general of state-owned Georgian Railway, presented now on the post of Finance Minister).




TABULA: “THE GOVERNMENT DOES NOT NAME, WHAT SUM WILL BE SAVED BY OPTIMIZATION OF THE MINISTRIES”

November 14, 2017 - Tabula applied to press service of the Ministry of Finance, requesting information, if there are estimations concerning saving of budgetary resources after merge of the ministries.

The Ministry replied that one of positive results of the changes will be cut of the budget expenditure, however could not name exact indicator of reduction at this stage, Tabula reports.




NETGAZETI.GE: “PERSONS CLOSE TO IVANISHVILI ARE ADVANCED – “EUROPEAN GEORGIA” ON GOVERNMENTAL CHANGES”

November 14, 2017 - Leaders of oppositional European Georgia Giga Bokeria and Giga Ugulava negatively estimate the planned changes in the Cabinet.

Bokeria specifies that during ruling of Georgian Dream, the bureaucracy has grew by 10%.




REZONANSI: “LAND MORATORIUM SPLIT THE PARLIAMENTARY MAJORITY INTO TWO GROUPS”

November 13, 2017 - In September, accelerated consideration of amendments to law “On Ownership of Land of Agricultural Purpose” was launched, which envisage exemption of commercial banks and microfinancial organizations from restriction, imposed on acquisition of such lands by foreigners.

However, after first hearing, the consideration process was suspended, the newspaper says.




KVIRIS PALITRA: “BIG GOVERNMENT “RESET”!”

November 13, 2017 - Expert Vakhtang Dzabiradze considers that “changes in the Cabinet, perhaps, were rather necessary”. “However, it is important that they to be made elaborately and systemically, in other case we will get bluff again”, he specifies.

macroeconomics & budget

TABULA: “KAKHA KALADZE RECALLED THE BUDGET, SUBMITTED TO SAKREBULO BY NARMANIA”

November 17, 2017 - New Mayor of Tbilisi Kakha Kaladze recalled the capital budget for 2018, which was submitted to Sakrebulo (city council) by his predecessor, David Narmania.

The submitted budget “does not envisage our priorities”, Kaladze explained.




NETGAZETI.GE: “PRICES WILL REALLY GROW – INTERVIEW OF GIORGI PAPAVA ON RESULTS OF LARI DEVALUATION”

November 16, 2017 - While commenting on reasons of lari devaluation, economist Giorgi Papava points that “the main thing is that expectations have appeared”.

“When private sector cannot forecast lari exchange rate and watches such considerable fluctuations of the rate in such short-term period, it, certainly, faces bigger currency risk and reflects it in price”, Papava says.




BANKEBI DA FINANSEBI: “FROM TOBACCO EXCISE THE GOVERNMENT RECEIVED BY 60M LARI LESS THAN PLANNED”

November 16, 2017 - If income from excise on imported tobacco amounted in 7 months of 2016 to 494 million lari, the volume for the same period of this year has made up 322 million lari, the newspaper reports.

According to Deputy Finance Minister Giorgi Kakauridze, “import has decreased by 30 million boxes that brought income by about 60 million lari less”.




REZONANSI: “PEOPLE LOOK DAILY AT LARI FUNERAL”

November 16, 2017 - Vice-president of the National Bank of Georgia (NBG) Archil Mestvirishvili declared that drop of lari rate, in a certain degree, is caused by behavior of importers.

“What we see is importers, who bought currency in January-February in the past, became active earlier.




FORBES GEORGIA: ““S&P” EXPECTS GROWTH OF NATIONAL BANK’S RESERVES”

November 14, 2017 - Standard&Poor’s (S&P) expects that by 2020, reserves of National Bank of Georgia (NBG) will increase from $3 billion to $3.5 billion, the magazine reports.

As S&P notes, “Georgian banking sector maintained sustainability unlike banking sectors of the countries of the region”.




KVIRIS PALITRA: “INVESTMENT – IN PENSION?”

November 13, 2017 - In about a month, draft bill on pension reform will be submitted for consideration in the Parliament, the newspaper reports, reminding that transition to accumulative pension system is planned from the second half of 2018.

Beka Liluashvili, head of economic reforms department in the Economy Ministry, explains that “for persons, whose annual income makes up from 0 to 24,000 lari, the state will pay 2% in the Pension Fund”.

companies

FORBES GEORGIA: “TED JONAS BECAME MEMBER OF SUPERVISORY COUNCIL OF “SILKNET””

November 16, 2017 - Shareholders of SilkNet invited in supervisory council American Ted Jonas, who was legal adviser of Silk Road Group and its affiliated structures during more than 11 years, the magazine reports. During about 10 years, Jonas was also director of Georgia office of DLA Piper legal firm.




FORBES GEORGIA: ““NENSKRAHES” PROJECT TO ENSURE CLEANING WORKS IN THE GORGE OF NAKRA RIVER”

November 16, 2017 - JSC Nenskra Hydro, which implements project of series of NenskraHES hydroelectric stations, will finance cleaning of beds of minor inlets of Nakra river in Mestia municipality (Svaneti region), the magazine reports. Cleaning works were requested by residents of Nakra village.




TABULA: ““PUBLIC BROADCASTER” DEMANDS THE RIGHT OF ADVERTISEMENT AIRING”

November 15, 2017 - Public Broadcaster wants to obtain the right of airing commercials in its programs, Tabula reports. Respective legislative amendments were considered at the meeting of the Parliament’s Committee on Branch Economy and Economic Policy.

transport & communications

REZONANSI: “CHECKUP WILL NOT AFFECT CARS UNTIL 2019”

November 15, 2017 - Owners of cars might not worry about obligatory checkup until 2019, the newspaper reports.

At the first stage, subject to checkup will be passenger motor transport with more than 8 seats and weighing over 3.5 t.

finances & banking

REZONANSI: “LARI WILL NOT BE ABLE TO DECREASE TO 2.50 FOR A LONG TIME!”

November 17, 2017 - Nika Shengelia, analyst at FX Group, forecasted at the beginning of November devaluation of lari to 2.7-2.8 GEL/USD. The forecast caused negative estimations, but Shengelia adheres to the same position today, the newspaper reports.

agriculture & food

EUGEORGIA.INFO: ““GEORGIAN FARMERS DISTRIBUTION COMPANY” BEGAN REALIZATION OF FARMERS’ PRODUCTION”

November 17, 2017 - This year, Georgian Farmers Distribution Company began realization of farmers’ production and search of new and constant sales markets.

Now, we cooperate with Ajara Group and its hotels and restaurants, deputy director of the company Shako Japaridze declares, specifying that the company has signed contracts with 50 farmers.




BANKEBI DA FINANSEBI: “DONKEY MILK, PRODUCED IN GEORGIA, COULD BE EXPORTED”

November 15, 2017 - The first farm appeared on Georgian market, which produced donkey milk and cheese. The project is financed within “Produce in Georgia” state program, the newspaper reports, not specifying amount of this financing.

construction

LIBERALI: “CONSTRUCTION OF MULTIPURPOSE COMPLEX, CONNECTING “RADISSON” AND “TELEGRAPH”, IS PLANNED ON RUSTAVELI”

November 14, 2017 - Construction of multipurpose complex is planned nearby to Radisson hotel on the capital’s Rustaveli Avenue, the magazine reports.

As the article notes, the project has to connect Radisson and the hotel, which will be located in the Telegraph building.