Economic Press Monitor October 13 - 19, 2019	Days:  05 12 19 26 02

economic & politics

TABULA: “KALADZE ON KHAZARADZE: WHAT DID HE SELECT [IN “PROGRESS BANK”], WHAT IS THAT – A ROLL, AND HE GOT A RAISIN?”

October 18, 2019 - Mamuka Khazaradze, founder of TBC Bank and public movement Lelo, asserts that in 2016, Bidzina Ivanishvili (billionaire leader of ruling Georgian Dream and ex-premier) demanded from him to acquire Progress Bank, but there were signs of “money laundering” in the bank and he has acquired allegedly only healthy assets.

In his turn, Tbilisi Mayor Kakha Kaladze (who founded Progress Bank in 2007, in which Ivanishvili purchased 22% in 2012) assures that Progress Bank “Had no kind of connection with money laundering”.




NETGAZETI.GE: “I WILL NEVER RETURN TO BUSINESS – MAMUKA KHAZARADZE”

October 16, 2019 - “I will never return to business”, declares founder of Georgia’s largest TBC Bank Mamuka Khazaradze, who founded recently political movement Lelo. “No circumstances will force me to return to business”, he stresses.




BANKEBI DA FINANSEBI: “DISAPPEARED ECONOMIC ATTACHES – WHY THE GOVERNMENT’S INITIATIVE FAILED”

October 15, 2019 - The newspaper reminds that initiative concerning commercial attaches at Georgia’s diplomatic representations abroad was announced as far back as 2016, during stay of Dimitri Kumsishvili in the office of Economy Minister.

Then in 2018, when the Minister was Giorgi Kobulia, it was decided that initially, number of attaches would make up 6 (being appointed in the US, Germany, Turkey, the UK, the UAE and China), the article specifies.




NETGAZETI.GE: “OCTOBER 15 IS A DEADLINE – WHAT “ANAKLIA CONSORTIUM” WILL PRESENT TO THE GOVERNMENT”

October 15, 2019 - On October 15, a deadline expires for presentation by Anaklia Development Consortium of documents, confirming replenishment of equity capital, and primary documents on credits to Georgian Ministry of Regional Development and Infrastructure, Netgazeti.Ge reports.

As the article notes, equity capital has to amount to about $120 million, while regarding credits of $400 million the Consortium holds negotiations with 4 financial institutions.




TABULA: ““TV PIRVELI”: NATIA TURNAVA LEAVES POST OF ECONOMY MINISTER”

October 15, 2019 - Referring to TV Pirveli broadcasting company, Tabula reports that Natia Turnava leaves post of Georgian Minister of Economy and Sustainable Development. The article notes that the Ministry does not confirm this information, however.

macroeconomics & budget

FORBES GEORGIA: “BY INCOME PER CAPITA, GEORGIA IS ON THE 104^TH PLACE IN THE WORLD”

October 18, 2019 - Referring to the IMF, the magazine reports that in 2018, Georgia’s average income per capita, taking into account purchasing power parity (PPP), made up $11,429 (PPP). By this indicator, Georgia occupies the 107^th place among 191 countries.




FORBES GEORGIA: “BY ECONOMIC GROWTH RATE, GEORGIA IS ON THE 44^TH PLACE IN THE WORLD”

October 17, 2019 - The IMF forecasts that Georgia’s economic growth in 2019 will make up 4.6%. As the magazine notes, Georgian government expects growth of 4.5%.




FORBES GEORGIA: “SHOULD WE EAT CULTURE?”

October 15, 2019 - Media project Waste Detector published new data, comparing Georgian local governments’ expenses on social programs and ones on leisure, culture and religious events, the magazine reports.

In particular, administration of Ambrolauri (Racha – Lechkhumi – Kvemo Svaneti region) spend this year 265,000 lari for social programs, which is 5 times less, than 1.34 million lari, envisaged for leisure, culture and religion.

energy, oil & gas

REZONANSI: “AFTER ELECTIONS, POPULATION WILL HAVE TO PAY FOR CHECK OF GAS NETWORK”

October 16, 2019 - Check of internal gas network becomes obligatory in Georgia, while its cost has to pay the population, the newspaper reports. Respective amendment has to be made to the Code of Product Safety and Free Circulation.

transport & communications

REZONANSI: “RUSSIA WILL TRY TO GET ADDITIONAL BENEFIT FROM GEORGIA THROUGH RESUMPTION OF AIR COMMUNICATION”

October 18, 2019 - Russian Federal Air Transport Agency decided to permit airlines Siberia and Globus to conduct flights between Moscow and Kutaisi (7 flights to week), the newspaper reports.

However, the Agency pointed to Russian media that issuing of permissions does not mean that decision on beginning of flights is already made (Russia interrupted air communication with Georgia in this July).




NETGAZETI.GE: “WE SUPPORTED CORRECTION OF AIR ROUTES IN THE SKY OVER ABASTUMANI”

October 17, 2019 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava said that the government supported creation of temporary 8-km no-flight zone over Abastumani observatory.

According to official information, the observatory addressed with request of flights’ ban over Abastumani to the Ministry, Netgazeti.Ge reports.




NETGAZETI.GE: “THE CITY HALL SAYS THAT PEDESTRIAN BRIDGES WILL NOT RETURN ON THE SAME LOCATIONS, FROM WHERE THEY WERE REMOVED”

October 17, 2019 - Tbilisi City Hall declares that out of 34 pedestrian iron bridges, existing in Tbilisi, 19 ones are planned to dismantle until end of the year. For now, 9 bridges are already dismantled, the City Hall notes.

finances & banking

BANKEBI DA FINANSEBI: “FROM THE MARKET OF MICROFINANCIAL ORGANIZATIONS, MAINLY ONLINE CREDIT ISSUER COMPANIES DISAPPEAR”

October 18, 2019 - Soon after enactment of banking regulation (January 1) in Georgia, part of local microfinancial organizations was shut down, the newspaper says.

In particular, there were 56 microfinancial organizations in Georgia in the 2^nd quarter, decreasing in number by 14 ones year-on-year.




BANKEBI DA FINANSEBI: “FROM NOW ON, RESERVE REQUIREMENT ON FUNDS, ATTRACTED IN FOREIGN CURRENCY, DECREASES FOR BANKS BY 5%, TO 25%”

October 17, 2019 - Referring to the order of president of National Bank of Georgia (NBG), the newspaper reports that minimal reserve requirement on funds, attracted in foreign currency, decreases for banks since October 17 by 5%, to 25%.

As the article notes, main reason of the decision is impact of devaluation of lari on inflation.




BANKEBI DA FINANSEBI: “EFSE ALLOCATED CREDIT LINE OF 10M EUR TO “BASISBANK””

October 16, 2019 - The European Fund for Southeast Europe (EFSE) allocated credit line of 10 million EUR, denominated in lari, to Georgian Basisbank, the newspaper reports. Ceremony of credit agreement signing was held in the capital of Moldova, Chisinau, on October 10.