Economic Press Monitor June 16 - 22, 2019	Days:  08 15 22 29 06

economic & politics

FORBES GEORGIA: “IMF: WE URGE THE AUTHORITIES TO RECONSIDER ROLE OF PARTNERSHIP FUND”

June 21, 2019 - The magazine reports that according to recommendation of the IMF, Georgian authorities have to reconsider a role and functions of Partner fund.

Dividends, received from public enterprises, are quite limited, because of which the Fund is financially restrained, the IMF specifies.




FORBES GEORGIA: “WHAT THE AUTHORITIES WROTE TO THE IMF ABOUT CANCELLATION OF THE “GOLD LIST””

June 21, 2019 - Through cancellation of tax benefits for companies from the so-called “gold list”, Georgian government expects to receive 100 million lari, the magazine reports.

The article indicates that the government has notified on the subject the IMF on June 3, until part of business get to know of changes.




REZONANSI: “RUSSIAN TOURISTS AND BUSINESSMEN AS PART OF HYBRID WAR AGAINST GEORGIA”

June 20, 2019 - Michael Carpenter, former foreign policy advisor to the US Vice President Joe Biden (current presidential candidate) and former Deputy Assistant Secretary of Defense, wrote that he is not sure that the government of Georgia “realizes up to the end results of open door policy with Russia”.

Carpenter indicates that “because of so many “tourists” (FSB) and land acquisition by Russian businessmen, they, perhaps, will wake up in one day and will find out that not 20%, but 100% are occupied”.




FORBES GEORGIA: “BECAUSE OF NON-PRESENTATION OF FINANCIAL INFORMATION, COMPANIES ARE FINED WITH 735,000 LARI”

June 19, 2019 - Because of non-presentation of financial statements or its incomplete presentation, 68 Georgian companies are fined, the magazine reports. In total, fine of 735,000 lari is imposed on these companies.




FORBES GEORGIA: “GEORGIA STARTS USE OF BLOCKCHAIN TECHNOLOGY IN EDUCATION SYSTEM”

June 18, 2019 - Within reform of education, Georgian Ministry of Public Education, Sciences, Culture and Sport signed memorandum of cooperation with blockchain company Input Output HK Ltd, the magazine reports.

As the Minister Mikhail Batiashvili stated, “Georgia will be one of the first countries, which will take care of transit of education system to advanced, third generation of blockchain technology”.

macroeconomics & budget

BANKEBI DA FINANSEBI: “GORI WIND POWER STATION WILL BE ALIENATED IN A MONTH”

June 20, 2019 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava said that alienation of Gori wind power station is planned in about a month – a month and a half.

The Minister noted that there remained “quite difficult objects”, subjected to alienation.




REZONANSI: “NATIONAL BANK AND THE GOVERNMENT CONTINUE TO DESTROY LARI”

June 19, 2019 - David Tsikaridze, director of Admiral Markets, indicates that there are no fundamental factors inside the country for devaluation of lari. In summer, demand for lari grows and the rate has to be the most stable, he specifies.




FORBES GEORGIA: “TBILISI IN FIGURES – WHAT IS WRITTEN IN THE RESEARCH OF THE CAPITAL’S INVESTMENT POTENTIAL”

June 18, 2019 - Referring to Deloitte Georgia, the magazine reports that foreign direct investments in Tbilisi amounted in 2017 to $1.4 billion. Out of total, $480 million were invested in transport and logistics, $302 million – in financial sector, $158 million – in real estate.

energy, oil & gas

BANKEBI DA FINANSEBI: ““SHUAKHEVIHES” WILL START OPERATION IN TEST MODE SINCE NOVEMBER”

June 19, 2019 - ShuakheviHES will start operation in test mode since this November, deputy director of the energy project Sanjai Pathak reports. While in next February, ShuakheviHES and SkhaltaHES will commence operation with full load, he notes.

companies

FORBES GEORGIA: ““SHILDA” – HOW ENERGY-EFFICIENT WINEMAKING ENTERPRISE SAVES $72,000 A YEAR?”

June 20, 2019 - Winemaking enterprise Shilda (Kvareli municipality of Kakheti region) produces 1.4 million bottles of wine a year, the magazine reports. The company operates already for 5 years.

transport & communications

TABULA: “ACCORDING TO TSKITISHVILI, EXPANSION OF POTI PORT AT THIS STAGE IS “ONLY IN PLANS””

June 18, 2019 - Georgia’s Minister of Infrastructure and Regional Development Maia Tskitishvili said that desire of APM Terminals (AP Moller-Maersk), operator of Poti port, to expand the port is “only plans” at this stage.

At that, the Minister noted that the company not only last year, but “for very many years” declares that the terminal has to be expanded.




KVIRIS PALITRA: “STATEMENT OF “CONSORTIUM OF NEW POTI TERMINAL””

June 17, 2019 - Consortium of New Poti Terminal says that in Poti, construction of a breakwater (a pier) having length of 1,600 m was planned. It would solve a problem of impact of granular masses, brought by a river, on depth of the port of Poti, the company indicates and notes that memorandum on the project was signed in 2018.




BANKEBI DA FINANSEBI: “IT IS IMPOSSIBLE THAT SUCH A PORT WAS MADE WITH 100% OF MOTIVE OF SECURITY, A BUSINESS COMPONENT HAS TO EXIST THERE TOO”

June 17, 2019 - Georgia’s Finance Minister Ivane Machavariani points that the project of deep-water port’s construction in Anaklia “has full support of the government”. “The only thing that remained and where we abstain, is insurance of freights”, he specifies.




BANKEBI DA FINANSEBI: “WHETHER PORT OF POTI HAS THE RIGHT TO EXPAND IS THE LEGITIMATE QUESTION, SUCH QUESTIONS HAVE TO BE CONSIDERED IN PUBLIC DISCUSSION, BUT NOT THROUGH DEMONIZING OF IDEAS”

June 17, 2019 - Commenting on plans of construction of the deep-water mooring in Poti seaport, Georgia’s Finance Minister Ivane Machavariani points that issued construction permit “could become or not to become the basis for construction of the port” in future. “However, as the subject of Anaklia is politicized, dramatization of this subject has happened, allegedly this initiative threatens Anaklia” (where construction of deep-water port is underway), he declared to journalists.

finances & banking

FORBES GEORGIA: “IMF URGES THE AUTHORITIES NOT TO SOFTEN BANKING REGULATION AT THIS STAGE”

June 21, 2019 - The IMF warned Georgian authorities not to amend banking regulation, until there are no data, sufficient for assessment of impact on credit growth, the magazine reports.

According to the IMF, the authorities agreed “to continue assessment of crediting pace and at this stage, amendment of the regulation will not be made”.




FORBES GEORGIA: “ENACTMENT OF ESTONIAN MODEL FOR BANKING SECTOR IS POSTPONED ONCE AGAIN, UNTIL 2025”

June 21, 2019 - Enactment of so-called “Estonian” model of profit taxation for financial institutions in Georgia is postponed once again, now until 2025, the magazine reports.

Georgian government explained this with desire to avoid expected reduction of income.




FORBES GEORGIA: ““FITCH” ESTIMATES 10 GEORGIAN BANKS”

June 17, 2019 - Fitch Ratings published review of 10 Georgian banks, which the agency made on the basis of the IFRS 9 standard (introduced in Georgia last year).

As the magazine notes, these banks (TBC Bank, Sakartvelos Banki (Bank of Georgia), Liberty Bank, VTB Bank, ProCredit Bank, Basisbank, Terabank, Credo, Halyk Bank Georgia) account for 98% of total loan portfolio and 93% of total assets of Georgian banking sector.

construction

BANKEBI DA FINANSEBI: “SINCE MARCH 2018, CONSTRUCTION COMPANIES ARE FINED WITH TOTAL OF 34M LARI FOR VIOLATIONS”

June 20, 2019 - Tbilisi Vice-Mayor Irakli Khmaladze reported that “penalties, imposed for construction violations since March 2018, make up 34 million lari”.

Though, “not a single lari, paid as penalty to the budget, is a counterbalance of that damage, which construction companies cause to the capital and its population in the form of illegal construction or violations”, Khmaladze declared to journalists.




REZONANSI: “BIG STAGNATION ON REAL ESTATE MARKET”

June 19, 2019 - Lecturer of construction law Ucha Zakashvili considers that construction regulation in Georgia does not correspond market realities.

“Citizens purchased apartment through mortgage loans, but availability of services of this type is sharply restricted”, Zakashvili indicates.

tourism

FORBES GEORGIA: ““DELOITTE”: 3 CHALLENGES FOR TOURISM SECTOR IN TBILISI”

June 18, 2019 - Deloitte Georgia forecasts that turnover of tourism sector of Tbilisi will reach $751 million by 2022, increasing annually by 13% on average.

Referring to research of the company, the magazine reports that main existing challenges of the sector are labor qualification, excessive number of hotels and overload of the capital.