Economic Press Monitor November 18 - 24, 2018	Days:  10 17 24 01 08

economic & politics

TABULA: “DENMARK PLACED GEORGIA ON LIST OF SAFE COUNTRIES”

November 22, 2018 - Denmark placed Georgia in category of safe countries, Tabula reports. The article specifies that the respective decision entered in force on November 21.




NETGAZETI.GE: ““DREAM” INDUCED ME TO DISPROVE REPORTS ON RACKET IN EXCHANGE FOR CONCESSIONS – OKUASHVILI”

November 22, 2018 - Zaza Okuashvili, founder of Omega Group, declares that representatives of ruling Georgian Dream induced him to disprove, in exchange for certain concessions from the authority, reports on racket, which he distributed a few weeks ago, Netgazeti.Ge reports.

As Okuashvili claimed, various high ranks, including billionaire founder of Georgian Dream Bidzina Ivanishvili and persons from his close surroundings, took part in this case, which Ivanishvili has denied.




TABULA: “BAKHTADZE ABOUT ZEROING OF DEBTS: THE OPPOSITION WANTED TO POSE OUR INITIATIVE AS THEIR IDEA”

November 20, 2018 - Georgia’s Prime Minister Mamuka Bakhtadze declared that the opposition wanted that write-off of debts of citizens, who are registered in the black list, “was perceived as their idea”.

On November 18, presidential candidate from united opposition Grigol Vashadze (the second round of elections will take place on November 28) declared that the government has to pay debts of those citizens, who are registered in the black list of debtors, while on November 19, the initiative in connection with excessive indebtedness was presented by the Premier.

macroeconomics & budget

BANKEBI DA FINANSEBI: “NATIONAL BANK OF GEORGIA SHOULD CONTINUE WORK IN CONDITIONS OF FLEXIBLE EXCHANGE RATE REGIME”

November 21, 2018 - The IMF resident representative in Georgia Francois Painchaud declared that National Bank of Georgia (NBG) has to continue work in conditions of flexible exchange rate.

Painchaud declared the mentioned at presentation in Tbilisi of regional economic outlook of the IMF and noted that the monetary policy is correctly concentrated on stability of prices, the newspaper reports.




FORBES GEORGIA: “ACCORDING TO VOLUME OF “IDLE CREDITS”, GEORGIA IS ON THE 56^TH PLACE IN THE WORLD”

November 21, 2018 - Report of the World Economic Forum (WEF) indicates that in 2017, share of idle credits in relation to GDP in Georgia averaged within 3.4% that corresponded to the 56^th place in the world. Average indicator of the world makes up 1.34%.

energy, oil & gas

KVIRIS PALITRA: “WHETHER DANGER OF REPETITION OF PONICHALA TRAGEDY IS REAL”

November 19, 2018 - In Georgia, about 10 people perish annually because of gas leak, while thousands get poisonings or injuries, the newspaper says.

The last tragic accident occurred a few days ago in Tbilisi, in Ponichala settlement, where explosion was so strong that three apartments were actually destroyed, the article points.

international cooperation

FORBES GEORGIA: “THE FIRST IN THE UN COMMISSION ON INTERNATIONAL TRADE LAW”

November 19, 2018 - Georgian international arbitration center (founded under Georgian Chamber of Commerce and Industry) is the first Georgian organization, which got status of observer in the UN Commission for International Trade Law, the magazine reports.

The article notes that the observer status in the Commission can be applied only to non-governmental organization.

finances & banking

BANKEBI DA FINANSEBI: “WHETHER THE GOVERNMENT UNDERSTANDS THAT ADVERTISING OF PRIVATE “SUBSIDIZING” CAN RETURN AS BOOMERANG SOON?”

November 22, 2018 - The article considers initiative of the authorities to cover overdue credits of 600,000 citizens. As one of key reasons of emergence of excessive indebtedness, the author names not limited activity of microfinancial organizations in the country.




NETGAZETI.GE: “FOR CONSIDERATION OF CONDITIONS OF “CARTU”, MICROFINANCIAL ORGANIZATIONS HAVE TIME UNTIL DECEMBER 5 – SHENGELIA”

November 21, 2018 - Besik Shengelia, head of Georgian Microfinancial Organizations Association, declared that microfinancial organizations have time until December 5 for decision on participation in the program of write-off of debts to the population, Netgazeti.Ge reports.

As Shengelia said, negotiations are not conducted directly with Cartu Fund (founded by Bidzina Ivanishvili, billionaire leader of ruling Georgian Dream), but National Bank of Georgia acts as the intermediary in this process.




BANKEBI DA FINANSEBI: “BANKS CONTINUE TO CATCH NON-CORE BUSINESSES”

November 20, 2018 - Sakartvelos Banki (Bank of Georgia) establishes already the fourth insurance company, the newspaper reports.

At the joint meeting, Insurance Companies Association and Insurance Union estimated the mentioned innovation as continuation of banks’ expansion policy and developed appeal to the government, State Service for Insurance Supervision and the Parliament, the article says.




BANKEBI DA FINANSEBI: “LADO GURGENIDZE AND “VIVUS” REFUSE FROM WRITE-OFF OF DEBTS TO CITIZENS”

November 20, 2018 - Lado Gurgenidze, chairman of supervisory council of online credit company Vivus, refuses write-off of debts to citizens, the newspaper reports.

As Georgia’s Finance Minister Ivane Machavariani declared, the company “for reasons that are unknown for me, has stated a refusal” to participation in the governmental initiative, which envisages write-off of debts of those citizens, who are registered in the black list of debtors.




NETGAZETI.GE: “WHAT RISKS ARE SEEN BY PART OF ECONOMISTS IN PRE-ELECTION WRITE-OFF OF DEBTS”

November 20, 2018 - While commenting on the governmental initiative on write-off of debts of those citizens, who are registered in the black list of debtors, economist Akaki Tsomaia specifies that very dangerous precedent has been created. “Why the good payer has to have now a desire to pay credit, when the government can write off a debt in the eve of elections”, he declares.




FORBES GEORGIA: “WHICH BANKS HAVE “IDLE CREDITS” MOST OF ALL”

November 20, 2018 - National Bank of Georgia reported that Georgian banks’ overdue credits (for 90 and more days) have reduced in September by 6.7 million lari, to 397.6 million lari, the magazine reports.

Overdue credits made up 1.6% of banks’ total loan portfolio.




TABULA: “VASHADZE: THE GOVERNMENT HAS TO WRITE OFF DEBTS OF PEOPLE WHO ARE IN THE BLACK LIST, THE STATE HAS TO COVER THEM”

November 19, 2018 - Grigol Vashadze, presidential candidate from united opposition, urges banks to write off debts of people, who are in so-called “black list”, while this sum has to be paid by the government, Tabula reports.

“Every second Georgian is enslaved by debts either to microfinancial organizations, or to those three banks, which have turned into usurers”, Vashadze declares (the matter concerns three largest banks of the country – TBC Bank, Sakartvelos Banki (Bank of Georgia) and Liberty Bank).