Economic Press Monitor June 20 - 26, 2021	Days:  12 19 26 03 10

economic & politics

TABULA: “THE GOVERNMENT MAKES UNEMPLOYMENT INSURANCE MANDATORY”

June 25, 2021 - Draft of new Georgian Social Code envisages launch of mechanism of compulsory unemployment insurance in the country, Tabula reports.

The work on the Code, in which Georgia will be assisted by the EU, development agencies of France and Czech Republic, should be completed in 2023.




FORBES GEORGIA: “GEORGIA IS LOSING VERY EXPENSIVE TIME BY HAMPERING “DIGITAL SILK ROAD” – ECONOMIST”

June 24, 2021 - Economist Ramaz Gerliani indicates that the projects of Anaklia deep-water port and Digital Silk Road show how much private investment projects in Georgia depend on government changes. This creates an unpredictable environment for investors, he says.




NETGAZETI.GE: “PARLIAMENT PASSED CONTROVERSIAL BILL ON PARTY FUNDING”

June 23, 2021 - On June 22, Georgian Parliament adopted a package of legislative amendments, drafted by the ruling Georgian Dream, according to which, if the party does not use at least half of the mandates, it will not receive state funding, reported Netgazeti.Ge. The law will enter in force on February 1, 2022.




FORBES GEORGIA: “ONLINE EVENT “INCLUSIVE GREEN ECONOMY FOR GEORGIA” TO BE HELD WITH ORGANIZATION OF EBRD”

June 22, 2021 - An online event “Inclusive Green Economy for Georgia” is being held on June 22, the magazine reports. The event is organized by EBRD and its Green Economy Financing Facility (GEFF).




KVIRIS PALITRA: ““IF A FOOTBALL PLAYER CAN BE A MAYOR, WHY AN ECONOMIC MANAGER CANNOT?””

June 21, 2021 - Opposition faction Lelo – Partnership for Georgia addressed Georgian Parliament with an initiative to create a commission for systemic corruption study. The faction initiated also registration of the draft law on creation of Anti-Corruption Agency in the country.

macroeconomics & budget

FORBES GEORGIA: “A COUNTRY STANDING OUT IN THE WORLD FOR UNEMPLOYMENT”

June 24, 2021 - International Labor Organization (ILO) places Georgia on the 10^th place in the world in terms of unemployment, the magazine reports.

Sakstat reported that in 2020, unemployment rate in Georgia made up 18.5%.




REZONANSI: “IN ABOUT A MONTH, LARI EXCHANGE RATE WILL FALL BELOW 3.0 INDICATOR”

June 24, 2021 - On June 23, at the end of the day, lari exchange rate on trading platform of Bloomberg made up 3.14 GEL/USD, the newspaper reports.

Nika Shengelia, vice-president of Forecasting and Research Center, supposes that the exchange rate will fluctuate between 2.95-3.1 GEL/USD until August 10.




BANKEBI DA FINANSEBI: “YBFA ANALYST: UPON SPEAKING ON CONNECTION BETWEEN REFINANCING VOLUME IN APRIL AND EXCHANGE RATE, NBG IGNORED FACTOR OF INTERVENTIONS”

June 21, 2021 - National Bank of Georgia (NBG) declared that linking volume of refinancing loans with fluctuations of lari exchange rate is wrong.

As an example, NBG brought data of this April, when average market exchange rate on March 31 made up about 3.45 GEL/USD (which was reflected in the official exchange rate for April 1), but refinancing loans of about 1.2 billion lari were allocated on the same day.

energy, oil & gas

REZONANSI: “WHAT IS CHANGED SINCE JULY FOR ELECTRICITY CONSUMERS AND IS IT MANDATORY TO SEND METER READINGS?”

June 23, 2021 - Tbilisi residents received a notification from TELASI (Tbilisi energy distributor) that they should inform the company via SMS about the data on electricity consumed as of June 30.

David Narmania, chairman of Georgian National Energy and Water Supply Regulating Commission, explained that this requirement is due to the separation of energy companies, resulting from obligations to the EU.

conflict and court

NETGAZETI.GE: “WHY DOESN’T THE GOVERNMENT PUBLISH IMPORTANT CONCLUSIONS ON “NAMOKHVANHES””

June 25, 2021 - Until now, Georgian Ministry of Economy and Sustainable Development and Georgian Finance Ministry did not publish important information on NamokhvanHES – cost-benefit analysis and conclusion on the project, indicates Netgazeti.Ge.

Salome Shubladze, lawyer at the Center for Social Justice, states that “when the state takes upon itself so many guarantees towards the company”, stance of the Finance Ministry on the project is especially important.




BANKEBI DA FINANSEBI: “ARCHIL KAIKATSISHVILI: “IF PROSECUTOR’S OFFICE IS REALLY INTERESTED IN THE CASE OF NBG’S NEW BUILDING, IT WILL REALLY DISCOVER THERE SIGNS OF POSSIBLE CORRUPTION””

June 22, 2021 - The newspaper publishes the article of commersant.ge about a study, conducted by Georgian Young Lawyers Association.

The study concerns an initiative of National Bank of Georgia (NBG) to build a new office building, in which the Association saw signs of possible corruption.




BANKEBI DA FINANSEBI: “NATIA TURNAVA – IN CONNECTION WITH “NAMOKHVANHES”, THERE IS A POSITIVE PROCESS UNDERWAY, WE WILL DEFINITELY REACH A CONSENSUS”

June 21, 2021 - Natia Turnava, Georgia’s Minister of Economy and Sustainable Development, declared that “very positive process is underway with participation of European mediators in connection with the NamokhvanHES project”.

“The state has taken the first step.

companies

BANKEBI DA FINANSEBI: “IRAKLI RUKHADZE: WE HAVE DESCENDED TO SUCH A LEVEL OF INTEREST ON PENSION LOAN, AFTER WHICH IT MAKES NO SENSE TO DISTRIBUTE PENSIONS AT ALL”

June 25, 2021 - Irakli Rukhadze, supervisory board’s chairman at Liberty Bank, declared that “Today, cost of pension distribution [on the basis of contract, signed with the state] exceeds income that we have from this product”. “We will be happy, if this contract is reviewed and altered”, he said.




FORBES GEORGIA: “WITH SUPPORT OF “SAKARTVELOS BANKI”, “AQUA GEO” EXPANDED PRODUCTION”

June 23, 2021 - Sakartvelos Banki (Bank of Georgia) has allocated 20 million lari to Aqua Geo, bottling company of Sno and Kobi mineral waters, the magazine reports. The article notes that the funds were allocated for procurement of new bottling lines.




FORBES GEORGIA: “LONG-TERM BUSINESS PARTNER – INTERVIEW WITH ZURAB KOKOSADZE”

June 23, 2021 - As of the 1^st quarter, 34% of portfolio of Sakartvelos Banki (Bank of Georgia) account for corporate direction, the magazine reports.

In interview with the magazine, Zurab Kokosadze, the bank’s deputy director general for corporate service, points: “Now, we focus on assistance to businesses during the pandemic and post-pandemic period”.

international cooperation

NETGAZETI.GE: “PART OF EMPLOYED IN GERMANY RETURN AHEAD OF SCHEDULE, THE STATE AGENCY IS SILENT”

June 25, 2021 - As of May 19, Georgian Employment Promotion Agency sent 4 groups consisting of 54 people to Germany for legal work. However, due to low wages, some of those employed in Germany return to Georgia ahead of schedule, reports Netgazeti.Ge.




REZONANSI: “GEORGIANS LEGALLY EMPLOYED IN GERMANY WON’T BE ABLE TO BRING EVEN HALF OF WHAT THEY HOPED FOR UPON DEPARTURE”

June 22, 2021 - Georgians, who went to Germany under a special employment program, have started again talking about violation of labor conditions, the newspaper reports. In particular, people employed at strawberry farm state that their working and living conditions have deteriorated even more instead of improving, the article points.

tourism

FORBES GEORGIA: “REPRESENTATIVES OF “GOOGLE” DIGITIZE AJARA”

June 21, 2021 - By invitation of Ajara Tourism Department, representatives of Google together with photographers work in the region, the magazine reports.

The main tourist sites of Batumi (including the Botanical Garden), Kobuleti and other municipalities will be pictured.