Economic Press Monitor October 21 - 27, 2018	Days:  13 20 27 03 10

economic & politics

REZONANSI: “WHO WON THE YESTERDAY’S DEBATE – EVALUATION OF ANALYSTS”

October 26, 2018 - Presidential candidates – Salome Zurabishvili, backed by ruling Georgian Dream, David Bakradze from European Georgia and Grigol Vashadze from oppositional union Power in Unity (including National Movement), faced each other in live “Debate of 2018”, broadcasted by Channel One (Public Broadcaster), the newspaper reports.

The article provides comments on the debate, made for the newspaper by political scientist Nika Chitadze and analyst Zaal Anjaparidze.




BANKEBI DA FINANSEBI: “WHETHER “TWICE MORE ROADS AND BRIDGES” ARE BUILT IN GEORGIA?”

October 25, 2018 - “In Georgia, under ruling of Georgian Dream, twice more roads and bridges has been built than it was under National Movement”, Georgian Dream’s leader, ex-premier Bidzina Ivanishvili declared.

However, Transport Corridor Research Center points that Ivanishvili’s statement “does not square with reality on the basis of international reports”.




NETGAZETI.GE: “SALOME ZURABISHVILI: THERE IS CORRUPTION IN GEORGIA”

October 25, 2018 - Presidential candidate Salome Zurabishvili, who is backed by ruling Georgian Dream, declared at the election debates that corruption in Georgia still persists, Netgazeti.Ge reports.

“There is corruption and, by the way, there was a corruption, high-level corruption”, Zurabishvili declared and added: “I resisted to corruption then and now too, by the way”.




FORBES GEORGIA: “IS OR NOT GEORGIA LEADER IN THE REGION IN TERMS OF ECONOMIC GROWTH”

October 25, 2018 - “In terms of economic growth, Georgia is leading country in the region”, leader of ruling Georgian Dream, ex-premier Bidzina Ivanishvili declared.

The magazine reports that in the first half of this year, economic growth in Georgia made up 5.4%, while in the 1^st quarter in Armenia – 10%, in Turkey – 7.4%.




FORBES GEORGIA: “ACCORDING TO DEMOCRACY INDEX, GEORGIA IS THE COUNTRY WITH HYBRID REGIME”

October 24, 2018 - In The Democracy Index of 2017, published by the British The Economist, Georgia with 5.93 points (from possible 10) occupies the 79^th place among 167 countries, the magazine reports. In 2016, the country was on the 78^th place with the same 5.93 points.




REZONANSI: “THESE ELECTIONS WILL NOT DEFREEZE THE ECONOMY, FROZEN ON ONE PLACE”

October 23, 2018 - The newspaper tried to look into reasons of economic stagnation during recent years. It appeared that most economists quite negatively estimate current processes and do not expect improvement of situation after elections too, the article points.




NETGAZETI.GE: “PATARKATSISHVILI’S FAMILY DONATED 180,000 LARI TO ZURABISHVILI”

October 23, 2018 - Presidential candidate Salome Zurabishvili, backed by ruling Georgian Dream, got donation totaling to 180,000 lari form mother and sisters of Badri Patarkatsishvili (the late billionaire), Netgazeti.Ge reports.

The article notes that since launch of election campaign until now (i.e. during September 8 – October 18), donations to candidates have totaled to 3.8 million lari, of which Zurabishvili accounts for 3 million lari.




REZONANSI: “GVARAMIA: IVANISHVILI’S DEMANDS WERE NOVEMBER 7, DISPERSAL OF “IMEDI” AND PATARKATSISHVILI’S EXECUTION”

October 22, 2018 - “When we frequently speak about November 7 [2007 – dispersal by Georgian authorities of opposition demonstration] and mistakes of the authorities made then, Bidzina Ivanishvili [billionaire leader of ruling Georgian Dream] was that person, who demanded to finish events on November 7 in this way, to disperse Imedi, etc.”, Nika Gvaramia, director general of Rustavi-2 TV company, declared. He said this in own program Accents of Week, aired on October 21, the newspaper notes.




BANKEBI DA FINANSEBI: “OWNERS, WHO LEASE APARTMENTS, COULD APPEAR SUBJECTED TO NEW TAX”

October 22, 2018 - Head of Georgian National Tourism Administration Gocha Chogovadze declared that rent of individual apartments caused clients’ loss by hotels. The Administration decided to study this issue, he reported on air of Pirveli TV.

macroeconomics & budget

BANKEBI DA FINANSEBI: “IN 7 MINISTRIES, NUMBER OF EMPLOYEES DECREASED BY 3,207, WHILE REMUNERATION INCREASED BY 6.8M LARI”

October 26, 2018 - Referring to the draft state budget-2019, the newspaper reports that in comparison with 2017, number of employees of 7 ministries has decreased by 3,207, however remuneration increased by 6.8 million lari.

In particular, number of employees in the Ministry of Economy and Sustainable Development decreased by 19% in comparison with the plan for 2018, while remuneration increased by 2%, the article specifies.




BANKEBI DA FINANSEBI: “INITIALLY, NEW BANKING REGULATION WILL HAVE NEGATIVE IMPACT OF 0.6% ON ECONOMY”

October 24, 2018 - Georgia’s Finance Minister Ivane Machavariani declared that new banking regulation, which enters in force on November 1, will have initially negative impact of 0.6% on economy. This impact will be exhausted in about 1 year, he assured.




REZONANSI: “LARI RATE UNDERMINED THIS AUTHORITY”

October 23, 2018 - Lari started depreciation on November 20, 2014 and since that, has devaluated from 1.76 GEL/USD to 2.7 GEL/USD, the newspaper says.

In the import-dependent country, devaluation of lari caused sharp price growth, inflationary processes and excessive indebtedness, which have been followed by more intensive emigration, the article specifies.




KVIRIS PALITRA: “WHO CASHES IN ON DEVALUATION OF LARI?”

October 22, 2018 - Last week, lari started rapid depreciation and official exchange rate reached 2.7 GEL/USD, approaching a historical maximum (2.78 GEL/USD – December 2016), the newspaper says. The article notes that for the last 3 months, the US dollar increased in price against lari rose approximately by 25 tetri.




BANKEBI DA FINANSEBI: “MERCEDES VERA MARTINEZ: GEORGIA’S ECONOMY HAS GOOD INDICATOR OF GROWTH”

October 22, 2018 - Georgia’s economy has good indicator of growth, head of the IMF mission Mercedes Vera Martinez declared to journalists. The IMF expects in Georgia growth of 5.5% this year.

companies

TABULA: “MP’S WIFE DONATED 50,000 TO ZURABISHVILI, WHILE RECEIVED BEFORE THAT A SHARE OF THE COMPANY”

October 26, 2018 - Natia Khvistani, the spouse of MP from ruling Georgian Dream Victor Japaridze, donated to presidential candidate Salome Zurabishvili, backed by Georgian Dream, 50,000 lari on October 10, Tabula reports.

The article notes that since July, Khvistani is owner of 30% in LLC All Seasons.




FORBES GEORGIA: “THE INVESTOR”

October 25, 2018 - Oleg Osinovsky, richest person of Estonia, has already more than 10 years of business relations with Georgia, the magazine says.

However, public became aware of Osinovsky in relation with Georgia for the first time in 2014 in spite of already operating Georgian representation of his rail transportation company Skinest Rail, the article points.




TABULA: “THE COMPANY, CONNECTED WITH MP FROM “DREAM”, IS AMONG BENEFICIARIES OF PARTNERSHIP FUND”

October 23, 2018 - Tabula reports that according to agreement, signed in June 2016, Georgian Partnership Fund undertook financing with $15 million of the plant construction by Itong Capital.

The article points that one of founders of this company is Ilya Tsulaia, majoritarian MP from ruling Georgian Dream.

finances & banking

TABULA: “MACHAVARIANI: NEW BANKING REGULATIONS WILL PROMOTE LONG-TERM ECONOMIC STABILITY”

October 26, 2018 - Georgia’s Finance Minister Ivane Machavariani estimates that regulation on issuance of credits, which will enter in force on November 1, “will promote long-term economic stability and sustainability”. “This is approach of the responsible government”, he points.




BANKEBI DA FINANSEBI: “FOR PERSONS WITH MEDIUM AND HIGH INCOME, NEW BANKING REGULATIONS COULD BE SOFTENED”

October 24, 2018 - Vakhtang Butskhrikidze, director general of TBC Bank, declares that “for persons with low income, the regulation, which enters in force, is important”. “That ceiling of 50%, which enters in force, had to be surely established”, he says.

tourism

FORBES GEORGIA: “IS OR NOT GEORGIA A LEADING COUNTRY IN TERMS OF RATIO OF TOURISTS TO POPULATION SIZE?”

October 24, 2018 - Georgia’s Minister of Economy and Sustainable Development Giorgi Kobulia declared that number of tourists in Georgia twice exceeded population size. “According to this indicator, we are already leaders in the world, only a few countries are ahead of us, for example, Croatia”, he pointed.