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Economic Press Monitor

February 21 - 27, 2021

Previous Issues:  Days: < 06 20 27 06 13 > 

 

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economic & politics

    BANKEBI DA FINANSEBI: “TURNAVA – IF WE SEE THAT PEOPLE DO NOT OBSERVE REGULATIONS AND BUSINESSES DO NOT FOLLOW PROTOCOL, WE WILL HAVE TO RE-INTRODUCE RESTRICTIONS”

    February 26, 2021 - While commenting on lifting of restrictions, imposed by Georgian government in response to COVID-19 outbreak, Minister of Economy and Sustainable Development Natia Turnava said: we cannot exclude that “In the future, such opening may cause certain deterioration of the epidemic situation”.

    “Of course, there is always our responsibility, but this responsibility should be shared by the business that we open”, the Minister pointed.


    REZONANSI: “WILL IRAKLI GARIBASHVILI HELP THE LARI RATE?”

    February 26, 2021 - Lari exchange rate has already approached 3.33 GEL/USD, which is less related currently to economic factors, the newspaper writes. As the article notes, experts say that national currency is now most affected by political processes.


    NETGAZETI.GE: “CUSTOMS CLEARANCE DEADLINE FOR CARS BROUGHT BEFORE MAY 2020 WILL BE POSTPONED TO JUNE 2021”

    February 25, 2021 - Prime Minister Irakli Garibashvili declared that deadline for customs clearance of vehicles, brought to Georgia between October 1, 2019 and May 1, 2020, is extended until June 1. Earlier, the deadline was extended until March 1.


    TABULA: “MEPS: CRISIS CREATES RISK OF DEVIATION FROM REFORMS OF ASSOCIATION AGREEMENT”

    February 24, 2021 - MEPs express concern with the rapidly deteriorating political situation in Georgia. In connection with arrest on February 23 of Nika Melia, the leader of opposition United National Movement, they sent a letter to Charles Michel, the President of the European Council.


    TABULA: “US: WHAT WE HAVE SEEN IN RECENT DAYS CONTRADICTS GEORGIA’S EURO-ATLANTIC ASPIRATIONS”

    February 24, 2021 - The US State Department declared that the US “is deeply troubled by the arrest of opposition leader Nika Melia and other members of the opposition in Georgia”. “Polarizing rhetoric, force and aggression are not the solution to Georgia’s political differences”, the statement reads.


    REZONANSI: “WHAT IS A BIGGER PROBLEM FOR ECONOMY – THE GOVERNMENT RIGIDITY OR THE OPPOSITION DESTRUCTION”

    February 24, 2021 - Current political environment in Georgia may have an impact on the country’s economy, the newspaper states. The article brings comments of two economists in this regard.


    TABULA: “GARIBASHVILI: THEY UNCONTROLLABLY RAISE PRICES ON MEDICINES, THIS REQUIRES REGULATION”

    February 23, 2021 - Speaking in the country’s Parliament on February 22, nominee Prime Minister Irakli Garibashvili declared: “We have no possibility of any control and no regulations” of prices for medicines, which is “unacceptable and requires setting within a certain reasonable framework”. Companies operate “with huge margins, with huge profits and raise price of medicines”, he pointed.


    REZONANSI: “GARIBASHVILI RETURNS WITH HIS ECONOMIC PROGRAM FORGOTTEN BY EVERYONE”

    February 23, 2021 - Nomination of Irakli Garibashvili at the post of Georgia’s Prime Minister reminded the economists of the economic plan that had been postponed for years, the newspaper says.

    Academician Avto Silagadze says that this plan was developed during Garibashvili’s previous terms in Premier’s office, but “then it was ignored”.


    TABULA: “COMPANY CONNECTED WITH GARIBASHVILI WON TENDERS FOR 112M LARI”

    February 23, 2021 - Non-governmental organization Waste Detector reported that LLC Serpentine, connected with Irakli Garibashvili (approved for the post of Georgia’s Prime Minister on February 22), won tenders of 112.14 million lari.

    In the period of 2011-2020, the company won in 158 tenders, 70 of which were held in absence of competition, while at 14 ones – with disqualification of rivals, Tabula reports.


    TABULA: “TIKARADZE: WE HOLD NEGOTIATIONS ON SEASONAL WORKS WITH FRANCE, ISRAEL, GREECE”

    February 22, 2021 - Regarding admission of Georgian citizens to legal seasonal works, Georgia’s Minister of IDPs from Occupied Territories, Labor, Healthcare and Social Protection Ekaterine Tikaradze declared that “the next countries, with which we have a negotiation regime, are France, Greece and Israel”. “However, there are certain negotiations with Cyprus too”, she noted.


    BANKEBI DA FINANSEBI: ““WITHOUT RADICAL CHANGES, WE WILL HAVE VERY DIFFICULT YEAR (YEARS), VERY DIFFICULT””

    February 22, 2021 - “Without radical changes, we will have very difficult year (years), very difficult”, former president of National Bank of Georgia Giorgi Kadagidze wrote on Facebook. “Meanwhile, the one-party Parliament “approves” the government, confidence in which has not even big part of supporters of Georgian Dream” (the ruling party), he pointed.


macroeconomics & budget

    FORBES GEORGIA: “FOREIGN TRADE AFFECTED BY THE PANDEMIC”

    February 23, 2021 - In 2020, Georgia’s trade turnover suffered biggest decrease after 2009, reducing by 15% and making up $11.3 billion, the magazine indicates.

    The article reports that Georgia’s export in 2017-2019 increased by combined 79%, but decreased by 12% in 2020.


    BANKEBI DA FINANSEBI: “AUDIT SERVICE POINTS TO WRONGFUL SPENDING OF FUNDS BY THE MINISTRY OF EDUCATION AND CULTURE OF ABKHAZIA”

    February 22, 2021 - Georgian State Audit Service points at wrongful spending of funds by the Ministry of Education and Culture of Abkhazian Autonomous Republic (operating in exile), the newspaper reports. The audit conclusion indicates also shortcomings in development of the Ministry’s programs and subprograms.


energy, oil & gas

    TABULA: “PATH TO ENERGY INDEPENDENCE: SHOULD WE BE AFRAID OF NEW POWER PLANTS?”

    February 25, 2021 - NamakhvanHES is not the only hydroelectric station in Georgia, which construction is opposed by population, however its example clearly shows approach of the country’s authorities to the energy sector, the article states.

    The fact is that the authorities are not so successful in coping with challenges, associated with construction of new hydroelectric power plants, which is the result of lack of transparency of the process, lack of public confidence in the state, the article points out.


transport & communications

    REZONANSI: “HOWEVER HARD THE GOVERNMENT TRIES, AIR COMMUNICATION WON’T BE RESUMED UNTIL SUMMER”

    February 25, 2021 - After almost one-year pause, Georgia has resumed regular flights since February, the newspaper says, pointing that this decision has not affected aviation yet.

    Natia Turnava, Georgia’s Minister of Economy and Sustainable Development, stated that “Airlines of several countries come to us, who are already represented in Georgia, but they are ready to expand the range of flights”.


    NETGAZETI.GE: “FROM TODAY, ADDITIONAL 180 NEW MINIBUSES WILL MOVE IN TBILISI – CITY HALL”

    February 22, 2021 - Tbilisi City Hall declared about procurement of 300 new minibuses, which will replace the old yellow ones.

    Out of which, 120 new minibuses have already operate on their routes, while remained 180 ones will be added to the Tbilisi public transport network from February 22, the City Hall reported.


construction

    FORBES GEORGIA: “RATING OF GEORGIAN CONSTRUCTION COMPANIES”

    February 26, 2021 - In Georgia, the construction sector and related spheres create 8.5% of GDP and employ more than 100,000 people, the magazine reports.

    The magazine publishes a rating of construction companies, based on their financial statements for 2019.


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