Economic Press Monitor March 22 - 28, 2020	Days:  14 21 28 04 11

economic & politics

BANKEBI DA FINANSEBI: “IF BECAUSE OF PANDEMIC, LARI DEPRECIATION CONTINUES, PERHAPS, IT WOULD BE NECESSARY TO IMPOSE CURRENCY CONTROL”

March 27, 2020 - Merab Kakulia, former vice-president of National Bank of Georgia (NBG), considers that NBG’s “tactics of interventions during the last 10 days had to be more flexible”. “I always was against irrational and unreasonable interventions”, he noted.




TABULA: “CARL HARTZELL: GEORGIA IS THAT BEST PLACE, WHERE I COULD BE IN THIS HARD TIME”

March 26, 2020 - Carl Hartzell, the EU ambassador in Georgia, indicates that crisis, arisen because of coronavirus pandemic, “concerns not only human health, but is also biggest challenge for economy”. “The EU is side by side with Georgia”, he declares.




TABULA: “KHUNDADZE – IF RECOMMENDATIONS ARE NOT FULFILLED, WE WILL BE FORCED TO APPLY MASS QUARANTINE”

March 26, 2020 - Dmitry Khundadze, chairman of Georgian Parliament’s Healthcare Committee, indicates that “density of population is noticed in districts, apartment buildings, yards and also at the so-called rural exchanges [points of meeting]”. Avoid density in order to avoid spread of coronavirus infection, he urges citizens.




FORBES GEORGIA: “TENDENCIES OF DEPENDENCE ON RUSSIA OF TOURISM AND MONEY TRANSFERS”

March 23, 2020 - In 2019, Russian visitors in Georgia made up 1.5 million in number, accounting for 15.7% of total indicator.

The Russian tourists spend approximately twice more, than the Azerbaijani and Armenian tourists do, the article specifies.

macroeconomics & budget

BANKEBI DA FINANSEBI: “KOBA GVENETADZE – WE WILL BE MORE OFTEN ON THE MARKET, ONE COULD SAY EVEN DAILY”

March 27, 2020 - “We will be more often on the market, one could say even daily”, president of National Bank of Georgia (NBG) Koba Gvenetadze declared on air of Imedi TV company.

According to Gvenetadze, NBG has new strategy, which will give the market an opportunity to undergo easier this process (i.e. crisis and devaluation of lari because of coronavirus pandemic).




TABULA: “THE CITY HALL SPENT 1M LARI FOR INVITED PARTIES, RECEPTIONS, HOTELS IN 2019”

March 27, 2020 - According to media project Detector of Wastes, entertainment expenses of Tbilisi City Hall amounted in 2019 to 961,498 lari. The City Hall’s daily average expenses reached 2,634 lari.




NETGAZETI.GE: “REASONS, WHY CORONAVIRUS-CAUSED CRISIS WILL BE MORE SHORT-TERM”

March 26, 2020 - Giorgi Kadagidze, former president of National Bank of Georgia, considers that for Georgia, the crisis caused by coronavirus pandemic, will be more short-term, than it seems today. In this regard, he names 5 reasons.




FORBES GEORGIA: “CURRENCIES, DEPRECIATED THE MOST DURING THE RECENT PERIOD – LARI IS ON THE FIRST PLACE”

March 26, 2020 - Against the background of economic shock, caused by coronavirus pandemic and drop of oil prices, Georgian national currency depreciates quite quickly, the magazine says.

As the article notes, from March 11 to March 25, lari depreciated by 21.18% that is actually the most considerable depreciation among currencies with floating rate.




BANKEBI DA FINANSEBI: “HALF A MILLION LARI SPENT FOR SPECIAL EQUIPMENT OF MEDICAL STAFF”

March 25, 2020 - The newspaper publishes news of InterPressNews, according to which Georgian Ministry of IDPs from Occupied Territories, Labor, Healthcare and Social Protection reported spending of 456,820 lari for equipment of medical staff since start of coronavirus spread.

In particular, 116,000 lari were spent for various protection suits, including 4,000 overalls of personal biological protection.




BANKEBI DA FINANSEBI: “FOR INSURANCE OF PRICE GROWTH ON 9 FOOD PRODUCTS, IT IS PLANNED TO SPEND 10M LARI FROM THE STATE BUDGET”

March 25, 2020 - For insurance of price growth on 9 food products in Georgia, the government plans to spend 10 million lari from the state budget, the newspaper reports. The mentioned sum, within the state program on maintenance of prices on food of prime necessity, will be allocated to the Ministry of Environmental Protection and Agriculture.




NETGAZETI.GE: “34M WILL BE SPENT FOR REHABILITATION OF YOUTH PALACE”

March 25, 2020 - For rehabilitation of Youth Palace, located on Rustaveli Avenue in Tbilisi, 34 million lari are envisaged, Netgazeti.Ge reports. Works are calculated on 3 years.




TABULA: ““NOW IS RAINY DAY” – “EUROPEAN GEORGIA” LAUNCHES INITIATIVE OF RETURN OF PENSION SAVINGS”

March 25, 2020 - In order to decrease damage from COVID-19 pandemic, European Georgia urges Georgian government to return pension savings to citizens, Tabula reports. The matter concerns the sums, accumulated within a year (from the moment of launch of pension reform in the country).




TABULA: “LARI DEPRECIATED AGAINST DOLLAR BY 5.09 TETRI, AGAINST EURO – BY 3.48 TETRI”

March 24, 2020 - Official exchange rates, set by National Bank of Georgia (NBG) following results of forex trades on March 23, made up 3.2389 GEL/USD and 3.4578 GEL/EUR. Lari depreciated against the US dollar by 5.09 tetri, against euro – by 3.48 tetri, reports Tabula.




BANKEBI DA FINANSEBI: “THE GOVERNMENT MAY ISSUE ELECTRICITY VOUCHERS TO POPULATION”

March 23, 2020 - Georgia’s Finance Minister Ivane Machavariani says that scenario is considered, according to which domestic economic activity will generally be restored in one and a half or two months. Though there is also scenario, according to which this will occur in 3-4 months, he notes.

companies

NETGAZETI.GE: “PRIME MINISTER WARNS “AIRZENA” ABOUT TEMPORARY EXPROPRIATION”

March 23, 2020 - Special flights, planned for return of Georgian citizens from Europe, are not executed (last week, Georgia closed own airspace), Netgazeti.Ge reports.

As the article notes, management of Georgian carrier Georgian Airways (AirZena) confers responsibility on Georgian authorities.




BANKEBI DA FINANSEBI: ““GEORGIAN AIRWAYS” GIVES UNPAID VACATION TO 95% OF EMPLOYEES”

March 23, 2020 - Roman Bokeria, director general of Georgian Airways, declared that the carrier gives unpaid vacation to 95% of employees.

Last week, Georgia closed own airspace, and because of cancelled flights, the company faces a financial crisis, Bokeria explains.

transport & communications

BANKEBI DA FINANSEBI: “THE GOVERNMENT WILL NOT SUBSIDIZE CHARTER FLIGHTS, PLANNED BY “GEORGIAN AIRWAYS” FOR EVACUATION OF GEORGIAN CITIZENS”

March 24, 2020 - Georgia’s Minister of Economy and Sustainable Development Natia Turnava declared that the government will not subsidize charter flights, planned by Georgian Airways for evacuation of Georgian citizens from abroad, the newspaper reports.

Turnava pointed that “2 charter flights will be carried out a week, the state will not carry out [their] subsidizing of any look”.

finances & banking

FORBES GEORGIA: ““TBC BANK” AND OPEC FUND SIGNED CREDIT AGREEMENT OF $50M”

March 24, 2020 - TBC Bank and OPEC Fund signed the 3-year credit agreement of $50 million, the magazine reports. The article specifies that the funds will be allocated for financing of international trade activity of the bank’s clients.

agriculture & food

REZONANSI: “IF THE RATE REMAINS ON 3.3 MARK, FOOD PRICES WILL RAISE – IVA CHKONIA”

March 27, 2020 - Iva Chkonia, president of Georgian Distributors Association, declared that if lari exchange rate remains on the mark of 3.3 GEL/USD, then prices of imported products will surely raise in April. “Except products of prime necessity, other products could not maintain a margin”, he notes.

construction

TABULA: “DIRECTOR OF “M2:” WE DO NOT STOP CONSTRUCTION, IT PROCEEDS BY NEW RULES”

March 24, 2020 - Irakli Burdiladze, director general of m² development company, said that because of coronavirus pandemic, “we do not stop construction, construction process is underway on all our objects, it only proceeds by new rules”. In particular, employees are checked by remote thermometers, medical masks are distributed, etc., he noted.