Economic Press Monitor September 22 - 28, 2019	Days:  14 21 28 05 12

economic & politics

BANKEBI DA FINANSEBI: “OBLIGATION ON SUBMISSION OF ACCOUNTING REPORTS IS DELAYED TO COMPANIES OF CATEGORY IV FOR 2 YEARS”

September 27, 2019 - Georgian government supported initiative of the Finance Ministry on amendment of the law on accounting, reporting and audit, the newspaper reports.

As a result, enactment of obligation on reporting submission is delayed for 2 years for companies of the 4^th category.




FORBES GEORGIA: “COMPANIES WITH BEST FINANCIAL REPORTING WILL BE REVEALED”

September 27, 2019 - Within the joint project of National Fund for Support of Accounting, Reporting and Audit Reforms, the EU and the World Bank, companies with the best financial reporting will be revealed, the magazine reports.

The companies will be estimated with 100 points, in which management accounts for 40%, while corporate management, non-financial and other information – for per 20%.




TABULA: “MACHAVARIANI’S ANSWER TO KHAZARADZE: I DO NOT UNDERSTAND, WHY ONE HAS TO START POLITICAL ACTIVITY WITH SUCH LIE”

September 27, 2019 - Mamuka Khazaradze, founder of Georgia’s largest TBC Bank, claims that before the second round of presidential elections (2018), the government forced banks to nullify indebtedness of citizens from the so-called “black list” of borrowers (i.e. having the overdue credits).

In reply, the Finance Minister Ivane Machavariani declares: “I was fully included in this process and it was conducted absolutely transparently”.




TABULA: “SERGEY LAVROV EXPRESSED WISH TO RESUME AIR COMMUNICATION WITH GEORGIA”

September 26, 2019 - “I would restore air communication” with Georgia, Russian Foreign Minister Sergey Lavrov declared (Russia interrupted air communication with Georgia since July 8 of this year).

“I think, it will be correct, as most of Georgian population realized negative character of provocation, which happened in Georgian Parliament”, Lavrov explained.




TABULA: “ACCORDING TO “TBC” FOUNDERS, THEY WERE FORCED TO NULLIFY CREDITS, WHICH WERE IN THE BLACK LIST, BEFORE ELECTIONS”

September 26, 2019 - Before the second round of presidential elections (2018), the government pledged to nullify indebtedness to more than 600,000 citizens, who were in the so-called “black list” of borrowers, Tabula reminds. The article points that necessary sum was paid by Cartu fund (founded by Bidzina Ivanishvili, billionaire leader of ruling Georgian Dream), which envisaged 100 million lari for zeroing of indebtedness of 1.5 billion lari.




TABULA: “BOKERIA: WE WILL CANCEL HARMFUL REGULATIONS, THE GOVERNMENT WILL REMOVE LESS TAXES FROM THE PEOPLE’S POCKET”

September 25, 2019 - Leader of European Georgia Giga Bokeria declares that there is a lot of regulations, adopted by ruling Georgian Dream, which should be cancelled – “There is already the 7^th year, that all this continues”. “All these initiatives, which interfere with the free market and spend our money”, should be cancelled, he points.




REZONANSI: “NOBODY WILL BE PERMITTED TO WORK SIMULTANEOUSLY AT TWO JOBS ANY MORE?”

September 23, 2019 - Legislative package, prepared by MP from Georgian Dream Dmitry Tskitishvili, prohibits citizen’s employment at more than one job, if when total working hours exceed the norm, established by the Labor Code.

In particular, working time should not exceed 40 hours a week and 8 hours a day.




TABULA: ““ANAKLIA CONSORTIUM”: “MERIDIAN” IS NOT THE ONLY POTENTIAL INVESTOR”

September 23, 2019 - Anaklia Development Consortium declares that Kazakh company Meridian Capital Limited is not the only potential investor of the project of Anaklia deep-water port. The Consortium indicates that its holds also negotiations with large American fund, which is presented to Georgian government too.

macroeconomics & budget

FORBES GEORGIA: ““TBC”: IF LARI DOES NOT STRENGTHEN, INCREASE OF MONETARY POLICY RATE IS EXPECTED AGAIN”

September 27, 2019 - TBC forecasts that if lari exchange rate does not become stronger, National Bank of Georgia (NBG) on the scheduled sitting of October 23 will raise the refinancing rate by 0.5 percentage points.

At the extraordinary sitting of September 25, the rate was already raised by 0.5 percentage points and makes up now 7.5%.




BANKEBI DA FINANSEBI: “IN RESPECT OF LARI EXCHANGE RATE, EXTERNAL FACTORS ARE SUCH THAT NATIONAL CURRENCY HAS TO BE WITHIN 2.7-2.8”

September 26, 2019 - Archil Gachechiladze, director general of Sakartvelos Banki (Bank of Georgia), estimates that lari exchange rate has to be within 2.7-2.8 GEL/USD.

“We have no external shocks” today and “all fundamental reasons exist in order lari became stronger”, Gachechiladze declares.




FORBES GEORGIA: “ADB DECREASED FORECAST OF GEORGIA’S ECONOMIC GROWTH”

September 26, 2019 - Asian Development Bank (ADB) forecasts predicts Georgia’s economic growth at the level of 4.7% this year, the magazine reports. The article notes that this is by 0.3 percentage points lower in comparison with the previous forecast.




FORBES GEORGIA: ““TBC” EXPECTS GROWTH OF MONETARY POLICY RATE”

September 25, 2019 - TBC expects that at extraordinary meeting on September 25, National Bank of Georgia (NBG) will raise the monetary policy rate by 0.5 percentage points. Currently, the rate makes up 7%.




BANKEBI DA FINANSEBI: “OUR TODAY’S MESSAGE IS THAT WE DON’T LIKE TODAY’S RATE, WHICH CAUSES PROBLEM WITH INFLATION”

September 25, 2019 - “Our today’s message is that we don’t like today’s rate, which creates to us problems with inflation”, declares Archil Mestvirishvili, vice-president of the National Bank of Georgia (NBG).

Mestvirishvili indicates that “today, the national currency is depreciated more, than that external shock, with which we dealt” (reduction of tourism revenues because of Russia’s ban on air communication with Georgia).




REZONANSI: “ON WHOSE CONSCIENCE LIES TOTAL FAILURE OF EXCISE PLAN? – THE MONETARY FUND WASHED HANDS”

September 25, 2019 - After raise of excise on tobacco and other production, Georgia’s plan of excise tax revenues fails for the second year in a row, the newspaper reports. As the article notes, this year’s plan of 1.29 billion lari will be under-fulfilled, at least, by 175 million lari.




TABULA: “BECAUSE OF LARI DEVALUATION, FOREIGN DEBT INCREASES BY 43M LARI”

September 24, 2019 - Amendments to Georgia’s state budget-2019, which are submitted to the Parliament, indicate that cost of foreign debt service increases by 43 million lari, Tabula reports.

The article notes that the government names as the main reason of that fluctuations of exchange rate of national currency.




FORBES GEORGIA: “$16,378 MONTHLY – HOW MANY OFFICE RENT IN 2014-2018 COST TO “PRODUCE IN GEORGIA””

September 24, 2019 - Referring to State Audit Service, the magazine reports that Produce in Georgia, the Agency under Georgian Ministry of Economy and Sustainable Development, paid 1.44 million lari for rent of office in 2014-2018. The Agency rents the building of JSC Publishing House on Marjanishvili Street in Tbilisi.




BANKEBI DA FINANSEBI: “PEOPLE WITH CHRONIC DISEASES ANNUALLY SPEND 726M LARI FOR PURCHASE OF DRUGS”

September 23, 2019 - Akaki Zoidze, chairman of Georgian Parliament’s Committee of Healthcare and Social Problems, declares that case study of drugs’ availability will be completed in the next month and recommendations will be developed.

“We will have concrete recommendations regarding funds, which have to be allocated in the budget in order that this problem for the most vulnerable population groups was solved already this year”, Zoidze points.

energy, oil & gas

BANKEBI DA FINANSEBI: “WHETHER GAS TARIFF WILL RISE IN PRICE – COMMENT OF DAVID NARMANIA”

September 24, 2019 - David Narmania, nominated for the post of chairman of Georgian National Energy and Water Supply Regulating Commission, declares that at this stage, “there are no special expectations of any kind” in connection with rise of gas tariff.

The Commission considers now applications of gas-distributor companies (in connection with planned tariff revision), planning to finish the process until end of the year, the newspaper notes.

agriculture & food

BANKEBI DA FINANSEBI: “NEW “KNOW-HOW” OF SUBSIDIZING OF WINEGROWERS – STATE COMPANY “AKURA” JOINED PROCESS OF RTVELI”

September 24, 2019 - Grapes harvest in Kakheti, Georgia’s main winegrowing region, is expect this year to make up 220,000-240,000 t, the newspaper says, noting however that expectations in connection with wine realization are negative, as wine sales on Russian market are reduced.

Today, winemaking enterprises purchase 1 kg of grapes for 70 tetri.

tourism

FORBES GEORGIA: “IN AUGUST, BY 19,215 RUSSIAN AND BY 18,946 IRANIAN LESS VISITORS ARRIVED”

September 23, 2019 - Georgian National Tourism Administration reported that 1.36 million international travelers arrived to Georgia in August, increasing in number by 4.9% year-on-year.

Biggest reduction of travelers’ number is observed among Russians and Iranians, the magazine reports.