Economic Press Monitor February 23 - 29, 2020	Days:  15 22 29 07 14

economic & politics

TABULA: “THE GOVERNMENT CONSIDERS POSSIBILITY OF TEMPORARY VISA REGIME WITH THE COUNTRIES OF HIGH RISK”

February 28, 2020 - According to the resolution, issued by the Georgian government on February 26, the Foreign Ministry of the country is assigned to consider the possibility of temporary visa regime with the countries, recognized as high-risk zones in terms of coronavirus spread, Tabula reports.

The Ministry is charged also to inform the government on Georgian citizens, who are in the high risk countries, as well as in case of the coronavirus diagnosis of Georgian citizens in other countries.




BANKEBI DA FINANSEBI: “IN GEORGIA, ACTIVITY OF INVESTMENT FUNDS WILL NOT BE SUBJECTED TO DOUBLE TAXATION”

February 26, 2020 - Ekaterina Mikabadze, Georgia’s First Deputy Minister of Economy and Sustainable Development, points that tax regime, which acted in the country regarding investment funds, “contained certain shortcomings, was hampering” to their activity. In particular, there was a problem of double taxation, she specifies.




REZONANSI: “IVANE MACHAVARIANI EXPLAINS, WHY HE DID NOT COME TO THE MEETING OF THE PARLIAMENT’S COMMITTEE ON BRANCH ECONOMY”

February 25, 2020 - Georgia’s Finance Minister Ivane Machavariani declares that a few days ago, in a format of “hour of the minister”, he already spoke in details about topics, in connection with which he was invited to the meeting of the Parliament’s Committee on Branch Economy and Economic Policy.

Then MPs “practically left the hall, were not even present and did not ask any questions”, the Minister points.




REZONANSI: “SCHEME OF HOW OVER 100M WERE STOLEN FROM THE BUDGET – WHO WILL BE SACRIFICED TO “THEFT OF THE CENTURY””

February 25, 2020 - Several months ago, Georgian State Security Service detained 62 businessmen, accusing them of misappropriation of the sum from 100 to 270 million lari, while criminal proceedings are launched against more 102 persons, the newspaper reports. The matter concerns scheme of forged offset of VAT.

macroeconomics & budget

BANKEBI DA FINANSEBI: “MACHAVARIANI – ACCORDING TO OUR AND NATIONAL BANK’ ANALYSIS, LARI APPROACHED THE BALANCE MARK”

February 27, 2020 - Georgia’s Finance Minister Ivane Machavariani declares that “According to our and National Bank’s analysis, lari approached today a balance mark”. “This is reality of today, nobody has to forecast [situation] in a month or three months, and no such forecasts are made”, he stresses.




TABULA: “EACH GARBAGE BUNKER ON CHAVCHAVADZE COSTS THE CITY HALL 31,700”

February 26, 2020 - According to tender documentation, Tbilisi City Hall plans to pay 1.59 million lari for underground garbage containers, which will be installed on Chavchavadze Avenue in Tbilisi, Tabula reports. The sum is planned to spend on 50 containers in total.




REZONANSI: “CHAOS: TURNOVER OF GAMBLING BUSINESS GROWS, WHILE TAXES REDUCED”

February 26, 2020 - In 2019, Georgia’s state budget received 128.4 million lari as duties from gambling business, the newspaper reports. The article notes that this volume is by 8.1 million lari less in comparison with 2018.




BANKEBI DA FINANSEBI: “NOBODY SAID THAT CIGARETTE PRICE HAS TO BECOME 10 AND 15 LARI TOMORROW OR THE DAY AFTER TOMORROW – LASHA KHUTSISHVILI”

February 24, 2020 - “Nobody said that price of cigarettes has to become 10 and 15 lari already tomorrow or the day after tomorrow”, Georgia’s Deputy Finance Minister Lasha Khutsishvili posited in social network. “It was said only that Georgia has international obligations in connection with rate of cigarettes excise”, he noted.

energy, oil & gas

FORBES GEORGIA: “ENERGOREFORMS 2020”

February 25, 2020 - In the article, published by the magazine, chairman of the National commission on regulation of power and water supply David Narmania points that 2020 is the first year of reforming, which covers full modernization of the electric power market. The main part of reforming of the gas market will start in 2021, he says.

companies

BANKEBI DA FINANSEBI: ““TBC” IS A SYSTEM BANK AND HAS VERY IMPORTANT ROLE IN MACROECONOMIC STABILITY OF THE COUNTRY – GAKHARIA”

February 28, 2020 - “TBC is a system bank”, Georgia’s Prime Minister Giorgi Gakharia declared at the presentation of annual report of the bank, pointing that “in macroeconomic stability of the country, TBC plays very important role”.

According to the Premier, “the state can expect bigger social responsibility from business, including the banking sector, we can be more interested in that not only the banking system, but also the financial sector in general was more developed”.




BANKEBI DA FINANSEBI: ““WIZZ AIR” AIRLINE CUTS FREQUENCY OF FLIGHTS FROM KUTAISI IN THE DIRECTION OF ITALY”

February 28, 2020 - Hungarian low-coster Wizz Air cuts frequency of flights from Kutaisi to Italy, the newspaper reports, referring to Georgian Airports Association.

Wizz Air conducted 4 flights from Kutaisi to Milan a week, but from March 12 to April 2, only one weekly flight will be made (on Fridays).




FORBES GEORGIA: “PREPARATION FOR THE NEW JUMP”

February 26, 2020 - Georgian Reconstruction and Development Company (GRDC), founded in 2003, is estimated currently at 80 million, the magazine reports.

In the first 3 years, national economy received $15 million from purchase of assets by the company, while $100 million – as investments, the article notes.




FORBES GEORGIA: “SCIENTIFIC RATING OF GEORGIAN HIGHER EDUCATION INSTITUTIONS”

February 24, 2020 - In terms of total scientific activity, Tbilisi State University (TSU) is a leader education institution in Georgia, says author of the article, analyst Alexander Tarkhan-Mouravi.

The rating applies score of 100 points to the leader (TSU), while estimates performance of the others in relation to the leader’s score.

transport & communications

BANKEBI DA FINANSEBI: “MACHAVARIANI – PRIVATIZATION OF RAILWAY IS POSSIBLE AND THE GOVERNMENT HAS TO THINK IN THIS DIRECTION”

February 27, 2020 - Georgia’s Finance Minister Ivane Machavariani declares that privatization of Georgian Railway “is not only possible, but also we have to think in this direction”.

“There are best examples of the EU, when the soil and core infrastructure remain in hands of the state, while transportations, including “trading”, are commercialized”, the Minister explains.

finances & banking

REZONANSI: “NATIONAL BANK TAKES PROMISE BACK?”

February 27, 2020 - While commenting on situation with retail crediting, Georgian Banking Association’s president Alexander Dzneladze declares that “Issue of regulations is at the stage of negotiations” with National Bank of Georgia (NBG). “We have no final answers yet on certain questions”, he notes.




BANKEBI DA FINANSEBI: “ONE YEAR OF MICROFINANCIAL ORGANIZATIONS – WHAT CHANGED ON THE MARKET FOLLOWING NEW REGULATIONS”

February 24, 2020 - Banking regulation, enacted in 2019, had essential impact on Georgian market of microfinancial organizations and online credits, as issuance of credit without confirmation of borrower’s income is forbidden and upper limit is set for interest rates, the newspaper says.

The article indicates that information on closing of different microfinancial organizations was constantly reported during the whole year.




FORBES GEORGIA: “EXCESSIVE CREDITING OF HOUSEHOLDS AND RELATED RISKS”

February 24, 2020 - For the last 2 years, credit risk of Georgian households, being measured by share of idle credits in total portfolio, has decreasing tendency, notes author of the article (Alexander Ergeshidze, doctor of economy at Tbilisi State University).

The low risk can be explained with previous years’ high rate of credits growth and existence of buffers, he declares.

agriculture & food

REZONANSI: “RESERVE EXISTS – NO DEFICIENCY OF FOOD WILL ARISE IN GEORGIA”

February 28, 2020 - After first case of coronavirus, detected in Georgia on February 26, part of the population start making stock of food, feverishly purchasing products in supermarkets. Panic arose in all parts of Tbilisi, some food products disappeared from shop shelves, the newspaper reports.