Economic Press Monitor June 23 - 29, 2019	Days:  15 22 29 06 13

economic & politics

FORBES GEORGIA: “ICC: WE CARRIED OUT MOBILIZATION OF RESOURCES TO RELIEF LOSSES FROM SANCTIONS”

June 28, 2019 - Georgian national committee of International Chamber of Commerce (ICC Georgia) declares that they held mobilization of resources for relief of losses, inflicted to Georgian business by Russian sanctions.

The working group is created, which will assist to Georgian National Tourism Administration in rapid response, as well as to Georgian winemakers in search of new markets, the organization reports.




NETGAZETI.GE: “EIGHTH DAY OF PROTEST: PROTESTERS GO TO IVANISHVILI’S PALACE”

June 28, 2019 - Late on June 27, participants of protest action in Tbilisi went to the palace of Bidzina Ivanishvili, billionaire chairman of ruling Georgian Dream party, Netgazeti.Ge reports. Protest actions in Tbilisi are daily held since June 20.




FORBES GEORGIA: “INSTEAD OF CHAIRMAN, THE COMPETITION AGENCY COULD BE MANAGED BY 5-MEMBER BOARD”

June 27, 2019 - The magazine reports that according to drafted amendments to Georgian law “On Competition”, executive body of Competition Agency of the country can become a board, comprising of 5 members, elected for 5-year term. Candidates for the board membership are presented to the Parliament by the Premier.




FORBES GEORGIA: “FEE FOR CONCENTRATION PERMISSION COULD BE ESTABLISHED FOR BUSINESS”

June 27, 2019 - The magazine reports that for receiving concentration permission from Georgian Competition Agency, fee could be established for business. According to the respective draft bill, cost of consideration of the request will make up 5,000 lari.




REZONANSI: “AT FIRST, THEY WILL FORBID WINE, THEN SALAD AND PARSLEY”

June 25, 2019 - Irakli Menagarishvili, Georgia’s former foreign minister (under president Eduard Shevardnadze), states that Russia declared economic war to Georgia and recently imposed ban for Russian tourists to visit Georgia will be followed also by other steps.

“Recall development of events in 2005-2007, they will try to carry out approximately an analog of that now as well”, Menagarishvili considers.




KVIRIS PALITRA: “WHAT PUTIN’S “AIR” BLOWS WILL BRING TO GEORGIA”

June 24, 2019 - The newspaper considers possible results of Russian president’s decision to suspend air traffic with Georgia.

Economic expert Soso Archvadze indicates that Georgian economy is still considerably tied to Russia and, respectively, is quite vulnerable.




TABULA: “UNDER RULING OF “DREAM”, DEPENDENCE OF ECONOMY ON RUSSIA INCREASED”

June 24, 2019 - Improvement of economic relations with Russia was one of the main promises of Georgian Dream, Tabula reminds. The article indicates that leaders of the ruling party “often mentioned the Russian market in a positive context”.




TABULA: “KHAZARADZE: I AM READY TO FINANCE 10 CHARTER FLIGHTS FOR UKRAINIAN TOURISTS”

June 24, 2019 - Mamuka Khazaradze, founder of Georgia’s largest TBC Bank, points that ban, imposed by Russia on air traffic with Georgia since July 8, “naturally, will affect a tourist season”.

“On behalf of TBC Holding, I express readiness to finance 10 charter flights of AirZena [Georgian Airways] for Ukrainian tourists”, Khazaradze posted on his Facebook.




REZONANSI: “CHRONICLES OF NEW ECONOMIC WAR – WHY KREMLIN FELL IN NEW ANTI-GEORGIAN HYSTERIA”

June 24, 2019 - Because of anti-Russian protest actions, held in Tbilisi since June 20, Russia declared economic war to Georgia, the newspaper says.

Russian president Putin decided on June 21 to forbade temporarily flights to Georgia to Russian airlines, while tour operators gave recommendation to refrain from sale of tours to Georgia, the article specifies.

macroeconomics & budget

FORBES GEORGIA: ““G&T” EXPECTS STRENGTHENING OF LARI EXCHANGE RATE TO THE MARK OF 2.6 FROM 2020”

June 26, 2019 - Georgian investment bank Galt&Taggart (G&T) does not expect sharp devaluation of lari against the background of Russian sanctions, the magazine reports. However, G&T notes that there will be a certain instability.




FORBES GEORGIA: “WHAT RUSSIAN SANCTIONS WILL BRING US? – FORECAST OF “GALT&TAGGART””

June 26, 2019 - By calculations of Georgian investment bank Galt&Taggart (G&T), today about 9.3% of Georgia’s GDP depend on Russia, the magazine reports. The calculation takes into account export, tourism, direct investments and remittances.




FORBES GEORGIA: “IN 7 YEARS, HEADS OF PARTNERSHIP FUND RECEIVED COMPENSATION OF 1.8M LARI”

June 25, 2019 - Remuneration of head of Georgian Partnership Fund exceeds salaries of Prime Minister, ministers and other officials, the magazine points.

During the period from 2013 to 2018, compensation of executive directors of the Fund had totaled to 1.78 million lari, the magazine reports.

companies

FORBES GEORGIA: “DIGITAL OPPORTUNITY OF REALTY”

June 26, 2019 - TBC Group, together with acquired online platform Allproperty.Ge (share – 90%), created a digital ecosystem of real estate, the magazine reports. The matter concerns website Livo.Ge, which beta version was launched on May 30.




FORBES GEORGIA: “EBRD SUPPORTS EXPANSION OF POULTRY FARM “CHIRINA” IN GEORGIA”

June 24, 2019 - EBRD allocates 4 million EUR to Georgian poultry-farming LLC Chirina, the magazine reports. Funds will be directed to expansion of production by 50%.

transport & communications

TABULA: “BECAUSE OF SMOKE IN CARS, MOVEMENT OF TRAINS IN THE SUBWAY WAS SUSPENDED FOR SHORT TIME, 1 PASSENGER FELT BAD”

June 27, 2019 - Tbilisi Transport Company reported that because of malfunction of one car, movement of entire Tbilisi subway was suspended on June 26 for 6 minutes.

Passengers were evacuated, while the affected train moved to the deadlock, one of passengers felt bad, the company said.

finances & banking

BANKEBI DA FINANSEBI: “REGULATION ON MORTGAGE LOANS IS SOFTENED – IN WHAT CASE YOU WILL TAKE CREDIT EASILY”

June 28, 2019 - Georgian Banks Association declares that banking system of the country has opportunity to ensure more effective assessment of borrowers’ income and solvency.

As the Association explains, by order of December 24, 2018, president of National Bank of Georgia allowed banks to conduct study of income of individuals by internal procedures.




FORBES GEORGIA: ““TBC BANK” MANAGED TO ATTRACT $425M DURING THE LAST 2 WEEKS”

June 28, 2019 - TBC Bank attracted $425 million for the last 2 weeks, the magazine reports.

On June 19, the bank placed Eurobonds on the Irish stock exchange (Euronext Dublin), and then on the Georgian Stock Exchange (yield rate – 5.7%).

agriculture & food

FORBES GEORGIA: “AVERAGE PRICE OF GEORGIAN WINE IN EUROPE IS $5, IN RUSSIA – $3 – WHERE GEORGIAN WINE IS EXPENSIVE”

June 27, 2019 - Average export price of Georgian wine is $3.1 per l, the magazine reports.

The article indicates that in spite of Russia’s share in total Georgia’s wine export of 63% (data of 5 months of this year), this country is not a leader in terms of cost.

tourism

REZONANSI: “ONLY A THIRD OF RUSSIANS CHANGED THEIR MIND ON VISITING GEORGIA”

June 26, 2019 - After announcement of sanctions on Georgia by Russia (ban on air traffic with Georgia since July), about a third (34%) of Russian tourists changed their mind on visiting Georgia, the newspaper reports with reference to poll, conducted by Russian online service Ostrovok.Ru. In total, 1,200 Russian tourists participated in the poll.




TABULA: ““SAKARTVELOS BANKI” ALLOCATES 1,000,000 LARI FOR ASSISTANCE TO TOURISM IN THE COUNTRY”

June 25, 2019 - Sakartvelos Banki (Bank of Georgia) allocates 1 million lari for development of tourism during a summer season, Tabula reports.

As the bank explains, this sum will be allocated in addition to investments of $150 million, which were made in tourism sector on the basis of agreements, concluded in 2018.




NETGAZETI.GE: “WHAT TOURIST SECTOR DEMANDS FROM THE STATE FOR RELIEF OF RUSSIAN EMBARGO”

June 25, 2019 - Shalva Alaverdashvili, head of Georgian Hotels and Restaurants Association, says that Georgian tourist sector expected in the current year to gain income of $700 million from the Russian tourists only.

Russia forbade air traffic with Georgia since July 8, because of which Alaverdashvili declares that Georgian tourism sector will try to diminish losses through joint work with the government.