Economic Press Monitor September 2 - 8, 2018	Days:  11 18 08 15 22

economic & politics

BANKEBI DA FINANSEBI: “PRESENTATION OF NEW CUSTOMS CODE WILL BE HELD IN NEXT WEEK”

September 7, 2018 - Georgia’s Prime Minister Mamuka Bakhtadze declared that presentation of new Customs Code will be held in next week. “Existing Customs Code does not answer challenges, which we face today”, he said at the news briefing on September 6.




REZONANSI: “KOBULIA IS INTERESTED NOR IN WORK, NEITHER IN RESPONSIBILITY”

September 7, 2018 - Society apprehended Minister of Economy and Sustainable Development Giorgi Kobulia’s 3 holidays during 2 months very sharply, the newspaper says.

However, Prime Minister Mamuka Bakhtadze considers that Kobulia’s Ministry operates as it has to do, the article points.

macroeconomics & budget

TABULA: “THE CITY HALL STARTED ACCEPTANCE OF SOCIALLY UNPROTECTED STUDENTS’ APPLICATIONS FOR FINANCING OF STUDY”

September 6, 2018 - Within subprogram of assistance to socially unprotected and successful students, Tbilisi City Hall started acceptance of applications for tuition subsidizing in autumn semester, Tabula reports. Applications are accepted through November 30.




REZONANSI: “FOR THE LAST MONTHS, CONDITION OF THE PEOPLE INSTEAD OF IMPROVEMENT HAS WORSENED”

September 6, 2018 - In its time, resignation of Giorgi Kvirikashvili from Prime Minister’s post was reasoned by growth of poverty indicator and excessive indebtedness, but one may say that since that the situation has worsened even more, the newspaper says.

Its truth that fight against excessive indebtedness is begun (restriction on credit issuing by banks), however situation is nothing better in this term either – army of borrowers had moved from banks to instant crediting companies and microfinancial organizations, the article specifies.




TABULA: “THE CITY HALL PLANS TO REPAIR THE COMMUNIST-ERA MONUMENT “HUMAN AND THE SUN” FOR 406,000 LARI”

September 5, 2018 - Tbilisi City Hall plans restoration of Communist-era monument “Human and the Sun” (1973), located near Tbilisi airport, Tabula reports.

Cost of the project makes up 406,529 lari.




REZONANSI: “LARI IS EXPECTED BY VERY DIFFICULT AUTUMN”

September 4, 2018 - Current exchange rate makes up 2.57 GEL/USD, the newspaper says, pointing that this rate is fixed on the background of the US dollar weakening and increase of foreign currency influx to Georgia.

Economist Nika Shengelia forecasts that “Until September 10-12, lari will be stable against dollar or can become stronger a little”.

energy, oil & gas

REZONANSI: “BAD FORECAST: FUEL WILL INCREASE IN PRICE UP TO 2.60 LARI”

September 6, 2018 - In several days, fuel will increase in price again, because of global price growth on oil and oil-products, the newspaper states.

The article notes that price rise at large filling stations of Georgia is not started yet, because of possibly not exhausted old stocks.

companies

FORBES GEORGIA: “INTERVIEW WITH EXECUTIVE DIRECTOR OF “ALLIANCE HOLDING” AYET KUKAVA”

September 4, 2018 - Ayet Kukava, executive director of Alliance Holding, reports that Georgia will host on September 12-15 a forum, part in which will be taken by over 50 companies from 47 countries, which are members of Globalscope (the chain, focused on companies’ merge and acquisition).

The chain unites currently 55 companies, including the Georgian investment company Alliance Group Capital.

transport & communications

BANKEBI DA FINANSEBI: “TARIFF FOR RAILWAY TRANSPORTATION FROM GEORGIA IN THE DIRECTION OF ARMENIA WAS HALVED”

September 5, 2018 - Since September 1, tariff for railway transportation from Georgia to Armenia was halved, the newspaper reports. The matter concerns transportations on the Poti-Yerevan route.




REZONANSI: “SINCE SEPTEMBER, MOBILE CALLS AND INTERNET WILL RISE IN PRICE”

September 4, 2018 - National Communication Commission discovered that Georgian mobile operators Geocell, MagtiCom and VEON (Beeline brand) subsidize various tariffs, offered to subscribers, the newspaper reports.

Accordingly, tariff offers will significantly change since September and mobile calls and Internet will rise in price for very many subscribers, the article points.

international cooperation

BANKEBI DA FINANSEBI: “FRANCE WILL TRY TO CONSIDER POSSIBILITY OF LABOR QUOTAS FOR GEORGIA”

September 6, 2018 - French ambassador in Georgia Pascal Meunier points that German federal chancellor Angela Merkel during her visit to Georgia spoke about opportunities of professional education of youth and creation of jobs for them. “Certainly, we consider this program interesting and France will try to consider this possibility”, he declares.

finances & banking

REZONANSI: “ANONYMOUS “BLACK LISTS” WILL APPEAR IN GEORGIA”

September 7, 2018 - Regulation of National Bank of Georgia (NBG) retains to credit institutions an opportunity of checking borrowers’ credit history, that means that so-called “black lists” are preserved and change only name, the newspaper says.

As credit bureau CreditInfo Georgia specifies, the field is abandoned, where it was specified “negative” credit in case of delay of payments.




TABULA: “MAXIMUM INTEREST RATE FOR CREDITS DECREASED TO 50% – WHAT THIS CHANGE WILL CAUSE?”

September 4, 2018 - Since September 1, issuance of credits with annual effective interest rate of over 50% is forbidden. Respective amendments to Civil Code were initiated by Prime Minister Mamuka Bakhtadze, Tabula specifies.




REZONANSI: “SINCE SEPTEMBER “CREDIT HUNGER” WILL BEGIN”

September 3, 2018 - National Bank of Georgia reported about reduction of overdue credits by 1.6 million lari. The volume makes up now 382.1 million lari, or 1.6% of commercial banks’ total loan portfolio.




BANKEBI DA FINANSEBI: “FROM TODAY, TERM “BLACK LIST” IS CANCELLED – RULE OF MAINTAINING CUSTOMERS’ CREDIT HISTORY CHANGES”

September 3, 2018 - Since September 1, rule of customers’ credit history maintaining changes, the newspaper reports.

In particular, the term “black list” is cancelled and negative credit status is not given to customer in case of overdue credit.




BANKEBI DA FINANSEBI: “MAXIMUM SIZE OF PENALTY, CHARGED ON OVERDUE CREDITS, IS ESTABLISHED”

September 3, 2018 - Since September 1, the size of charged interest, forfeit and other expenses is limited in case of overdue credits, the newspaper reports. In particular, the size is limited with 1.5-fold volume of to-be-paid sum.

construction

REZONANSI: “NOT A SINGLE INVESTOR BECOME INTERESTED IN “KHRUSHOVKAS””

September 5, 2018 - The competition, announced by Tbilisi City Hall on replacement of so-called “khrushovkas” (Soviet-time 5-storey apartment blocks), came to the end on August 15, but no applications were submitted. The City Hall plans to announce bidding anew, the newspaper reports.