Economic Press Monitor February 5 - 11, 2017	Days:  28 04 11 18 25

economic & politics

NETGAZETI.GE: “FAILED MEMORANDUM, WHICH ENVISAGED CONSTRUCTION OF NEW BUILDING FOR “PUBLIC BROADCASTER””

February 8, 2017 - In 2015, there was plan, envisaging construction of new building for Public Broadcaster and its equipment with modern technologies, the newspaper reports. The investor, Economy Ministry and Public Broadcaster even signed the memorandum for that end, but the idea failed then, the article states.




TABULA: “MINISTERS HAVE HIGHER REMUNERATION THAN THE PRIME MINISTER”

February 8, 2017 - According to income declaration of the Prime Minister Giorgi Kvirikashvili, his wage in 2016 amounted to 51,369 lari. As the article states, the Cabinet members were paid higher remuneration than the head of the Government.




TABULA: ““PUBLIC BROADCASTER” PLANS TO SAVE 15 MILLION BY THE STAFF OPTIMIZATION”

February 8, 2017 - According to the action plan of Public Broadcaster, new management of the channel plans to save 15 million lari by the staff optimization.

Vasil Maglaperidze, newly appointed as director general of the channel, declared that except news programs, all other programs of the Public Broadcaster, the Second Channel and the First Radio will be closed.




REZONANSI: “GEORGIA MAY CREATE PROBLEMS TO RUSSIA IN WTO”

February 6, 2017 - The newspaper reminds that under Georgia-Russia agreement of 2011, neutral observers should be installed on Psou river (Abkhazian section of Georgia-Russia birder) and at Roki tunnel (Tskhinvali section of the border), who will monitor cargo traffic across these border sections.

Actually, this is the only agreement, officially signed by Moscow, by which Russia recognizes Georgia’s territorial integrity, the newspaper points, noting that Georgian side had declared as far back as last February that they have all details ready and are awaiting for final respond from Russia.

macroeconomics & budget

FORBES GEORGIA: “WHAT DOES GEORGIAN BUREAUCRACY WEIGH?”

February 10, 2017 - According to last census (2014), Georgia’s population makes up 3.7 million people, of which 1.7 million is employed. At that, 84.6% is employed in private sector, while 15.4% – in public sector.

conflict and court

NETGAZETI.GE: “NATSVLISHVILI: THERE IS A CHANCE TO STICK “RUSTAVI AZOT” WORKERS TO THEIR JOB”

February 9, 2017 - Beka Natsvlishvili, MP from the Parliament majority, declares that there is an opportunity to hold negotiations with administration of Rustavi Azot (Rustavi chemical plant) and to stick workers, released from the plant, to their jobs.

“It is possible to achieve on the base of consensus the results, acceptable for all”, Natsvlishvili declared.




TABULA: ““FRESCO” DOES NOT AGREE WITH ALLEGATIONS AND SPEAKS ABOUT OWN EMPLOYEES’ ADVANTAGES”

February 9, 2017 - Supermarket chain Fresco does not agree with accusations, spread in behalf of part of its employees, the article reports.

Accusations against Fresco concerned overtime work, salary reduction, “artificial cash shortage”, improper reimbursement in New Year period and pressure on employees.




TABULA: ““R2”: BROTHER OF JUDGE, WHO CONSIDERS OUR CASE, RECEIVED 1M LARI FROM THE BUDGET”

February 6, 2017 - According to TV company Rustavi-2, brother of Nata Nazgaidze, who chairs the board, considering the case of the TV company at Appeals Court, received 1 million lari from the budget, the magazine reports.

Particularly, Tbilisi City Hall has registered on the judge’s family a site of 5,000 square m in Tbilisi center, which is estimated at 515,000 lari.

companies

NETGAZETI.GE: “LAND PLOT OF 13,640 SQUARE M ON GREEN CAPE IS PURCHASED BY THE COMPANY, PRESUMABLY ASSOCIATED WITH BIDZINA IVANISHVILI”

February 9, 2017 - The newspaper reports that buildings of former agrarian university and its dormitory, located on Green Cape in Batumi, were acquired through termed auction by company Business Development.

LLC Business Development was founded in June 2015, its single owner is LLC Nodia, Urumashvili and Partners.




BANKEBI DA FINANSEBI: “HOTEL OF ARAB BRAND “LA VERDA” TO BE BUILT ON THE PLACE OF HOTEL “SAKARTVELO””

February 9, 2017 - Referring to TV program Business Contract (TV channel Pirveli), the newspaper reports that hotel of Arab brand La Verda will be built on the place of Tbilisi hotel Sakartvelo (Melikishvili Avenue).

The newspaper mentioned that building of Sakartvelo was sold by its owner David Kodua, who does not disclose cost of the deal.

transport & communications

REZONANSI: “THERE IS A BIG CRISIS IN “GEORGIAN RAILWAY””

February 7, 2017 - From 2013, cargo turnover of Georgian Railway is declining permanently, the newspaper states. Over the past 4 years, the turnover has declined by almost 50%, the article says.

international cooperation

EUGEORGIA.INFO: “DIRECT EFFECTS OF DCFTA ARE REFLECTED IN GROWTH OF GEORGIAN WINE EXPORT TO EU COUNTRIES”

February 10, 2017 - Already more than 2 years have passed after enactment of Deep and Comprehensive Free Trade Area Agreement between Georgia and the EU.

DCFTA did not had direct financial effects on exporters of those products, which had enjoyed GSP+ preferential tariffs, the article states.

ecology & health

BANKEBI DA FINANSEBI: “THE TOP 16 COUNTRIES WITH THE BEST HEALTHCARE SYSTEMS”

February 8, 2017 - The newspaper reports that London-based The Legatum Institute has published its 10^th annual research, reflecting global wellbeing index.

Among 149 countries of that index, Georgia holds the 84^th place, while the leader of the list is Luxemburg, where average life expectancy is 82 years.

finances & banking

THE FINANCIAL: “HOW TO DE-DOLLARIZE IN A SMART WAY: LESSONS FROM THE GEORGIAN AND FOREIGN EXPERIENCES”

February 7, 2017 - As a transition economy, Georgia is characterized by high levels of dollarization, so recent waves of lari depreciation have prompted Georgian authorities to step up their efforts to achieve sustained de-dollarization of the economy, the newspaper states. To do this, the government, together with the National Bank of Georgia, has drafted the so-called “Larization Plan.”

Despite wide recognition of measures in the current Larization Plan as effective tools against high dollarization, there are questions related to the two most controversial points in the de-dollarization strategy: voluntary conversion of mortgage loans, taken in foreign currency, to national currency and mandatory issuance of small loans in national currency only.




REZONANSI: “LOANS’ CONVERSION PROGRAM FAILED!”

February 7, 2017 - Population, burdened with credits’ do not trust to loan conversion project, the newspaper states.

Irakli Berdzenadze, head of company Private Banker, declares that since the loan conversion program has been launched and people applied to banks, borrowers realized that this would only raise cost of their loan liability.




KVIRIS PALITRA: “WE HAVE TO REMEMBER THAT WE LIVE IN ZONE OF 7-MAGNITUDE EARTHQUAKES”

February 6, 2017 - Devi Khechinashvili, chairman of board at Georgian Insurance Companies Association, considers that several insurance products should become mandatory. “The sector is being developed gradually even without the government’s interference and initiatives, though at very slow pace”, he points, noting: “If we look through the figures, there is actually stagnation on insurance market”.

agriculture & food

EUGEORGIA.INFO: “BRITISH JOURNALIST: GOLDEN FLEECE MYTH WILL FACILITATE POPULARIZATION OF GEORGIAN WOOL”

February 10, 2017 - Experts estimate that Georgia is capable to produce 2,000 t of wool yearly. As the article says, after Great Britain, other countries have expressed interest to Georgian wool as well.