Economic Press Monitor August 5 - 11, 2018	Days:  28 04 11 18 08

economic & politics

TABULA: “THE GOVERNMENT CANNOT NAME THE SUM, WHICH POPULATION WILL RECEIVE AS A RESULT OF PENSION REFORM”

August 9, 2018 - On January 1, 2019, Georgian government plans to launch partially obligatory accumulative pension reform.

The reform envisages shift of burden of pension provision from the budget to citizens and refers to quite extended period – 40 years and more, Tabula specifies.




FORBES GEORGIA: “ON THE GLOBAL PEACE INDEX, GEORGIA IS ON THE 102^ND PLACE IN THE WORLD”

August 8, 2018 - According to the Global Peace Index of 2018, by which Institute for Economics and Peace ranks 163 countries of the world according to their peacefulness, Georgia is on the 102^nd place, the magazine reports. The article notes that in comparison with previous year, the country’s ranking worsened by 4 positions.

macroeconomics & budget

FORBES GEORGIA: “BREAD AND PUBLIC RELATIONS”

August 10, 2018 - One can often hear from authorities or their supporters that ruling force “limps” in public relations, because of what a part of the made job remains unknown to the population, the magazine writes. However, in fact, the reality is absolutely different, the article states with reference to the last research of TI Georgia (Georgian branch of Transparency International).




REZONANSI: “SOCIAL WELFARE WILL BE MAINTAINED FOR SALARY UP TO 1,000 LARI?”

August 7, 2018 - The Minister of Economy and Sustainable Development Giorgi Kobulia has drafted amendments, which maintain social assistance to persons, whose salaries does not exceed 1,000 lari, the newspaper reports. The draft is explained by refusal of social assistance beneficiaries to work because of fear to lose the assistance.




REZONANSI: “MIDDLE CLASS IN GEORGIA DISAPPEARED AT ALL”

August 6, 2018 - In Georgia, middle class does not exceed 7%, the poor make up 32%, moderately poor – 37% and vulnerable groups – 24%, the newspaper reports, referring to calculations according to the World Bank (WB) methodology.

The WB recognizes as the poor the person, whose consumption, envisaging purchasing power, makes up about $1.9.

companies

BANKEBI DA FINANSEBI: “TEMUR CHKONIA LOOKS FOR WORKERS FOR NEW PLANT OF “COCA COLA””

August 9, 2018 - Coca-Cola Bottlers Georgia will increase productivity and will continue production process from the new plant, the newspaper reports with reference to radio Komersanti.

Temur Chkonia, owner of the company, says that the new enterprise will need engineers, mechanics, sales managers.




BANKEBI DA FINANSEBI: “ALONG WITH ENVIRONMENTAL PROJECT, “RMG” WORKS ALSO ON THE ENTERPRISE RE-EQUIPMENT AND INTRODUCTION OF MODERN TECHNOLOGIES”

August 9, 2018 - There passed already several months since RMG company got concrete remarks from the Ministry of Environmental Protection and Agriculture, the newspaper points. The article specifies that the matter concerns measures on suppression of pollution of soil and Kazretula River.

transport & communications

BANKEBI DA FINANSEBI: “CONSTRUCTION OF VASHLIJVARI OVERPASS BEGINS”

August 9, 2018 - In Tbilisi, on crossing of Marshal Gelovani Avenue and Sarajishvili Street, works started on arrangement of two-level hub. Winner of the tender, which the City Hall announced on construction of the overpass, became company NCC.




KVIRIS PALITRA: “IS “SMOKE” OF CARS LEGALIZED TOO?”

August 6, 2018 - In spite of enactment of obligatory periodic checkup of cars since January 1, there are many vehicles running on roads of the country, which exhausts wraps everything in black smoke, the newspaper says.

Vazha Iordanashvili, chairman of Association of Vehicles Inspection Bodies, explains that “Upon enactment of technical inspection reform, the government chose to some extent a loyal approach and lowered from the point of view of technical parameters the standards, accepted in the world”.

ecology & health

TABULA: “IN 2017, CONSUMPTION OF NONFILTER CIGARETTES DOUBLED, IN 2018 – GREW BY 20%”

August 8, 2018 - In the first half of this year, 40 million excise stamps were issued for nonfilter cigarettes that by 20% exceeds indicator of the same period of 2017, Tabula reports. The article indicates that if in 2015, excise stamps were issued for 25.6 million packs of nonfilter cigarettes, then this number made up already 79 million in 2017.

finances & banking

FORBES GEORGIA: “HOW STABLE GEORGIAN BANKING SECTOR IS?”

August 10, 2018 - Upon consideration of major indicators and tendencies of financial stability, one can conclude that Georgian banking sector is quite stable, the magazine states. At that, level of stability improves, the article points.




FORBES GEORGIA: “AGAINST THE EXCESSIVE INDEBTEDNESS”

August 10, 2018 - Murtaz Kikoria, vice-president of National Bank of Georgia, discusses in an interview with the magazine the problem of excessive indebtedness and regulation, planned in this term.

As Kikoria points, talks about regulation, in particular, about responsible crediting, “have started exactly began then, when we saw big discrepancy between rate of economic growth and rate of retail crediting growth”.




BANKEBI DA FINANSEBI: “IN 6 MONTHS, COMMERCIAL BANKS GOT 38.7M LARI FROM THE POPULATION IN THE FORM OF PENALTIES”

August 7, 2018 - In 6 months of this year, Georgian commercial banks gained income of 38.8 million lari from fines and penalties on issued credits, the newspaper reports.

At that, TBC Bank accounts for the largest sum – 13.67 million lari.




BANKEBI DA FINANSEBI: “UPON HIGH PACE OF RETAIL CREDITING, GROWTH OF CONSUMER LOAN REDUCES GDP GROWTH THAT INCREASES RISK EVEN MORE”

August 6, 2018 - Giorgi Tsutskiridze, executive director of Georgian Banks Association, points that banking market concentration in Georgia is much higher, than in the countries of Central and Eastern Europe. Today, high concentration of the market is the fact and its decrease has to be achieved by purely market tools, he declares.

agriculture & food

REZONANSI: “FLOUR SUDDENLY ROSE IN PRICE, BREAD PRODUCERS FACE BIG HEADACHE”

August 7, 2018 - During the last week, flour price in Georgia increased by 1 lari (per sack). The GMO analysis, being free until recent, became paid by decision of the government, and makes up 250 lari now, the newspaper reports.

construction

BANKEBI DA FINANSEBI: “LOCAL CEMENT PRODUCERS APPLIED TO PRIME MINISTER WITH REQUEST OF THE MARKET PROTECTION”

August 8, 2018 - Local producers of cement released the extraordinary address to Prime Minister, Ministers of Economy and Finance, in which they are speaking about problem situation on the market and ways of its overcome, the newspaper reports.

Up to 15 companies declare that cement import from neighboring countries grows in such scales that in prospect, production of cement in Georgia will lose meaning.




REZONANSI: “BIG CHAOS ON CONSTRUCTION MARKET”

August 7, 2018 - Irakli Rostomashvili, chairman of Developers Association, speaks about dumping prices of cement, delivered from Iran, and notes that local production already faces problems in this regard. He considers that the problem requires control.