Economic Press Monitor October 8 - 14, 2017	Days:  30 07 14 21 28

economic & politics

REZONANSI: “ALONG WITH LOCAL, FOREIGN GAMBLING SITES WILL BE RESTRICTED TOO”

October 12, 2017 - Georgian Finance Ministry says that after January 1, 2018, control of online casinos will be toughened. In particular, casinos will be obliged to allow to gamble only those users, who are registered by Revenue Service.




NETGAZETI.GE: “HANDOVER OF LAND TO IVANISHVILI’S COMPANIES TO BE PROTESTED IN COURT”

October 11, 2017 - Oppositional deputies of Tbilisi Sakrebulo (city council) declare that they will protest in court against handover of land to companies, connected with Bidzina Ivanishvili (billionaire ex-premier), the newspaper reports.

The meeting of Tbilisi Sakrebulo, which adopted the mentioned handover, “is illegitimate because of violation of multiple laws”, Sakrebulo member Marika Datukishvili declares and notes: “with indication of these violations we will move to court, we continue legal fight”.




FORBES GEORGIA: “RECOMMENDATIONS OF INVESTORS COUNCIL REGARDING LAND LAW”

October 10, 2017 - Investors Council submitted own recommendations regarding the organic law on land to Georgian government, the magazine reports.

As the article notes, most part of the Council members agree that ban on agricultural land ownership for foreigners will create obstacles in development of the sphere.




TABULA: “AMERICAN CHAMBER OF COMMERCE TO THE PREMIER: THE LAND MORATORIUM DAMAGES INVESTMENT CLIMATE”

October 10, 2017 - Michael Cowgill, president of American Chamber of Commerce in Georgia, declares: “The longer the moratorium [on sale of agricultural land to foreigners] will last, the more investment climate of the country will suffer”. As Tabula reports, Cowgill declared this at the meeting with Georgian government.




TABULA: “ELENE KHOSHTARIA: CONSTRUCTION OF POWER PLANT IS PLANNED ON TABORI MOUNTAIN”

October 10, 2017 - Elene Khoshtaria, candidate for Tbilisi Mayor’s office from European Georgia, says that by resolution of the government, construction of power plant for Bidzina Ivanishvili (billionaire ex-premier) is planned on Tabori Mountain nearby Tbilisi.

“For that end, 1.7 million taken out from our fellow citizens’ pockets have been spent in corruptive, direct contract, but not the tender”, Khoshtaria states.




NETGAZETI.GE: “RECREATIONAL ZONE IN MUKHIANI – KALADZE’S POLICY IN EDUCATION, CULTURE AND SPORTS”

October 10, 2017 - Kakha Kaladze, candidate for Tbilisi Mayor’s office from ruling Georgian Dream, promises to arrange recreational zone in Tbilisi’s settlement Mukhiani, on the territory of the former radio plant (unfinished).

According to Kaladze, the project named “Radio City” envisages arrangement by means of private investments of exhibition areas, cafes, swimming pools and other facilities.




KVIRIS PALITRA: “THEY TREAT THE COUNTRY AS A CORPORATION”

October 9, 2017 - Commenting on the expected results of the upcoming local elections, political scientist Gia Khukhashvili declares: “Nothing will change and sakrebulos [city councils] together with city halls will remain “money printing machine” for some”.

“Vicious system has been consolidated in the country, the mayor does not represents himself only, but also political force [behind him], respectively, he assumes many obligations not only concerning groups of interest, but also the party”, Khukhashvili declares and adds: “as a result, the city hall becomes the notary of clannish interests and so will be in future too”.

macroeconomics & budget

FORBES GEORGIA: “ACCORDING TO INCOME PER CAPITA, GEORGIA IS ON THE 107^TH PLACE IN THE WORLD”

October 13, 2017 - IMF reported that Georgia’s average income per capita, calculated in 2017 according to purchasing power parity (PPP), makes up $10,644.

According to this indicator, Georgia is on the 107^th place among 190 countries, as it was in 2016 too, the magazine reports.




FORBES GEORGIA: ““MOODY’S”: REFORMS FACILITATE OVERCOMING OF CREDIT WEAKNESSES IN GEORGIA”

October 13, 2017 - Moody’s considers vulnerability toward external shocks as the main danger to Georgia’s economic and financial stability. The banking sector and possible external shock still restrict rating of the country, the agency specifies.




REZONANSI: “NEXT YEAR, CIGARETTES NOT TO RISE IN PRICE”

October 12, 2017 - If revenues from excise tax were planned in 2017 at 1.63 billion lari, plan for 2018 makes up 1.45 million lari. Next year, growth of excise tax rate is not envisaged, the newspaper concludes.




REZONANSI: “BECAUSE OF REFORM, PENSIONERS ARE LEFT WITH 180 LARI”

October 11, 2017 - In 2018, pension reform will begin, while the budget does not envisage growth of social pension in next year, the newspaper reports.

Minister of Economy and Sustainable Development Giorgi Gakharia said that “public consideration of pension reform is already begun in certain form”.

energy, oil & gas

FORBES GEORGIA: ““ONE OF THE BIGGEST INDICATORS IN THE WORLD” – THE WIND STATION MASTERED 53% OF ENERGY”

October 11, 2017 - From the date of operation commencing until end of September, Kartli wind power plant has generated over 80 million kWh, the magazine reports.

As the article notes, the station’s rate of wind energy conversion during the current year makes up 53%.

companies

TABULA: “PENALTY FOR VIOLATION OF INVESTMENT CONDITIONS ON LAND, APPROVED FOR 1 LARI, MAKES UP 100 LARI”

October 12, 2017 - The richest citizen of Georgia, ex-premier Bidzina Ivanishvili has legalized for 1 lari the land site of 1,900 square m in the very center of Tbilisi, Tabula says. In exchange, Ivanishvili’s company Tbilisi City has to invest 1 million lari in arrangement of parking for 30 places at least.




FORBES GEORGIA: “CARPE DIEM – SUCCESS STORY OF “KULA””

October 9, 2017 - About 200 kinds of juice, jam, salads and souses are produced today under brand of Georgian company Kula, founded in 2009, the magazine reports.

The company purchases raw materials on the local market only, processing 7,000 t of fruits and vegetables annually.




FORBES GEORGIA: “LADO GURGENIDZE BECAME SUPERVISORY COUNCIL CHAIRMAN AT “4FINANCE””

October 9, 2017 - Lado Gurgenidze became chairman of supervisory council at 4Finance, European company of online lenders, the magazine reports.

As the article notes, Gurgenidze joined council of the company in summer, acquainting until now with international practice of management.

transport & communications

LIBERALI: “WHEN OBLIGATORY TESTING OF CARS WILL BE ENACTED AND WHAT DOES IT ENVISAGE”

October 11, 2017 - After January 1, 2018, technical examination of cars will become obligatory in Georgia.

As chief of qualification center at Land Transport Agency Elizbar Darchiashvili says, cost of technical examination is not defined so far and is not set by law.

finances & banking

REZONANSI: “POPULATION AND BUSINESS QUICKLY LOSE OWN PROPERTY”

October 13, 2017 - Borrowers’ property, which appeared seized by commercial banks, amounted in 2014 to 163 million lari, while reached 193 million lari in the 2^nd quarter of this year, the newspaper reports.

According to banking expert Irakli Berdzenadze, decline of lari exchange rate made businessmen and private individuals insolvent.




BANKEBI DA FINANSEBI: “DEPOSIT INSURANCE SYSTEM WILL PROMOTE FINANCIAL STABILITY”

October 12, 2017 - Deposit insurance system has to start operation after January 1, 2018. By the government decree, Deposit Insurance Agency is created, which will be headed by Otar Dzidzikashvili, former chief of Pension Reform Service.

agriculture & food

EUGEORGIA.INFO: “IN DIRECTION OF PHYTOSANITARY, GEORGIA HAS TO ENVISAGE UNTIL END OF THE YEAR THREE DIRECTIVES OF THE EU”

October 13, 2017 - In direction of plants’ protection, Georgia has to envisage 10 Directives of the EU in 2015-2017, Eugeorgia.Info reports.

Lasha Inauri, head of department of European integration at the Agriculture Ministry, says that “in direction of plants’ protection, we have to carry out rapprochement with only 3 Directives in 2017, meanwhile none of them is fulfilled and work on the respective legislation is underway”.