Economic Press Monitor July 16 - 22, 2017	Days:  08 15 22 29 05

macroeconomics & budget

BANKEBI DA FINANSEBI: “WHY IT WAS DECIDED TO SUPPLY GEORGIAN ARMY WITH IMPORTED MEAT INSTEAD OF LOCAL ONE?”

July 21, 2017 - In this month, tender on supply of military units, located in Eastern Georgia, with beef was won by LLC Ukhvi, which plans delivery of meat from Ukraine, the newspaper reports. Cost of the tender amounted to 1.64 million lari.




FORBES GEORGIA: “THE WORLD BANK NAMES CHALLENGES OF UNIVERSAL HEALTHCARE PROGRAM”

July 18, 2017 - In respect of affordability of healthcare, Georgia made significant progress after launch of universal healthcare program, the World Bank (WB) says in its report “Public Expenditures Review” on Georgia.

“In recent years, expenses on universal healthcare program exceed its budget that causes concern in connection with sustainability of this program”, the report indicates.




KVIRIS PALITRA: “IN 2018, INFLATION WILL DECREASE AND PRICES WILL STABILIZE”

July 17, 2017 - Georgia’s First Deputy Premier and Finance Minister Dimitri Kumsishvili points that “in July, inflation reaches peak and, since July, general price growth should decrease”. “In 2018, we expect inflation of 3% and prices should be stabilized”, he notes.




FORBES GEORGIA: “WORLD BANK: BUDGETARY REVENUES IN GEORGIA ARE LIMITED BY THE FREEDOM ACT”

July 17, 2017 - “Budgetary revenues in Georgia are limited by the Freedom Act”, the report prepared by the World Bank (WB) states. Therefore, the government has to pay attention to compliance of public expenditures with financial stability, the document indicates.




FORBES GEORGIA: “WB: IN GEORGIA, RAISED TAXES DAMAGE MOSTLY POOR SEGMENTS OF THE POPULATION”

July 17, 2017 - By request of Georgian Finance Ministry, the World Bank (WB) has prepared report “Review of Public Expenditures”, the magazine reports.

In the report, the WB notes that public expenditures will remain on a high mark in short and long-term periods, one of which reasons are social expenses, including universal healthcare program, the article says.

energy, oil & gas

REZONANSI: “I DO NOT THINK THAT GAS WILL INCREASE IN PRICE MORE THAN BY 5 TETRI”

July 18, 2017 - Tariff of gas transportation has increased by 0.5 tetri per 1 cubic m, up to 1.884 tetri.

Irina Milorava, chair of National Energy and Water Supply Regulating Commission, notes that “previous tariff was established in 2000”.

companies

FORBES GEORGIA: “GEORGIAN LAW FIRMS IN “LEGAL 500” RATING”

July 20, 2017 - In 2017, 13 Georgian law firms and 17 lawyers were assessed by The Legal 500, the magazine reports.

The article notes that in Georgia, local high-quality firms have to compete with such international companies, as Ernst&Young and Dechert Georgia.




FORBES GEORGIA: “GEORGIAN STOCK EXCHANGE’S SHARE IN TBILISI STOCK EXCHANGE DECREASED”

July 19, 2017 - Share of Georgian Stock Exchange in Tbilisi Stock Exchange decreased to 35.22%, the magazine reports.

Reduction of the share resulted from additional emission release by Tbilisi Stock Exchange of 183,897 shares at the end of last year, which were acquired by Galt&Taggart (which share made up 21.59% as a result), TBC Capital (21.59%) and GSF Holdings Georgia (21.59%).

transport & communications

TABULA: “AGENCY FOR TRAFFIC JAMS’ REGULATION TO BE CREATED IN TBILISI”

July 20, 2017 - According to the master plan of Tbilisi development, body for supervision of traffic control systems will be created in the capital city, Tabula reports.

The matter concerns the body, which will be responsible for planning of transport network for all kinds of transport, enforcement and operating of the planned.




REZONANSI: “SUBWAY IN VAKE, DIDI DIGOMI, VAZISUBANI AND AIRPORT”

July 18, 2017 - One of projects, envisaged by the master plan of Tbilisi development, is extension of subway lines, the newspaper reports. As the article points, group City Institute, which works on renewal of the plan, has already presented materials, prepared within the contract, to architectural service of Tbilisi City Hall.

finances & banking

FORBES GEORGIA: “HOW EXPENSIVE IS BANKING CREDIT IN GEORGIA?”

July 20, 2017 - In Georgia, many consider that rates on credits are high, author of the article says.

However, if compare April 2017 with April 2003, rates on credits, issued in lari, have decreased by 8.6 percentage points, while on credits, issued in dollars – by 14.9 percentage points, the article indicates.




BANKEBI DA FINANSEBI: “IRAKLI RUKHADZE ACQUIRED “LIBERTY BANK””

July 20, 2017 - According to information, yet not confirmed officially, Liberty Bank was acquired by businessman Irakli Rukhadze, close to family of late billionaire Badri Patarkatsishvili, the newspaper reports. As the article notes, details of the deal are unknown at this stage.

agriculture & food

REZONANSI: “CONTENT OF NITRATES IN WATER-MELONS 3 TIMES EXCEEDS ADMISSIBLE NORM”

July 21, 2017 - Amiran Shengelia, head of non-governmental organization Ethics, declares that “imported and local fruits and vegetables are oversaturated by nitrates, especially water-melons and nectarines”. “We have conducted research and determined level of nitrates in vegetables and fruits (3 times exceeding the norm)”, he points.




FORBES GEORGIA: “TASTY INVESTMENTS”

July 21, 2017 - Exporting success of Georgian hazelnut takes a start from appearance of Italian Ferrero on Georgian market, the magazine points. Now, we can say with confidence that hazelnut is steadily in top three of exporting production, the article states.




EUGEORGIA.INFO: “GEORGIA CAN TURN INTO KNOW-HOW HUB IN TRANSCAUCASIA”

July 19, 2017 - Vasil Akhvlediani, deputy head of representation of German company Hipp in Georgia, considers that in respect of biotechnologies Georgia can become “a know-how hub” on South Caucasus. “The company wants to expand in a large scale, the matter concerns biofarms on thousands of hectares that will be the only precedent in Transcaucasia”, he declares.




EUGEORGIA.INFO: “PRODUCTS WITH GEOGRAPHICAL INDICATIONS BRING ANNUALLY TO ECONOMY THE INCOME OF 50B EUR”

July 18, 2017 - Joint project of the UN Food and Agriculture Organization (FAO) and EBRD aims strengthening of institutional framework of geographical indications and development of steady chain of values in Georgia’s dairy sector.

The project coordinator Kateryna Poberezhna notes that in Georgia, over 40 products with geographical indications are registered – chacha, churchkhela, Meskhetian chechili, Megrelian sulguni, Machakhela’s honey, Akhalkalaki’s potato, etc.

construction

FORBES GEORGIA: “NEW ECOCENTER OF TBILISI”

July 20, 2017 - Zurab Mekvabishvili, director of SEU Development, says that his company has invested more than 20 million in educational (currency is not specified). While starting from 2014, the company is engaged in residential construction.




NETGAZETI.GE: “COMMERCIAL SPACES WERE BUILT OFTEN WITHOUT PREDESIGN – MASTER PLAN OF TBILISI”

July 19, 2017 - Master plan of land use in Tbilisi indicates that “for the recent years, many objects of commercial appointment (mainly, trade and office spaces) were built in Tbilisi”. However, “provision of such areas was made often without predesign”, the document specifies.




NETGAZETI.GE: “MASTER PLAN: NOBODY LIVES IN 10% OF APARTMENTS, BUILT IN TBILISI”

July 19, 2017 - Authors of concept of land use in Tbilisi consider that “it is necessary to limit housing construction and to direct it on an intra territorial resource of urbanized part of the city for overcoming of existing structural fragmentation”.

Thus, authors of the concept declare that taking into account demographic forecasts, there is no need for such number of residential apartments.