01 August, 2013
A bill offering six-month moratorium on execution of overdue mortgages split opinions between the legislative and execution authorities. With the purpose to alleviate the social problems of evicted people who may lose their single dwelling space due to unpaid mortgages, a bill was initiated by Gedevan Popkhadze, Deputy Head of Human Rights and Civil Integration Committee of the Parliament, on six-month suspension of execution of the problematic mortgages until February 1, 2014. However, the bill was removed from the list of issues slated for the second parliamentary hearing on July 27, 2013 after it faced severe criticism of financial market analysts, business and executive power.
01 August, 2013
To prevent the sale of agricultural lands under the changed status, Georgian government created more complicated mechanism for status change: apart from the registry approval for status change, now land owners need governmental approval too.
01 August, 2013
USD 140 million will be invested in Georgian education to stimulate the labor force in the country through the US state- supported five-year compact of the Millennium Challenge Corporation. This will be the second compact implemented by MCC to Georgia.
01 August, 2013
Georgian commercial banks’ keen interest in running non-profile businesses remains a stumbling block of Georgian economy. The problem is particularly questioned by developer companies who believe the bank-owned construction companies spoil the market competition and ask for curbing banks activity in construction business. Georgian central bank believes commercial banks have no excessive non-profile assets and they have never financed their affiliated construction companies. Some developer companies accuse banks in imposing bondage loan terms and practicing intricate policy of taking assets from construction companies into the bank’s ownership since 2008.
01 August, 2013
Fair market competition, development of human resources and access to financial resources will be the three pillars on which the upcoming strategy of economic development of Georgia will stand. The final draft project for the strategy is scheduled to be worked out by this coming September and approved as a law in two-three months, after which all ministries and state structures will focus their action plans on the approved economic strategy – this is the key issue Georgian Prime Minister Bidzina Ivanishvili agreed with the group of economic pundits on July 25, 2013.
01 August, 2013
‘There was no adequate response from the Embassy of China’
Lately more and more people say that they face problems connected with bringing cargo from China. Recently, several businessmen addressed us. They said that cargo sent to Tbilisi, for unknown reasons were discovered in Ukraine, namely in the port of Illichivsk. And to release a container from there is almost like a releasing cargo from pirates.
25 July, 2013
A moratorium is imposed on sale of agricultural lands in Georgia to foreign firms and citizens until the end of 2014. Due legal framework, regulating land divesture issues in the country, will be shaped out meantime. International Transparency Georgia finds the moratorium controversial to Georgian constitution and decision of constitutional court of Georgia admitting divesture of agriculture lands to foreign citizens a year ago. Part of sector pundits argues any decision of parliament is legal although some believe moratorium is not a solution but just a delay of the problem and appeal for settling the issue through economic tools.
25 July, 2013
Negotiations between Georgia and the EU on unfettered trade were successfully concluded. On July 22, 2013 the EU and Georgia concluded negotiations for a Deep and Comprehensive Free Trade Area (DCFTA), as part of the Association Agreement between them. The conclusion of the negotiation process is a huge step forward before the upcoming Eastern Partnership Summit in Vilnius in November, 2013. The work on the legal expertise of the agreement text and preparation procedures for signing started immediately.
25 July, 2013
The volume of agriculture credits almost doubled thanks to the government-initiated preferential agro credits program, exceeding the credits launched in April of 2013. In three months the amount of agro credits exceeded GEL 50 million while the figure stood just around GEL 56 million in the total agro credits loan portfolio of Georgian banking sector by April 1st of 2013 when the Program took its start. However, sector pundits still press on cooperatives development to make the national agriculture sector really promoted.
25 July, 2013
European Bank for Reconstruction and Development plans to issue its corporate bonds in Georgian national currency. This will be the first ever corporate bond issued in Georgian national currency Lari (GEL) by the international financial institution. The move is expected to promote Georgian capital market on the one hand but some sector pundits fear it may drain money out of the yet money-deficient Georgia.
18 July, 2013
Lately, Georgian administration highlighted development of innovation technologies. A discussion on the innovation-based economic growth and the role of communication technologies’ development was held on July 15, 2013. It was organized by the World Bank and the Ministry of Economy and Sustainable Development of Georgia.
18 July, 2013
Founders of the biggest Georgian developer company Center Point Group as well as Dexsus company, managing the assets of Center Point, allegedly practiced financial pyramid scheme for years. Now they face penalties amounting to GEL 250 thousand and GEL 100 thousand, respectively. Whether or not they will face imprisonment, will be decided at the court session, scheduled by September 4, 2013.
18 July, 2013
To ensure better legal protection of consumers, more control is expected to be imposed on private lenders of mortgages, enjoying loose regulation for years in Georgia.
18 July, 2013
Unilateral cancelation of visa-free regime for Iranian citizens starting from July 1, 2013, is not supposed to have any serious negative impact on Georgian-Iranian economic ties.
18 July, 2013
To ensure fair market competition and smooth adoption of digital broadcasting system in Georgia, the Institute for Development of Freedom of Information suggests to the administration to permit limited- capacity bands for regional broadcasting companies in pursuance with the US model.