Economy
Georgia - among top three wine importers in Russia
01 May, 2014
The Georgian wine import to Russia exceeded its pre-embargo level as it takes over 6.4% of the Russian wine market compared to the 5% before the embargo. The unbelievably high demand for Georgian wines exceeded even the most optimistic expectations and laid ground to this success story, sector pundits say. However, the market remains risky. Georgian companies try to mitigate the risks through advanced payments.
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Better investments policy for petty fry required
01 May, 2014
Georgia lacks proper regulation of petty investors since it provides neither a clear policy on investment opportunities nor due protection of their investments. Sector pundits say Georgia as an investment-deficient country cannot ignore even the pettiest investor. The creation of a fair investment climate for all investors in the country is a must. Surprise or not, but an economically underdeveloped small country like Georgia with an unemployment rate of 16% [that stretches to 45% behind the screen] and over a million of its citizens looking for job opportunities abroad, lately became attractive to labor migrants from Asian countries. Labor migrants from China, India, Taiwan, Egypt, Iran and Africa come to Georgia for business opportunities. They open small trade outlets, run restaurants or a hotel business, some go to the regions for agriculture activity, and some simply trade on the street.
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Long money poses non-transparency risks
01 May, 2014
The so-called long money project launched this year by the Georgian authorities in order to provide the economy with long-term credits is swathed of non-transparency. The project is based on the emission of state Treasury Bills with a volume of GEL 200 million in 2014. Because only banks are allowed to participate in the securities auction in Georgia, banks will buy these state securities while the state will deposit the raised money at the purchaser banks under a single major condition: the state deposits should be disbursed on long-term credits only. Also, banks are required to pay in deposits 1% higher rates than the interest the state pays them for T-Bills. Otherwise, the state gives the banks a loan under 1% whereas it does not restrict them to charge the targeted credits as high as they would like.
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Black tomatoes to be imported to Georgia
30 April, 2014
Georgia is planning to import black tomatoes, which are no less delicious than red ones.
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Georgian peach will be exported to Russia and Ukraine
29 April, 2014
“Georgian Fruit Export Company” is preparing for the coming season. Its managers are planning to export Georgian fruit to Ukraine and Russia.
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Agriculture credits project witnessed imbalance
24 April, 2014
The Georgian agriculture loans portfolio has increased more than five-fold from GEL 59 million to GEL 318 million within a year, this in the framework of the state initiated Preferential Agro-Credit project. The project started on 27 March 2013 and implies State co-financing of banking credits for farmers and agriculture related enterprises to boost the sluggish agriculture sector of Georgia. 14,100 preferential credits with a total volume of GEL 318 million were disbursed in more than 30 agriculture branches, statistics show. 70 new processing enterprises were set up and 400 old ones were renovated. The result is estimated as positive but far from satisfactory because similar statistics show a staggering imbalance in the credits’ redistribution between the east and west parts of the country.
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The Georgian Vicious-Gold-Circle
24 April, 2014
While gold price goes down at the global markets it crawls up Georgian market. As a matter of fact, Tbilisi Gold Exchange more-less pursues the international gold market trends. But beyond the TGX this trend has no impact unless it is going up. Petty traders involved in sale of gold jewelry, pawn-shops or financial institutions requiring for gold items as the loans back-up increase prices instantly if they go high at the global market while react on drops very slowly if ever. Some analysts believe this bespeaks of the monopoly.
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Georgian postal regulation nurtures a monopolist
24 April, 2014
A new draft law on Georgian postal communication opposes best practices and international obligations assumed by the EU. It lays ground to the emergence of a monopolistic company on the market that may scare off around 40 communication companies including the global fames DHL, TNT, UPS and FEDEX. If this happens, the image of Georgia will be marred significantly because the world only knows about one similar precedent in Turkmenistan when international postal companies left the country in 2005.
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Georgian wine export resumed to Belarus
24 April, 2014
Georgia resumed the halted wine export to Belarus, Levan Davitashvili, Chairperson of the National Wine Agency of Georgia, informed on April 17.
“The export to Belarus stumbled starting this year. Early this April a delegation of the Ministry of Agriculture headed by Shalva Pipia, Minister of Agriculture, went to Minsk and achieved concrete results. NWA has already issued the first export certificates on Tbilvino Company on the export of around 80 000 bottles,” Davitashvili reported and added that the problems did not cover only Georgia.
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