NEWS
GEORGIA TODAY JANUARY 24 - 26, 2017
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Bank of Georgia: Georgians Positive about Larization of Loans
The Larization Program was launched on January 17. Source: cbw.ge
BY THEA MORRISON
B
ank of Georgia Association President, Zurab Gvasalia, says he believes the Georgian people are positive about the recent government initiative to begin the larization of loans. The Larization Program is a one-time measure for borrowers who were affected by the sharp depreciation of the national currency, Lari. The program was launched on January 17 and will continue for two months. The Larization Program means that loans received in US dollars before January 1, 2015, and signed for against real estate collateral, will be eligible for conversion into Lari loans. In total, 33,000 loans have been identified as eligible within the program. Gvasalia added that the interest of citizens towards the program is very high, and over 2000 people have
already converted their loans from USD to GEL. “The local society is very active towards the program, which means that they approve of the move to convert loans into the national currency. The Georgian banking sector is ready to serve all people willing to convert their loans,” the Bank of Georgia Association President said. The government is to provide subsidies to ensure favorable exchange rates for loan-holders wishing to ‘de-dollarize’. In turn, the NBG will provide the appropriate level of cash liquidity in Lari. The subsidy will not cover individuals whose sum of outstanding loans as of November 28, 2016 was more than $100,000, or if loans were transferred to another bank. The subsidy will also not cover individuals whose annual income in 2015 exceeded 100,000 GEL. $40,000 is the maximum amount of a loan that can be converted into Lari. The program is being administered by the Government of Georgia and the National Bank of Georgia (NBG).
Canada Revealed as Georgia’s Top Trade Partner in 2016
External merchandise trade in Georgia last year increased by 20 percent. Source: bpi.ge
BY THEA MORRISON
T
he National Statistics Office of Georgia (GEOSTAT) released preliminary data on Friday about external merchandise trade in 2016, which shows that Canada was the top trade partner of Georgia last year, followed by Turkey and Russia. GEOSTAT data reads that in 2016, external merchandise trade in Georgia amounted to $11966 million, 20 percent higher year-on-year. The exports equaled $2114 million (4 percent lower), while the imports stood at $ 9852 million (27 percent higher). The negative trade balance was $7738 million in 2016 and its share in external trade turnover constituted 65 percent. Export excluding re-export amounted to $1658 million, 1 percent higher yearon-year. In 2016, the external trade turnover of Georgia with European Union (EU) countries amounted to $3601 million, growing by 14 percent compared
to the corresponding indicator of the previous year. Exports amounted to $571 million (12 percent lower), while imports amounted to $3030 million (20 percent higher). In 2016, the external trade turnover of Georgia with the Commonwealth of Independent States (CIS) countries totaled $2721 million (lower by 3 percent compared to 2015). Exports stood at $739 million (12 percent lower), while imports equaled $1983 million (1 percent higher). The top ten trading partners in the total external trade turnover of Georgia amounted to 68 percent in 2016. Georgia’s main exports in 2016 were: copper ores and concentrates (worth $312 million, or 15 percent of total exports), nuts (worth $179 million, or nine percent of total exports) and ferro-alloys (worth $169 million, or eight percent of total exports). As for the main imports of 2016, they were: medicines (worth $2.89 billion, or 29 percent of total imports), petroleum and petroleum oils (worth $619 million, or six percent of total imports) and motor cars (worth $473 million, or five percent of total imports).
Ambassador: Strong Cooperation between US and Georgia to continue BY THEA MORRISON
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he United States (US) Ambassador to Georgia, Ian Kelly, in reaction to concerns over Donald Trump’s accession to US presidency and his “America First” policy, says he believes that the existing strong cooperation between Georgia and the US will continue under Trump’s administration. The Ambassador says that the new administration has already expressed readiness to continue economic cooperation with Georgia. “We will see what policy the US has once the Secretary of State is appointed. However, I can
assure you that Georgia-US relations will remain strong and I think they may even be strengthened," he said. “I will advocate Georgia-US trade relations,” Kelly confirmed, adding that he is calling for the US Chamber of Commerce representative to visit Georgia. Donald Trump is the 45th President of the USA. He won the general election on November 8, 2016, against Democrat rival Hillary Clinton, and assumed office on January 20. At age 70, he is the oldest and wealthiest person to assume the presidency. Since the elections, his comments have led to concern that his ties with Putin’s Russia will strengthen to the effect that relations with Georgia will be damaged. For Tbilisi’s reactions to Donald Trump’s inaugural speech on January 20, see page 9.