Sarke: newsletter of 26 June 2009

TODAY:

economics

NBG POINTS AT DANGER OF PRICES DESTABILIZATION

As it is noted in the conclusion about budget amendments, prepared by the National Bank of Georgia (NBG), forecasted budget deficit practically doubled in 2009 compared with 2008. Namely, deficit will make up 8.3% of GDP instead of 4.4%.

ROBERT MUNDELL: FURTHER REDUCTION OF TAXES SHOULD BE HELD IN GEORGIA

Professor of Columbia University, Nobel Prize winner Robert Mundell considers that taxes in Georgia are still high despite their reduction, held in recent years. According to him, it is necessary to reduce tax rates sharply in order to stimulate Georgian economy.

PART OF THE US AID MAY BE USED FOR SENAKI POWER NODE AND KUTAISI-POTI GAS PIPELINE

Georgian Finance Minister Kakha Baindurashvili announced that part of the US aid may be directed at construction of Senaki electric transmission node and Kutaisi-Poti gas pipeline. Georgia should get $242 million from the US and discussion how to use this sum is underway, announced the Minister at today’s plenary meeting of the Parliament while discussing the budget amendments.

KOPITNARI AIRPORT TO BE OFFICIALLY OPENED FROM MONDAY

United Transport Administration announced that Kopitnari airport (in Kutaisi) will be officially opened from Monday. To remind, the airport was damaged because of Russian bombing during the August events of 2008.

STATE AGENCY FOR MEDICAL ACTIVITY’S REGULATION IS CONTENTED WITH SITUATION ON LOCAL MARKET

State Agency for Medical Activity’s Regulation has replaced the Drugs Agency since 2008. The latter was canceled activity after 3.5-year operation.

CHEMICAL MEASURES ARE LAUNCHED TODAY AGAINST FALL WEBWORM

National Service for Food Safety, Veterinary and Plants Protection started chemical arrangements against the fall webworm from today. Current year it is planned to treat 22,000 ha countrywide.

business

LLC FLAMINGO PLANS TO INCREASE PRODUCTION FURTHER IN 3-4 MONTHS

In his interview to Sarke Tamaz Tatarashvili, financial director of LLC Flamingo (poultry farm near Gori), said that the company plans to increase monthly production by 5,000 chickens in 3-4 months. The company plans to spend 100,000 lari with these aims.

SHARES OF 10 ISSUERS WERE WITHDRAWN FROM THE STOCK EXCHANGE

Georgian Stock Exchange reports that shares of 10 issuers were withdrawn from the trading system from June 23. Among the withdrawn JSCs are Binatmshenebeli, Business-Center Hotel Rustavi, Egrisi, Elva, Khobi Kolkhidmsheni, Kutaisi, Sakelektromankana, Samto, Tbilelektroaparati, Transmomsakhureba.

7 COMPANIES ARE INTERESTED IN REPARATION OF 3 GAMGEOBAS’ BUILDINGS IN TBILISI

Tbilisi City Hall told Sarke that 7 companies became interested in reparation of 3 gamgeobas’ (local administration) buildings in Tbilisi. The tender, divided into 3 lots, was held on June 24.

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Sarke