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Privatisation problems

By Messenger Staff
Tuesday, April 13
The Georgian Government plans to gain GEL 250 million from privatisation in 2010. However in the first quarter only 21 million GEL was received, as opposed to the projected 76 million GEL. Current Minister of Economy Zurab Pololikashvili will have to work hard to fill this gap, as previous Minister Lasha Zhvania was discharged for failing to achieve privatisation income targets, as PM Nika Gilauri stated at the time.

At some point the definitive list of state enterprises which should be privatised and sold will be drawn up. There are 1,424 state owned enterprises, out of which 506 do not produce any accounts and around 900 do not function at all. The state has to pay GEL 130 million annually to maintain these enterprises. So called ‘profitable’ enterprises among them made last year around GEL 95 million, so the plan is to get rid of unprofitable enterprises first.