The President of the European Bank for Reconstruction and Development (EBRD), Suma Chakrabarti, has stressed that the Georgian government is taking the correct steps in response to recent economic challenges.
More than four thousand participants registered for EBRD events in Tbilisi
By Gvantsa Gabekhadze
Wednesday, May 13
Chakrabatti, who has came to Georgia in the frame of the EBRD annual meeting held in Tbilisi, said that Georgia has been selected for the important annual occasion owing to its successful reforms.
“I would like to point out that I am quite proud that the first EBRD annual meeting and business forum in the Caucasus is being held in Georgia. It is critically important that your reforms became a perfect example of why the European Bank for Reconstruction and Development Investments must invest in this region. We have already invested 2.6 billion Euros in different sectors of Georgia,” Suma said.
EBRD President said that Georgia will have the opportunity to demonstrate its capacity for the economic development.
Minister of Finance Nodar Khaduri, who met the EBRD official as he arrived, said that many interesting bilateral and multilateral meetings are scheduled to be held at the governmental level, as well as between businessmen.
“We are aiming to increase Georgia’s awareness and interest in the investment. The world's leading businessmen will arrive in Tbilisi to exchange their experiences and discuss the implementation of new projects,” Khaduri said.
Head of the National Bank of Georgia, Giorgi Kadagidze, who is frequently accused of provoking the Lari devaluation tendency in the country by the majority members, assesses the EBRD event as of the utmost importance. He states that the Georgian side should take advantage of the event to positively showcase its business capacities and investment opportunities.
“The growth of direct foreign investment and the spirit of our international partners are the elements which create jobs and bring in real income. Therefore, I think we all should use this week for our main aim - to show the positive aspects of our country’s investment potential,” Kadagidze said.
The National Bank head also had to make a comment over the sharp devaluation of the national currency that has lost 32% of its value against the dollar since November of the last year and currently shows no sign of recovery.
Kadagidze says he will visit the legislative body in the next week, as the consultations with the government in connection with the issues over the national currency will be held at that time.
"The hearing of the National Bank`s annual report will be held at the parliament next week. We will discuss all topics, the reasons and the solutions of the current situation,” Kadagidze said.
Analyst Mamuka Areshidze states that both the government and the National Bank are responsible for the Lari devaluation.
“Kadagidze has managed to pay Georgia’s loan to the World Bank worth of 400 million USD two-years early. Of course this is raising suspicions concerning the National Bank in connection with the Lari devaluation. There was no need to return the loan until 2017… the government is guilty that it lets the National Bank and its head to act freely, against state interests,” Areshidze says.
Meanwhile, the opposition United National Movement is pointing its finger to the current government rather than to the National Bank.
They stress that the government’s irresponsible policies, including the repeated amendments made to the visa status of foreigners, have hindered Georgia’s economic development.
The UNM stresses that the government must step down.