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Minister says tariffs may increase

By Gvantsa Gabekhadze
Thursday, July 9
Minister of Energy, Kakha Kaladze, states that the devaluation of the lari has seriously affected the energy sector. The Minister did not exclude the increase in tariffs.

“A regulatory commission is working on the issue and we need to wait for a decision. Their solution will be made public shortly,” he said.

Kaladze added that companies running thermal power plants are under pressure because of the national currency devaluation since a significant part of the country energy has been imported.

“The amount of gas exploited in plants to generate energy is also considerable,” Kaladze stressed.

The National Bank of Georgia has set a new exchange rate, according to which the lari has slightly gained value against the dollar.

Starting from July 8, 1 USD will cost 2.2457GEL. The previous exchange rate was 2.2465 GEL.

According to the new exchange rate, the lari has gained value against the euro as well. From July 8, 1 EUR will cost 2.4635 GEL, while the previous rate was 2.4777 GEL.

Georgia’s Minister of Economy and Sustainable Development, Giorgi Kvirikashvili, states in response that the lari exchange rate has indeed stabilized.

According to him, no sharp fluctuations means the exchange rate is stabile, and we see this today.

“Of course, stabilization means no more sudden changes. Today the exchange rate is stable, teetering between 2.24 and 2.25 GEL per 1 USD, while earlier it was 2.38. We cannot create a stronger currency artificially,”- Kvirikashvili said.

As Minister of Finance Nodar Khaduri has claimed, the exchange rate will stabilize due to increased export and influx of tourists.