IT companies with virtual zone status require fair treatment by the state

Compared to the 2020 average, the index change amounted to 41.3 percent.The RPPI covers the market of new residential property in Tbilisi, both flats and detached houses segments.The following table shows percentage changes of the RPPI compared to the previous quarter, the corresponding quarter of the previous year and to 2020 average.In the first quarter of 2024 a price increase compared to the previous quarter was registered both in flats (1.2 percent) and detached houses (0.7 percent) segments.Compared to the first quarter of 2023, the prices increased in both segments, for flats by 12.9 percent and for detached houses by 13.3 percent.The following graph represents the dynamics of the total RPPI and its sub-indices, as well as the Consumer Price Index

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According to the rule approved by the NBG President's order (No. 16/04), each fact is sanctioned with 2,000 GEL. Also, a fine of 2,000 GEL is imposed on the business entity, for the financial monitoring service, for hiding information on the transaction. The supervisor revealed 5 cases, i.e. 10,000 GEL, which was added to 6,000 GEL.MFO was fined with 4,000 GEL in the case of two high-risk clients. Also, 20,000 GEL for a faulty software (electronic) system, the purpose of which is to detect suspicious clients, persons related to them and transactions.

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"Silk Bank" ended Q1 with a loss of 1.3 million GEL.The management explains the negative trend of recent years with the withdrawal of BTA Bank (Kazakhstan) from the shareholders' structure. The bank has been making losses for several years, and if it continues like this, it will be forced to raise more resources to meet regulatory capital requirements. This is mentioned in the emission prospectus.The bank will direct the resources raised by the issue of 10 million to secondary capital. Before that, the shareholders increased the authorized capital by 9.8 million GEL by issuing 98,000 shares.As of Q1/2024, Silk Bank's deposit portfolio is up to 114 million GEL. From this, foreign currency deposits are equivalent to 91 million GEL.

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Panex specializes in manufacturing wall and roof sandwich panels, accessories, and refrigerator doors. Polyurethane sandwich panels are a cutting-edge construction material suitable for various commercial and public buildings. They are known for their exceptional thermal insulation properties, ease of installation, and long-term durability.The partnership between Basisbank and Panex has been instrumental in Panex's success. Basisbank's support enabled Panex to acquire the latest Italian equipment, enhancing the quality of its sandwich panels and ensuring compliance with European standards."We have seen significant growth in the number of infrastructure projects in the region over the past year. With a 70% increase in our sandwich panel production, we are confident in our ability to achieve our ambitious goals. Basisbank has been a constant supporter of our development and progress, and we look forward to continuing our successful partnership to further expand our business. Our aim is to establish a strong presence in the local market with high-quality products, ensure consistent supply to meet local demand, reduce reliance on imports, and ultimately increase our export capabilities." - Giorgi Levidze, CEO of Panex."Basisbank stands as a committed supporter of businesses, consistently championing local production and bolstering Georgian business and economic development. With Basisbank's financial backing and our fruitful partnership with Panex, we are confident that the business will seize even greater opportunities for expansion. Together with Panex, we take pride in our role as co-architects of yet another successful Georgian business." – Gigi Gabunia, Commercial Director of Basisbank.Video story of partnership between Basisbank and Panex:

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Speaking at the economic forum Challenges of the Georgian Economy: Geopolitical Role, Investments and Economic Growth, Davitashvili highlighted forecasts and trends, sectoral priorities and challenges, large infrastructure projects, structural reforms and cooperation between the state and the business.“The forecast of the International Monetary Fund shows Georgia will be one of the fastest-growing economies - in fact, the fastest-growing economy among the countries of Europe and the wider region, with economic growth above five percent until 2029”, he said.He also said the growth rate was expected to be above 5.7 percent this year and stressed the country could achieve “even higher” numbers.The Minister also reviewed the current investment sector, saying transport, logistics, service and tourism sectors had recorded “high investment activity” last year. He also emphasised the “high economic activity” had led to a “record-high” employment and a “record low” in unemployment last year.“In the future, we will focus on productivity growth and the technological transformation of the country. The Ministry is actively working on the policy that will allow the country to achieve this goal”, he said.Davitashvili also highlighted the importance of the Middle Corridor - a logistics route connecting Central Asia and China to Europe via the South Caucasus - for Georgia’s economy. He mentioned large infrastructure projects that he said would increase the Corridor's capacity and its economic efficiency.The official noted the volume of cargo transported through the Middle Corridor had doubled in 2022 and again risen by about 86 percent in 2023. He also mentioned the roadmap for the period until 2027 which outlines each participating country’s tasks for improving road infrastructure, management and coordination along the route.Davitashvili emphasised the plans would reduce prices and shipping times and increase safety. He also mentioned Georgia's natural location could allow it to play a “vital role not just as an ordinary link in the chain but as one of the leading ones, including at the political level”. 

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One million direct tourists - an 11 percent increase from the same period in 2023 - were part of the figure, with the number of international visitors from European Union countries at a “record high”, she said.Kvrivishvili said the numbers showed the domestic tourism sector had “completely recovered” from the Covid-19 pandemic.Compared to the same period in 2019, there has been a seven percent increase in international visitors, she also noted.The Deputy Minister added tourist flows from European countries - in particular Germany and Poland - as well as Gulf states were increasing.“The tourism industry in Georgia is maintaining an important dynamic, with diversification playing a key role [...] The country is continuing its policy of diversification to promote itself on the international scene and attract even more international travellers and income from the tourism industry”, she said.The number of visits from EU countries and the United Kingdom has seen “record growth” with a 44.4 percent increase from 2019 figures, the National Tourism Administration said.Poland was the origin of the highest number of visits in the first quarter with a 67.1 percent increase from 2019, followed by Germany with a 46.1 percent increase and the United Kingdom with 27 percent growth, the body said.The number of visits from “high-spending” tourist markets has also increased, with a 27.9 percent increase from Gulf countries compared to 2019, a 33.5 percent increase from Saudi Arabia and a 66.3 percent increase from Kuwait, the Administration added.The body said the data was calculated according to methodology developed based on recommendations of the World Tourism Organisation and measured completed visits. 

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MBC's lending increased by 13% annually, revenues by 17%. MFO ended the first quarter of 2024 with a profit of up to a million.Currently, MBC provides unsecured loans up to 20,000 GEL at an annual rate of 25-35%, and secured loans (auto/mortgage/business/agri/startup) within 20-27%.MFO has announced a reduction in loan rates. After the transformation into a bank, which will directly attract GEL resources from the NBG, without the bank's mediation.MBC risk director Nino Devdariani, who is also a microfinance lobbyist (member of the board of the Microfinance Association), finds it difficult to predict to what level the loan interest will fall, whether it will fall below the 20% threshold or not.As she explained, together with macroeconomic indicators and the refinancing rate, it depends on many parameters.This spring, Nino Devdariani is expecting two news from the NBG, first is microbank license and doubling of 100,000 GEL lending limit for MFOs from the Ministry of Finance, which the recommendation of the NBG.

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On the last trading day of the previous week, the price of 1 gram of gold exceeded  216 GEL.According to the NBG, 557 gold coins have been sold since December 4 (2023), including 8 pieces of 1 kg, and the rest of 0.02 g.Most of them, 117 units, were sold within 2 days of the offer, on December 4-6 last year.Since then, in 5 months, the price of gold has increased by 16%.Against the background of geopolitical risks and the recent increase in inflation, the demand for gold has increased significantly.Only the 20g bar can be purchased online, while 1,000 g bars are sold in the center.

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