Expo Georgia Director: Economy is entering a crisis

The Georgian Government Administration said Kobakhidze thanked the Azerbaijani Government for hosting the Georgian delegation, underscoring the significance of the meeting in further strengthening bilateral relations.“Georgia and Azerbaijan firmly support each other’s sovereignty and territorial integrity [...] In today’s rapidly changing and complex geopolitical landscape, the importance of peace and stability has become even more crucial for regional development and sustainable prosperity. I believe through our united efforts, we can not only overcome challenges but also seize existing opportunities for more effective cooperation”, Kobakhidze said.During the session, he introduced a tripartite cooperation initiative aiming to include all three South Caucasus countries - Armenia, Azerbaijan and Georgia - in various sectors, stressing the importance of energy and transport route functionality and regional security.The Prime Minister noted Azerbaijan had been among Georgia’s top five trade partners in recent years, asserting its status as “one of the most important strategic partners”.“We are collaboratively implementing several significant regional projects, including the Baku-Tbilisi-Ceyhan pipeline, the Baku–Tbilisi–Erzurum gas pipeline, the Baku-Tbilisi-Kars railway, the Southern Gas Corridor, the Middle Corridor project, and the Black Sea submarine cable project. It is essential to focus our efforts on ensuring and promoting energy security and independence”, he said.Asadov congratulated Kobakhidze on his re-election following the recent parliamentary elections in Georgia. He noted 2024 was a “significant year” for both countries, marking the first presidential and parliamentary elections held on Azerbaijani sovereign territory.“Presidential and parliamentary elections were held in Georgia as well. The results of these elections in both countries reflect the will of the Azerbaijani and Georgian peoples. I am confident that our governments will continue to work together constructively, contributing to the development and prosperity of our nations”, he said.“Strengthening relations with Georgia is one of the priorities in Azerbaijan’s foreign policy. Recently, our strategic partnership has reached a new level of cooperation that encompasses all important areas. We consistently support each other during challenging times. I would like to highlight our mutual backing regarding territorial integrity. Our economic and trade collaboration is always important. Georgia is one of the most important trading partners of Azerbaijan”, Asadov added.

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Telasi says that the projects were focused on improving the quality and reliability of Tbilisi's electricity supply.Within the framework of the investment program, work was carried out to reconstruct and modernize the main equipment of high and low-voltage substations and cable power transmission lines 110/35/10/6/04 network. Preparatory work for the SCADA system implementation and the construction of the new substation “Krtsanisi” is underway.Reconstruction and modernization of the main equipment were carried out at the substations “Makhata”, “Sanapiro”, “Dighomi-2”, “Airport”, “Navtlughi-2”, “Saburtalo-1”. Power transformers T1 and T2 were replaced at the substation “Dighomi-2”. Complete reconstruction and modernization of four central distribution points was completed: TsGP-0417, TsGP-0080, TsGP-5060 and TsGP-3614. Reconstruction and modernization works were also carried out on the 35-kV power transmission lines “Lilo-1-2”, the 110-kV power transmission lines “Dighomi-102”, “Dighomi-103” and cable power transmission lines with a total length of 136 km.In 2024, Telasi distributed 3.757 billion kWh of electricity, which is 8.5% (293 million kWh) more than the volume of electricity distributed in 2023. The company attributes this increase to the increase in economic activity in the country and the number of new subscribers.The number of subscribers of JSC Telasi at the end of last year increased by 4% (29.8 thousand subscribers) y.y and amounted to 780.7 thousand subscribers, of which 699.1 thousand are individuals, and 81.6 thousand are legal entities.According to 2024 data, the total length of the company's power transmission lines amounted to 7,153 km, which is 4.4% (299 km) more than the figure for 2023 (6,854 km). The total length of the company's power transmission lines increased as a result of network development, reconstruction and modernization works.

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Kobakhidze was met by Vice Prime Minister of the Republic of Azerbaijan Samir Sharifov at the Heydar Aliyev International Airport in Baku.Within the framework of the visit, Irakli Kobakhidze will hold face-to-face meetings with President of the Republic of Azerbaijan Ilham Aliyev and Prime Minister Ali Asadov.In addition, the 10th session of the Intergovernmental Commission for Economic Cooperation between Georgia and Azerbaijan will be held.Kobakhidze visited the Azerbaijani capital with a delegation, which includes Levan Davitashvili, the First Vice Prime Minister and Minister of Economy and Sustainable Development appointed by the Georgian Dream party; Maka Bochorishvili, the Minister of Foreign Affairs appointed by the "Dream" government; Davit Songulashvili, the Minister of Environment and Agriculture appointed by the "Georgian Dream", Tinatin Rukhadze, the Minister of Culture, and Levan Zhorzholiani, the Head of the "Dream" government's Administration.Earlier, on January 15, the media reported that Irakli Kobakhidze's official visit to the United Arab Emirates had been canceled. The visit was postponed by the host country.Kobakhidze's administration has not confirmed the cancellation of the visit, saying that the visit is at the end of the month and its date will be announced later.In addition, Georgia will not participate in the Davos World Economic Forum and the Munich Security Conference in 2025, as he has not been invited.“Kobakhidze has not received an invitation to any of the events so far,” the administration of the “Dream” government states.The Davos World Economic Forum is being held in Davos, Switzerland, on January 20-24. 60 heads of state and 130 countries are participating in it.The Munich Security Conference is scheduled for February 14-16 this year.

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According to the updated report of Creditinfo, as of 01.01.2025, there are 1,588,300 active borrowers (01.08.2024 – 1.577 million). The balance on loans has increased to 45.8 billion GEL (01.08.2024 – 43 billion).As you know, Creditinfo only records loans up to 10 million GEL. The limit was increased at the end of 2022 (previously it included loans of 3 million).As of 01.01.2025, 140,260 loans from 82,365 borrowers were overdue for up to 3 years from the bank's issued credits, with a total balance of 1.405 billion GEL.As of August of this year, there were almost 10,000 more problem borrowers (01.08.20124 - 91,500 borrowers, 153,600 loans). The volume is almost unchanged at 1.4 billion.According to Creditinfo, by the end of 2024, a total of 50.3 billion GEL of active loan contracts (banks, MFOs, Pawnshops, leasing companies) had been signed. Including the portfolio of leasing companies is within 0.6 billion GEL.Between September and December, the share of leasing companies and loan issuing entities increased, while that of banks decreased, to 81.7% (01.08.2024 – 91.3%).

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The NBG noted that 96% of transfers came from 24 major partner countries, each transferring over $1 million that month. Outbound transfers from Georgia in December 2024 reached $34.8 million, marking a 7.6% increase compared to December 2023.The top source countries for transfers in 2024 were:Total transfers to Georgia in 2024 amounted to $3.36 billion. While overall transfers decreased compared to the previous year, EU countries emerged as the primary source of transfers, showing 10.2% annual growth.

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Supported by the Agency, Georgian wine was presented to markets in the United States, Portugal, Finland, Denmark, Austria, Norway, Italy, the Netherlands, Japan, Poland, Germany, China, as well as France, the United Kingdom, Belgium, Hungary, South Korea, Switzerland, Turkey and Latvia.“The strategic markets for Georgian wine remain the US, the UK, Germany, Poland, the Baltic States, China, South Korea and Japan, where various events are being implemented by contractor companies of the Agency to promote Georgian wine and increase its export potential”, the Agency said.Wine exhibitions, competitions, tours and festivals were also held throughout Georgia to enhance the potential of wine tourism and promote the culture of wine consumption among the domestic population, with the country hosting 54 wine-related events last year, including 17 exhibitions and festivals, 15 tasting-presentations, 16 tours with foreign wine experts, various competitions and a symposium.The Agency added the state programme for promotion of Georgian wine, diversification of markets and increasing of export capacity had been allocated GEL16 million last year, with wine exports rising by six percent and reaching 95 million litres in 2024 compared to the previous year.

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The Acting Governor of the National Bank of Georgia presented the stable macroeconomic situation and investment environment in Georgia to both current and potential investors in the country.During the meeting, Natia Turnava highlighted the country's progress in strengthening macroeconomic and financial stability, as well as the successful policy of reducing dollarization, which is a key factor in ensuring price stability and developing the financial sector.“More than 25 institutional investors, funds, and various investment groups participated in this meeting, which indicates high interest in Georgia and confirms that our country remains a highly attractive destination for investors," - stated Natia Turnava, Acting Governor of the National Bank of Georgia.The Deputy Minister of Finance of Georgia, Ekaterine Guntsadze, also participated in the meeting with investors.

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As of the document, half of this loan (100 million) will be allocated to climate finance projects, a quarter to MSMEs, and another quarter to women-led MSMEs.Artak Hanesyan, Ameriabank’s CEO, commented:“This long-term loan agreement stands out as the largest of its kind ever signed between IFC and a financial institution in Armenia. Beyond its scale, the agreement is significant for its purpose: supporting business initiatives and services that address climate change challenges, empowering women entrepreneurs, and contributing to a sustainable future for Armenia. We deeply appreciate IFC’s decade-long partnership and our shared commitment to creating opportunities for businesses and people in Armenia.”Marcelo Castellanos, IFC’s Senior Regional Manager for the Financial Institutions Group in Europe, commented:“This partnership is part of IFC’s strategy to boost private investment in sustainable development. Ameriabank, a leader in climate financing, is a strategic partner in advancing these goals. By providing long-term funding, we aim to demonstrate the viability of climate finance products and inspire replication and scale across Armenia’s financialsector.”Archil Gachechiladze, Bank of Georgia Group PLC’s CEO, commented:“This transaction is another step towards facilitating sustainable development and supporting the high-growth Armenian economy. Ameriabank is a leading franchise in the country and it will continue to empower businesses and drive positive impact for local communities. I would like to thank the IFC and Ameriabank teams for their successful collaboration.”The Bank of Georgia Group acquired Ameriabank, one of Armenia's leading financial institutions, in 2024.

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