Latvian Foreign Ministry: The ruling elite continues to widen the divide with the Georgian people through repressive actions

As of Geostat, prices increased mainly in the subgroups of outpatient medical services (4.8%) and medical products, equipment and devices (4.5%). Hospital services increased by 0.2%.As for the comparison of prices compared to the previous month, according to Geostat, prices in the group increased by 1.1%.Prices increased in the subgroups: Medical products, equipment and devices - 1.5%, Ambulatory medical services - 1.4%, Hospital service prices did not change. In addition, in January 2025, compared to the previous month, the inflation rate in Georgia was 0.4%, and the annual inflation rate was 2%.

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According to the Ministry of Foreign Affairs, the Minister and the Ambassador reviewed the friendly relations between Georgia and Saudi Arabia, emphasizing the positive dynamics of high-level visits. They also discussed cooperation across various sectors.Both the Minister and the Ambassador expressed optimism that the Coordination Council of Saudi Arabia will soon commence its work, enhancing the partnership between the two countries.The two sides agreed that bilateral political consultations will continue, business ties will further strengthen, and cooperation in multiple sectors will deepen.

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This transaction seeks to enable local micro, small, and medium-sized enterprises (MSMEs) and mid-cap companies to invest in growth, improve competitiveness, and implement greener and sustainable business practices. At least 20% of the loan will be directed toward green investments, and part of the financing will be made available in local currency to protect the MSMEs against currency risks.Hovhannes Toroyan, Ameriabank’s CFO, commented: “We are pleased to partner with the European Investment Bank to reaffirm our commitment to supporting micro, small, and medium-sized enterprises (MSMEs) in Armenia. This collaboration will provide local businesses with affordable funding, enabling them to reach their full potential and contribute significantly to Armenia’s economic growth. As the largest lender in the Armenian economy, with a solid portfolio in green and sustainable financing, we are confident in our ability to foster a more sustainable and inclusive economic future for Armenia.”Teresa Czerwińska, EIB vice-president overseeing EIB operations in Armenia, commented: “This operation is a milestone, constituting a significant step forward in our commitment to fostering sustainable development and economic resilience, in line with both the European Union and Armenia’s priorities.”Ambassador Vassilis Maragos, Head of the EU Delegation to Armenia, ommented: “With this support to the Armenian MSMEs, we are delivering on our commitment to further support Armenian private sector and contribute to addressing the pressing need for access to finance including in local currency. This assistance is part of the European Investment Plan (EIP) for Armenia which is a comprehensive initiative aimed at fostering economic growth, sustainable development, and prosperity in the country.”Archil Gachechiladze, Bank of Georgia Group PLC’s CEO, commented: “This transaction marks another step in promoting Armenia’s dynamic, high-growth economy. As a leading banking franchise in the country, Ameriabank has actively secured funding from IFIs to empower businesses and drive positive social and environmental impact in the country. I extend my gratitude to the EIB and Ameriabank teams for their effective collaboration.”Bank of Georgia Group PLC (the “Group”) announces that its banking subsidiary in Armenia, Ameriabank CJSC (the “Bank”), has signed a US$ 200 million loan agreement with International Finance Corporation (IFC), a member of the World Bank Group. Half of this loan will be allocated to climate finance projects, a quarter to MSMEs, and another quarter to women-led MSMEs.

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The sector will contribute 570 million from the 2024 profit to the 2025 budget. The Bank of Georgia will contribute the most, up to 270 million, while TBC - up to 220 million. In total, the contribution of the two systemic banks is more than 85%.Banks, as you know, will pay taxes at an increased rate of 20% compared to last year. The consolidated net profit for 2024 is 3.097 billion GEL, and profit before tax exceeds 3.656 billion GEL.The sector is the main contributor to the budget and banks, like other companies, are required to pay profits 4 times a year (there is no restriction on filling the balance sheet ahead of schedule). According to the Tax Code, the deadline for submitting the 2024 tax return is April 1, 2025, with the profit tax distributed in 4 installments (25%+25%+25%+25%) to be paid no later than 15/05; 15/07; 15/09 and 15/12.The cumulative figure for profitable banks (13) is 3.1 billion GEL. Silkbank, which has not paid profit tax to the budget for 6 years, and 3 digital banks (Paysera Hash Bank, Pave Bank), for which 2025 is the first budget year and they will not contribute anything yet, are at a loss.Sanctioned VTB, which has suspended operations after Russia's invasion of Ukraine, will pay into the budget from its profits, along with other banks. The Russian bank's subsidiary's profit (before taxes) is 8.450 million GEL.

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“Our goal was to increase the economy from GEL 90 billion to GEL 130 billion over the next four years, aiming for an additional ₾40 billion. With the investment from the Emaar group, we can further boost our country’s economy by several billion lari”, Kobakhidze told Imedi TV.The Prime Minister highlighted the agreement, signed last week during his visit to Abu Dhabi, for a “multifunctional development project” in the Georgian capital city of Tbilisi, the Black Sea city of Batumi and the coastal town of Gonio.“We are talking about the development of two crucial infrastructure areas in Tbilisi and Adjara [region in the west], covering a total of three million square metres. This project includes not only residential zones but also enhancement of hotel infrastructure, medical facilities, sports complexes, and recreational areas”, Kobakhidze said.In addition, there will be schools, kindergartens, and shopping malls in these locations. Notably, a significant portion of the area in Tbilisi will be dedicated to green spaces and recreational facilities, with approximately 34 percent of the territory reserved for this purpose”, he added.The Prime Minister noted the project would involve local population, generating new jobs and accelerating economic growth.“both in terms of accelerating economic growth and creating new jobs. This project holds special significance for our nation”, Kobakhidze said.Highlighting the effectiveness of the Government’s economic policies, the Prime Minister attributed the “successful negotiations” to the “leadership” of Vice Prime Minister Levan Davitashvili and the “professionalism” exhibited by the Government’s economic team.The primary motivation behind this decision is our outstanding economic team. The “extraordinary management, led by [...] Davitashvili, played a crucial role in these negotiations. When you know there are professionals on the other side, your motivation to invest in that country naturally increases”, he said.“Maintaining peace, along with the appropriate policies and vision of our Government, has been a crucial factor that encouraged our friends in the UAE to make a large-scale investment in our country”, Kobakhidze added.The Prime Minister emphasised it was “impossible for anyone to consider any economic activities” in Georgia without “peace” being ensured in the country.We have actively discussed the issue of peace in the UAE with both Government and business leaders. They have a high regard for our policy focused on maintaining peace in our country and appreciate our achievements, particularly over the past few years”, he said.Kobakhidze pointed out the country’s investment climate had also played a role in attracting  the interest from Emaar.Additionally, we have an appropriate investment business environment, supported by sound legislation, including a very good, simple tax system with low taxes and a liberal economic framework. This is the second important factor that attracted this investment to our country”, he said.Finally, as [Mohamed Ali Rashed Alabbar, the Founder and Managing Director of Emaar group], mentioned, he has a strong emotional connection to Georgia and spoke particularly warmly about Tbilisi and Batumi”, the Prime Minister added.In comments on Georgian opposition’s criticism of the agreement, Kobakhidze drew parallels to the group’s project in Serbia “several years ago”, saying the opposition in the country had also initially expressed concerns about the investment “but later embraced the developments”, with “even opposition representatives purchasing flats” in the residential projects. 

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“Terror in Georgia. New wave of repression tonight, new regulations to hamper the right to demonstrate, hords of “titushkis” forces have again used non proportionate violence, blows to heads and faces, arrests. But protests continue”, she wrote. #TerrorinGeorgia New wave of repression tonight, new regulations to hamper the right to demonstrate, hords of “titushkis” forces have again used non proportionate violence, blows to heads and faces, arrests. But protests continue. pic.twitter.com/yJXXEEOV8E — Salome Zourabichvili (@Zourabichvili_S) February 2, 2025

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Total demand was 2.0x higher and the weighted average yield was fixed at 8.607%, up by 0.172ppts from previous auction held in Dec-24.The nearest treasury security auction is scheduled for February 4, 2025, where GEL 50.0mn nominal value 6-month T-bills and GEL 40.0mn nominal value 2.9-year benchmark bonds will be sold.

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As of the document, the annual inflation rate was mainly influenced by price changes for the following groups:Food and non-alcoholic beverages: the prices in the group increased by 3%, contributing 1.03 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: vegetables (13.2 percent), coffee, tea and cocoa (11.5 percent), oils and fats (10.9 percent), mineral waters, soft drinks, fruit and vegetable juices (4.8 percent), sugar, jam, honey, chocolate and confectionery (3.9 percent), fish (1.9 percent). At the same time, the prices decreased for the following subgroups: fruit and grapes (-1.3 percent), milk, cheese and eggs (-0.4 percent);Alcoholic beverages and tobacco: the prices increased by 6.2 percent, with the relevant contribution of 0.41 percentage points to the overall annual inflation rate. The prices increased for both alcoholic beverages (8.4 percent) and tobacco (3.4 percent);Miscellaneous goods and services: the prices for the group increased by 6.9 percent, contributing 0.36 percentage points to the overall index. Within the group, the prices were higher mainly for the following subgroups: personal effects n.e.c. (22.5 percent), insurance (12.9 percent), financial services n.e.c. (5.4 percent), personal care (3.9 percent);Health: the prices increased by 3.8 percent, contributing 0.34 percentage points to the overall index. The prices were higher mainly for the following subgroups: out-patient services (4.8 percent), medical products, appliances and equipment (4.5 percent);Communication: the prices decreased by 12.5 percent, contributing -0.46 percentage points to the overall index;Transport: the prices for the group decreased by 1.0 percent, contributing -0.12 percentage points to the overall index. Within the group the prices decreased for operation of personal transport equipment (-2.4 percent). At the same time, the prices increased for transport services (2.4 percent) and purchase of vehicles (0.4 percent).

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