Tag Archives: Georgia

IFC and ADB issue lari-denominated bonds

FEB. 25 2015 (The Conway Bulletin) — Two major inter-governmental financial organisations — the Asian Development Bank and the International Finance Corporation (IFC) — have issued lari-denominated bonds for the first time.

The IFC, which is part of the World Bank, issued a 30m lari ($13.2m) bond with an initial yield of 6.924% and the Asian Development Bank issued a 100m lari ($44.2m) bond with a floating yield.

The idea behind the issues is to help boost the Georgian capital markets and to support small businesses.

In a statement, Pierre Van Peteghem, treasury of the Asian Development Bank said: “This bond — the largest by a foreign issuer — will provide a key market benchmark and could encourage more borrowers, both domestic and foreign, to tap the Georgian bond market.”

The ADB explained that profit from the bonds would be given to TBC Bank to lend out to small and medium sized enterprises.

And they need all the help they can get at the moment.

Like its neighbours in the South Caucasus, Georgia is struggling to deal with the fallout from the economic turbulence in Russia. Its lari currency is losing value, making lari-denominated bonds a risky investment.

Still, the drive by the IFC and the ADB to sell lari denominated bonds is a boost for the ailing currency. It also shows confidence in its future. It remains to be seen if the market also holds the same confidence in the lari currency.
ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 220, published on Feb. 25 2015)

Georgia invites Poroshenko to visit

FEB. 23 2015 (The Conway Bulletin) — Georgia’s president Giorgi Margvelashvili invited his Ukrainian counterpart Petro Poroshenko to visit Tbilisi, a show of support for Ukraine’s pro-West government in their battle with Russia-backed rebels. Georgia has been trying to mend damaged relations with Russia.
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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 220, published on Feb. 25 2015)

Georgia growth rate is halved

FEB. 23 2015 (The Conway Bulletin) — In an interview with Reuters news agency, Georgia’s economy minister Georgy Kvirikasvili said he may halve the country’s projected economic growth to 2.5% this year. Mr Kvirikasvili said the side-effects of Ukraine’s civil war and the sanctions on Russia had hurt Georgia’s economy.
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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 220, published on Feb. 25 2015)

Georgia CBank props up lari

FEB. 24 2015 (The Conway Bulletin) — In an effort to stop its currency from sliding further, the Georgian Central Bank said it had sold another $40m of its reserves. This is the third time this month it has sold US dollar reserves to prop up its lari currency.
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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 220, published on Feb. 25 2015)

US mission to the S.Caucasus

FEB. 16 2015 (The Conway Bulletin) — US Assistant Secretary of State Victoria Nuland is due to travel to Yerevan and Baku over the next few days to discuss their relations with Washington and how to reduce rising tension along the disputed region of Nagorno-Karabakh. Ms Nuland’s trip is part of a wider South Caucasus mission.
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(News report from Issue No. 219, published on Feb. 18 2015)

Georgia Central Bank increases rates

FEB. 11 2015 (The Conway Bulletin) — As expected, Georgia’s Central Bank increased its key interest rate by 50 basis points to 4.5% to try and dampen inflation. The Georgian lari has lost 8.5% of its value against the US dollar this year, increasing inflationary pressures.
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(News report from Issue No. 219, published on Feb. 18 2015)

Georgia exports drop

FEB. 13 2015 (The Conway Bulletin) — Georgia’s foreign trade dropped by 9% in January compared to a year earlier, the national statistics office said. It blamed the Ukrainian civil war and the fall in the rouble for reducing demand for Georgia’s key exports — wine, water and citrus fruits.
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(News report from Issue No. 219, published on Feb. 18 2015)

Ukraine appoints Saakashvili

>>Appointment angers Tbilisi who want him extradited>>

FEB. 13 2015 (The Conway Bulletin) — In a surprise move, Ukrainian President Petro Poroshenko appointed Russia’s arch foe, Mikheil Saakashvili, as an adviser and an official overseas representative of the government.

The appointment has irritated Georgia’s government who want Mr Saakashvili, a former Georgian president, extradited.
They accuse him of various crimes and have placed him on the Interpol wanted list. Since leaving office in 2013, Mr Saakashvili has lived in New York.

“For a long time, we’ve been thinking how to use the knowledge, experience and unique know-how of Mikheil Saakashvili in the best way,” Mr Poroshenko’s press service said. “Until recently, Mikheil was, in fact, a freelance consultant of Ukraine on reforms. And now, finally, he gets official status.”

His arch rival in Georgia, the head of the coalition which chased him from power after nearly 10 years, Bidzina Ivanishvili, saw it differently. He said several members of Mr Saakashvili’s government now worked in Ukraine and that most are wanted on corruption charges in Tbilisi.

“Now they have found asylum in Ukraine, but let us wish for them that events develop in a better way there,” he said in an interview with Georgian media.

The appointment of Mr Saakashvili to the Ukraine government will also anger Russian president Vladimir Putin. The men were locked in a personal battle during their presidencies which culminated in a brief war in 2008.
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(News report from Issue No. 219, published on Feb. 18 2015)

Tbilisi official arrested

FEB. 12 2015 (The Conway Bulletin) — The Georgian interior ministry said it arrested Jokia Bodokia, a senior official in the Tbilisi city government, for taking a bribe. PM Irakli Garibashvili has said that he wants to make wiping out corruption a priority. Opposition said he is using the purge to attack his enemies.
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(News report from Issue No. 219, published on Feb. 18 2015)

Putin ratifies alliance with Abkhazia

FEB. 4 2015 (The Conway Bulletin) — Russian president Vladimir Putin ratified Russia’s alliance with Abkhazia, a Georgian rebel region. The strategic alliance, which has been criticised by Georgia, means Russia will likely send more military kit to Abkhazia.
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(News report from Issue No. 218, published on Feb. 11 2015)