On July 18, 2011, PM Nika Gilauri, together with the President of NBG and the Minister of Finance met with representatives of the private sector at Sheraton Metechi Palace Hotel.
Prior to the meeting, the Prime Minister stated: “At the beginning of the year, we presented a ten-point strategic development plan for modernization and employment. This plan covers several aspects: macroeconomic stability, development of agriculture and tourism. We would like to meet with the public once every six months, to submit our action plan for the next six months.” At the meeting the Prime Minister pointed out several results achieved during the last six months.
Firstly, Gilauri noted that the problem of foreign loan has been solved. “We issued 10-year Eurobonds in spring, which was a very successful transaction as they are now traded better than bonds of European countries, including Italian bonds.”
Another remarkable fact is that that the budget deficit has been reduced. Year started with budget deficit of 4.5% and it is reduced to 3.7%. According to the Prime Minister it is very important that the government is capable to reduce budget deficit promptly, in a short period of time.
The third achievement discussed was inflation, which was of greatest concern for the public. Maximum level of inflation equaled 14.3% and was increasing month after month. Recently inflation has decreased for the first time. Last month, inflation equaled 10 percent. That is a very positive change. Government hopes that in the nearest months, inflation willbe expressed in a one-figure number.
At the end of the meeting Nika Gilauri emphasized the importance of macroeconomic stability and the Act of Economic Freedom confirmed by the Parliament two weeks ago. “This
is of great importance for future macroeconomic development of the country, for investors and for increasing employment level in the country.” noted the Prime Minister. According to the Act of Economic Freedom the change to the tax policy of Georgia is made through the referendum, meaning that the countrys population is voting for the increase of taxes, therefore from the government side presenting such an act is a kind of a guarantee that the taxes in the country will
not increase in future.
