Government Puts Forth Economic Package

Prime Minister Lado Gurgenidze has outlined a new economic package involving draft laws regulating the planned free economic zone in Poti and measures to further boost the financial sector and increase the central bank’s accountability for monetary policy.

“The National Bank will focus more on maintaining price stability and its accountability to Parliament in this respect will be increased,” PM Gurgenidze said. 

Kakha Bendukidze, the state minister for economic reforms, said the draft law stipulated that, if annual inflation reached 12%, the president of the National Bank would have to resign.

The measures aimed at boosting the financial sector involve further liberalization of legislation aimed at fostering the creation of “a financial center.” It is hoped that financial assets worth USD 10 billion can be attracted.

PM Gurgenidze also said that the creation of two funds – for future generations and for strategic development – was also planned. Budget surpluses, he said, would go to the funds. Rehabilitation costs following hypothetical Georgian reunification would be covered from the funds, the prime minister said.