The sitting of the Foreign Relations Committee

17 Jul 2014
The sitting of the Foreign Relations Committee

 

The Committee considered the annual report on State Budget 2013 by Deputy-Finance Minister, Giorgi Javakhishvili. In the mid-term period 5% GDP increase is expected, 20% export and 12% import increase, increase of foreign investments. Deficit in foreign sector decreased to 6% from 11,7% in 2013. 6.7% increase is expected for 2018. Inflation will decrease to 3.5%. Programs of Foreign Ministry for mid-term remain the same. The Committee considered the Loan Agreement (special transactions) urban service improvement investment program, project I of May 10, 2011 between Georgia and ADB signed on May 2, 2014 and Loan Agreement (special transactions) urban service improvement investment program, project II of December 1, 2011 between Georgia and ADB. The Agreement on Economic Cooperation and Development Society (PROPARCO) Establishment and Activity between Georgia and France signed on May 13, 2014 was considered. As was explained, the agreement aims at AFD and private sector development financing, establishment of PROPARCO and support thereto. Both organizations carries official support by France in 80 countries. AFD group plans to set up representation in Tbilisi. 1 agreement is signed with PROPARCO by TBC Bank in December, 2012 on loan of 20 ml. USD for healthcare, service improvement and modernization. “This organization will support cooperation between Georgia and France, will increase financial and technical support” was stated. The Committee considered the Financial Protocol between Georgia and France of May 13, 2014 concerning preferential loans for construction of urban mechanic cableway connecting Chiatura with peripheries, implying allocation of 13.2 ml. EURO lax loans for 20 years (6 lax years) with 0.17% interests. The Committee considered the changes to the Agreement of June 1, 2006 on Prevention of Double Taxing on Income and Capital between Georgia and Germany signed on March 11, 2014. Current agreement shall be revised to attract investments and enlarge economic links. The changes are to be adopted to the agreement on information exchange between Georgia and Germany and Administrative Aid.