He said the moves should lift Georgia’s expanding economy, but said government entities couldn’t want to raise cash by issuing Eurobonds.
Instead, Kumsishvili said hello was considering initial public offerings (IPO) of 25 % stakes while in the state Energy Corporation (GOGC) additionally, the state railways monopoly. The first kind could well be mentioned in London, aforementioned in Shanghai.
The ex-Soviet republic’s economy, who has experienced falling exports and remittances plus a plunge while in the Russian rouble, expanded by 2.5 % during the first 10 months of the season, weighed against a similar period yearly before, when growth was running at 2.8 per cent.
The country, that is certainly crisscrossed by pipelines taking Caspian oil and gas from Azerbaijan to Europe, has cut its economic growth forecast for 2016 to 2.7 per cent from three percent but expects its economy to inflate by 4 % next year.
“We be ready to attract $1.63 billion [Dh5.98 billion]-$1.64 billion this holiday season and we all expect this indicator to go up by 7-8 per cent in 2017,” Kumsishvili, who may be plus a stylish vice premier, said.
Foreign direct investment (FDI) in Georgia rose by 5 per cent within the first nine months of the year weighed against identical period in 2015 to realize $1.298 billion, preliminary statistics office data showed earlier this month, with Azerbaijan the main investor as well as the transport and communications sectors the biggest beneficiaries.
Kumsishvili declared that the existing liberal economic environment and planned tax reforms would drive foreign investment.
“When we consult investors, they assert that reform has to be a big benefit for him or her including a huge advantage for Georgia,” the finance minister said.
Georgia stop taxing corporate undistributed profits, reinvested or retained, from January 1, 2017 and promises to tax dividends instead.
The government estimates revenues from corporate profit tax will decline by 500 million lari ($187 million) buy and offers cover this gap by revenues with increased excise levies on tobacco, cars and oil products and with taxes on gambling from January 1, 2017.
The IMF is sceptical regarding the corporate tax reform and projects it might knock 1.5 % off Georgian GDP growth, creating a wider fiscal deficit.
“We don’t fall for so … The increase in excise tax will offset losses about 500 million lari will throughout the market,” Kumsishvili said.
“As to your fiscal deficit, it will likely be right down to 4.1 per-cent the coming year from 4.4 per-cent expected in 2016.” He explained which the next year’s fiscal deficit was to be protected by internal and external borrowing along with by arises from privatisations.
Kumsishvili said that the us government was considering launching IPOs on foreign stock markets with the state-owned energy corporation, GOGC, as well as for Georgia’s Railway.
“We will perform it when market conditions will likely be befitting for the position … It could be in a year or perhaps per year . 5,” he said.
The GOGC, which operates the North-South gas pipeline transporting gas from Russia to Armenia via Georgia, issued $250 million of that first five-year Eurobonds in 2012 as well as the same amount again in April 2016. Goldman Sachs and J.P. Morgan acted as lead managers.
Georgia’s state railways monopoly, which is associated with developing new routes much like the Baku-Tbilisi-Kars project providing a corridor with the Caspian Sea through Azerbaijan and Georgia to Turkey, postponed a planned London listing next year resulting from volatile markets.