Government accelerates privatisations

During the first six months of 2010 the Ministry of economy sold assets and accumulated USD 36 million. The country must sell properties worth USD 134 million to reach the figure designated in the state budget – USD 170 million.

In 2009 Ministry received USD 75 million from the sale of properties – a shortfall, which most probably led to the speedy change of the ministers of economy. Thus, the newly appointed Vera Kobalia has a serious challenge in front of her. The ministry reports that in July it received an extra USD 12 million from privatisations. Independent analysts think that the post Rose Revolution administration has already sold many large properties rather too cheaply, while the smaller ones seem not to be that attractive.

The government is thinking of offering for sale objects which were previously included in the list of strategically important objects. Now some of the items on that list could be privatized, for instance, some parts of forests.

PM Nika Gilauri has been promoting an initiative of closer cooperation between the government and real estate agencies, with the latter attracting investors for the government.