Georgy Kalatozishvili, Tbilisi. Exclusively to Vestnik Kavkaza
For the first time after the dissolution of the Soviet Union, the Georgian authorities decided to found a state bank for providing targeted budget investments and management of state assets. The initiative by Garibashvili’s government has already caused ambiguous reaction by experts. The ruling coalition can’t clearly explain either a duty of the new bank or reasonability of its establishing, while the country has the State Partnership Fund and the private Fund of Co-Investment with the same duties.
The Financial Minister Nodar Khaduri stated that the State Bank of Development would be based on the State Partnership Fund which manages enterprises which belong to the state. It seems the new government wants to use the partnership fund as a fundament for a new financial institute. It is new for the liberal model of Georgian economy, but it is well-known for the former Soviet residents and the countries where strict state regulation of the financial investment sphere remains.
The leader of the parliamentary majority from the ruling coalition Georgian Dream, David Saganelidze, admitted that the idea of establishing such a bank emerged after his visit to China: “I conducted important meetings with the Chinese State Bank of Development. The Chinese side expressed interest in cooperation with our establishing bank,” Saganelidze stated. “The bank will be established by the end of the year. It is not a commercial structure, i.e. the SBD won’t give loans and citizens can’t have deposit accounts in it. The bank will invest into major projects.”
But there is an institute aimed at large investments in Georgia – the Fund of Co-Investment which was founded by Bidzina Ivanishvili. It was stated that about $6 billion are accumulated in the fund, but no major investments have been made yet.
Why do they need the State Bank then? It is not a national bank which deals with emission and control over the banking sphere, but the state bank with the state capital. Experts believe that establishing of such an institute is a step backward. “Is the government establishing a bank? This is Socialism!” the former president of the national bank Roman Gotsiridze says. According to him, the new structure won’t control state assets effectively, not to mention successful investments and providing innovation projects in economy.
However, the relevant draft has been already developed. It will be considered by the parliament in the nearest future. The question could be a reason for serious contradictions within the ruling coalition.
