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Stock market: Georgian lari

DEC. 23 2016 (The Conway Bulletin) — It’s been a rollercoaster and with all good rollercoasters after a hair-raising ride you end up where you started.

This, of course, is Georgia’s lari currency. While it hasn’t quite ended 2016 where it started, and there are a few more days to go, it has been quite a ride. The lari opened 2016 at 2.41/$. On Dec. 22, the lari was trading at 2.75/$, a slight improvement from a year-low of 2.81 on Dec. 21 after the Central Bank intervened to give its currency a bit of strength.

It’s been on the slide since June when it peaked at 2.12/$. That’s a drop of 32.5% in six months. Like I said, it’s been quite a ride.

Essentially, the lari’s problems are Emerging Market currency problems.

They have been hit by a strengthened US dollar, security wobbles and by sustained low oil prices. Chuck in the poor performance of the Russian economy and stagnant local economic growth and its easy to see why the lari has been hammered. Worse-then-expected economic data and the Georgian Central Bank’s slashing of interest rates to try to boost growth have also weighed against the it.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)f

Court in Georgia sentences two former policemen

DEC. 21 2016 (The Conway Bulletin) — A court in Tbilisi sent two former high-ranking government officials to prison for 9-1/2years for murder and perverting the course of justice. The two men, David Akha- laia and Giorgi Dgebuadze, were senior police officers in the interior ministry under the former government of Mikheil Saakashvili. The EU and the US have warned the Georgian Dream government not to politicise the justice system.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

China’s AIIB lends Azerbaijan’s SGC $600m

TBILISI, DEC. 21 2016 (The Conway Bulletin) — The China-led Asian Infrastructure Investment Bank (AIIB) pledged to lend Azerbaijan’s Southern Gas Corridor company (SGC) $600m to finance its share of the TANAP gas pipeline that will pump gas from the Caspian Sea to Europe.

The loan heaps more cash from international institutions onto the project. Media reports said that the World Bank had also pledged $800m to the project. This follows loan deals last week from the Asian Development Bank and previously from the European Bank for Reconstruction and Development (EBRD).

Announcing its loan, the AIIB said that TANAP was a vital infrastructure project.

“This crucial upgrade of energy infrastructure between Asia and Europe will further strengthen the economy of Azerbaijan while underpinning energy security in Turkey, as well as several countries in southern Europe,” a statement quoted AIIB’s vice President and chief investment officer, DJ Pandian as saying.

The World Bank also said that TANAP was vital to support.

The total cost of TANAP is slated to be between $10b and $12b. SOCAR, Azerbaijan’s energy company, owns a 58% share in the project; Turkey’s Botas owns a 30% stake and BP owns a 12% stake.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

Uzbekistan signs solar tech contract with China

DEC. 22 2016 (The Conway Bulletin) — China’s Singyes Solar Technologies won a contract to design, build and operate a 100MW solar farm in Uzbekistan, media reported. The $147m project, located near Samarkand, is the biggest overseas project won by Singyes. State- owned Uzbekenergo is the client, although the Asian Development Bank (ADB) is the main financier of the project. The ADB wants Uzbekistan to generate more of its power via renewable energy.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

Kazakh bank appoints new CEO

DEC. 20 2016 (The Conway Bulletin) — ForteBank, one of the biggest banks in Kazakhstan, appointed Magzhan Auezov, who had been CEO of Kazkommertzbank for one year until mid-April, as its new CEO. Mr Auezov, a career banker, was brought into Kazkommertzbank to oversee its merger with BTA Bank. He left Kazkommterzbank, now rebranded as QazQom, in April to head the local banking lobby group. As well as taking over as CEO of ForteBank, Mr Auezov has also been made the CEO of Kassa Nova Bank. Both banks are majority owned by Bulat Utemuratov, considered to be close to Kazakh president Nursultan Nazarbayev.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

Snow blocks main Georgia-Russia road

DEC. 16 2016 (The Conway Bulletin) — Heavy snowfall has partially blocked the main highway from Russia into Georgia. The highway crosses the Caucasus Mountains and is the main route into and out of Georgia. Media reported that lorries and vans have been banned from driving along the S-3 road from Mtskheta and Lars. A landslide blocked the road in June for three weeks, causing product shortages in Georgia and Armenia, which also depends on it for supplies.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

S. Korea increases loan to Uzbekistan

DEC. 21 2016 (The Conway Bulletin) — On a trip to Seoul, Uzbek deputy PM Rustam Azimov met with his South Korean counterpart and agreed an increase in an economic loan to Uzbekistan from South Korea to $400m from $250m. The loan has been specifically earmarked to build a new passenger terminal at Tashkent airport and to build a new data centre. South Korea has built up links with Uzbekistan through business deals.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

Georgia’s Central Bank props up lari

DEC. 20 2016 (The Conway Bulletin) — Georgia’s Central Bank sold $40m to try to stem a drop in the value of the lari, its first currency intervention since Oct. 12. In the past three months, the lari has lost around 19% of its value against the US dollar, worsening an already difficult economic outlook. In 2016, Georgia has sold $280m. The Central Bank blamed a strengthening US dollar for the lari slide.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

Azerbaijan’s SOCAR signs deal with Lotos

DEC. 22 2016 (The Conway Bulletin) — SOCAR Trading, part of the Azerbaijani state-owned energy company, has agreed to send crude oil, liquefied petroleum gas (LPG) and liquified natural gas (LNG) to Poland’s Lotos Oil, media reported. Lotos Oil is listed on the Warsaw stock exchange and is the country’s second largest oil producer. This year it also bought 2m barrels of crude oil from Iran.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)

Kazakh presenter resigns after fake news

DEC. 20 2016 (The Conway Bulletin) — Ruslan Smykov, a presenter with the Kazakh TV news channel First Channel Eurasia, resigned after he broadcast a fake news interview with a Russian TV host. It’s unclear why Mr Smykov broadcast the fake interview but the incident does highlight the weak editorial control in the Kazakh media.

ENDS

(News report from Issue No. 310, published on Dec. 23 2016)