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Despite the Stabilization of the Lari, Businessmen are not Going to Continue the Suspended Projects

Despite Stabilization of Lari, Businessmen are not Going to Resume Suspended Projects

Georgian business companies are not going to resume their suspended projects, despite the recent stabilization of national currency

One year has passed since fluctuations in the value of the Georgia lari had started. In the last few weeks, the national currency has reached a new equilibrium after sharp fluctuations. Nevertheless, the business is still hesitant and is not going to take concrete steps in terms of investing.

Businessman Lasha Papashvili, who suspended several projects because of the devaluation, told CBW that the national currency has stabilized, but enough time has not passed yet to continue work on business development.

As Papashvili says, the government must signal that the situation will be more or less stable which will allow the businessman to take further steps.

PSP pharmaceutical company founder Kakha  Okriashvili  also suspended his large investment plans due to the lari depreciation. At this stage, he is not going to launch the two new projects – drug manufacturing plant’s expansion and construction of a new hospital for two reasons:

“The main cause is the depreciation of the national currency. The second reason is the statements made by the Minister of Health, who  lobbies for obscure foreign companies. They  abstrain from contact with our company, which is the biggest investor in local economy. Due to this, we refrain from investing and will wait for a further development of events”, Okriashvili says.

PSP founder has some questions to the Ministry of Health about the company the Ministry is lobbying to bring into the Georgian market and Global Alliance which gives healthcare advice to the Ministry.

Anzor Kokoladze, a businessman and Techno Boom founder, has a different opinion. The businessman says that in spite of the depreciation of lari, his company did not stop working on the expansion of the business and is currently in talks with new investors.

Kokoladze notes that the businessmen halted investments because  they do not have the appropriate resources and not because they avoid spending money.

As for the expansion, Techno Boom founder needs additional investments to open a large household appliances hypermarket. For this purpose, the talks with two local and foreign investors are in progress.