Home / Business / Development Sector Faced Serious Challenges in 2015: Interview With Irakli Rostomashvili
Development Sector

Development Sector Faced Serious Challenges in 2015: Interview With Irakli Rostomashvili

Irakli Rostomashvili, the head of the Georgian Association of Developers reviews the year of 2015 for development sector. 

How would you appraise the year of 2015 for the development sector?

– The national currency volatility has badly affected the sector in terms of sales. We had serious slowdowns, upturns, though,

Finally, the currency devaluation has negatively influenced the field.

The development of our sector immediately depends on the state economy realities. The social and economic conditions of our population are also directly reflected on the field.

Have these negative tendencies narrowed investment inflows?

– The investor is a body that puts money to later get it back. Naturally, investors see there are financial problems in the country and they abstain to take bold steps. People with 3000 GEL monthly salaries used to pay 600 USD installments a month (1000 GEL) for new apartments, but the currency volatility made our the clients pay 300 GEL higher installments and this problem deteriorate the solvency of our population.

– Would you recall any specific events, including at the legislative level, which have either promoted or hindered the sector’s development? The issue was of construction amnesty.

-There is nothing important to recall.As to the construction amnesty, these norms were not enforced in reality. 

I do not know the reasons. The Revenue Service is discussing the issue and no important decision has been taken in this respect yet. And this unclearness is bad. The process is protracted very long. The building code was also being developed, but the document has not come into force yet.

What should we expect in 2016?

 I personally expect something will change positively in this country, namely, the justice will reign. I have much expectation.