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Giorgi Kvirikashvili: Decrease in Greek Remittances is Not That Significant

The temporary closure of banks in Greece will not have a significant impact on the Georgian economy, according to the Minister of Economy and Sustainable Development of Georgia Giorgi Kvirikashvili. The minister told the press yesterday that if  the subsequent events in Greece developed in a stable manner, a one-week halt of the local banks would not have such a significant effect on the Georgian economy.

“Taking into consideration the measures taken in many directions, including in terms of privatization, it can be said that the overall amount of reduced remittances from Greece is not a significant figure” Vice Prime Minister, Minister of Economy and Sustainable Development of Georgia said while talking to journalists. The Media representatives were interested what influences the reduced remittances from Greece will have on Georgia’s economy. 

“In January-May net remittances from Greece declined by about 18%. In the course of five months, we are in a loss of about $15-16 million USD and the loss amounts to around $2.3 million USD in May compared to the same period of the previous year. However, I would like to mention one more time that it is not a significant figure considering the measures taken in various directions, including in terms of privatization” Giorgi Kvirikashvili said.

According to the Vice Prime Minister, the temporal closure of banks for 5 days or a week should not have a significant effect if subsequent events develop normally. “As for the practice of remittances, they are transferred, in general, once a month or once in three month time. Everything depends on how subsequent events will develop in Greece in the short-term period.