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Whether or not 25% of Georgian Railway will be Sold out?

To stabilize the exchange rate of the Georgian lari, the government has put several objects for privatization. Georgian Railway LLC is not included in the list yet, however, there has been a lot of talk around  the company .

Economy Minister Giorgi Kvirikashvili said that for quoting it would be good if at least 25% of “Georgian Railway” were sold.  However, the Minister explains that this issue should be approached with caution while  selecting  the possible owners.

“The railway is a transport policy instrument in  the hands of the government, so we should be very careful with this issue, but it does not mean that a minority stake in this company will not be sold”, – said the Vice Premier.

Members of the parliamentary majority are  not against the alienation of 25% from  100% share of the strategic object.

According to  Temur Maisuradze,  Deputy Chairman of  the Sector Economy and Economic Policy Committee, 25% is not the amount which would endanger the state.However, the MP believes  if  the object is sold ,  the received funds  must be used not for the lari’s  strengthening  , but for the modernization of the railway.

As for the buyer’s selection, Maisuradze says that this process is important when selling  any amount of interest, because any purchaser enters  the market with a particular purpose and intent.

The Budget and Finance Committee member Goderdzi Bukia says that not only the railway, but any other object  should be privatized to develop the private sector.
“It happens all over the world. Everything is strategic for the country that deals with the country’s safety and security, but isn’t the economy strategic? It is the main strategy. Economic development is not possible without the private sector “, – Bukia notes.

In his words, where and how the money from privatization will be spent, it’s up to the government.

By the way, this is not the first time the authorities consider the alienation of the Georgian railway. This issue was discussed by the  “National Movement” at the beginning of 2012. Then the government planned to sell the shares on  the London Stock Exchange, however,  later  changed their  mind. Reuters  reports that due to difficult market conditions, the company will not be able to  sell the securities on the LSE.