Georgia reduces privatization plan by 20 percent

Business Materials 9 June 2010 14:32 (UTC +04:00)

Georgia, Tbilisi, June 9 / Trend, N. Kirtskhalia /

Georgia's privatization plan decreased from 210 ($1 = 1,866 lari) to 170 million lari. Kommersant radio reported that the plan was reduced according to amendments to the 2010 public budget.

Head of the Economy Ministry's Privatization Department Giorgi Bakradze said he did not initiate the move, so it is difficult for him to comment on the situation. Regarding revenues from the privatization of state property, however, he underscored that 35 million lari have already been received and the same figure is expected to hit the state budget in the near future.

According to Bakradze, three to five objects are auctioned weekly in the course of privatization. He noted high entrepreneurial activity, and said 500 objects will be auctioned by late 2010.

A few months ago, experts said the 210-million-lari privatization plan is overly optimistic. In the first quarter, only 21 million lari were received from privatization. Given the current figures for the first quarter, they now believe that 170 million lari is a more realistic figure.

The privatization plan failed in 2009. Only 30 million lari were mobilized instead of the planned 75 million lari.