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Georgian investors’ trust fading away2010-09-01 18:25
Not only does Georgia attract new investors this year; it is also losing the old ones' trust. The country is facing the slump of investments, including those made by Tbilisi's trade partners. Ministry of Economy does not see anything wrong in the invested means withdrawal, attributing it to the environment unstableness. However, this notion logically fits in with the general economic context characterized by strong investment downturn. In the opinion of many experts, the reason lies in the constant talks about the war and Saakashvili's arming policy.
This spring, Georgian Ambassador to Kazakhstan Pata Kalandadze vowed and declared that Astana has got no desire to conceal its investments. The irony of it is that the leading position in investments withdrawal belongs to Kazakhstan, which used to be one of Georgia's largest trade partnerships. Kazakh businessmen who earlier sponsored Sakartvelo's tourism, resorts and communication have taken over 14 million dollars out of the county in the first quarter of this year. It was done against the background of the Georgian government's loud statements that the number of tourists in Georgia will soon become equal to the amount of residents.
Virgin Islands are the second to withdraw investments from Georgia; they are one of the world's basic offshore center, and China goes third in the list.
However, the Ministry of Economy headed by a young optimistic lady sees nothing wrong in the capital outflow. Head of Investments Agency Irakly Matkava reminded that investment outflow and inflow go in turn in the investment process, while the current situation, in his opinion, is explained by private factors, such as the shutdown of a project by an investor, selling of business and problems inside the company. However, the administration did not name the branches from which investments are withdrawn.
Felix Stanevsky, Head of Caucasian Department of CIS Countries Institute believes that the outflow of money earlier invested in the Georgian economy is symptomatic and is connected with the government's arming policy: