Greetings!

We have to develop package to maintain and save our economy.

How those events, which are reflected in our daily life and is priority for us are related to our economy.

This crisis is considered to be the largest one during last 50 years.

50 percent of Ukrainian heavy industry is terminated; they have pensions and income debt almost by 15-17 percent.

Income debt in Russia exceeded 13 percent and Russian economists say that Russia has never experienced such a fall of production like now, not even in 90ies.

The finance sector has collapsed in Latvia; other Baltic countries have the same problems.

There are serious financial problems in Turkey and Hungary.

In 90ies we went through a very hard period of time and crisis, but there was not crisis around the word that time.

After the crisis in 1992-1993 the finance and energy systems, statehood basis experienced a serious clash in Georgia.

This crisis hit Russia in 1998, then all of this hit Georgian finance system and economy has stopped for several more years.

In 1990s, we did not benefit from the world economy, but opposite of world economy tendencies, everything was bad in Georgia.

Now because of this, what we have reached within the last four years, we now have to build immune system towards what is going in the rest of the world.

First issue-because we invested more than 280 million dollars in the energetic field of Georgia, we eradicated corruption from this field, because heat and hydroelectric power plants were built, we have enough power supply to get us well through the winter.

We have a five year contract with Azerbaijan for providing us with gas supply.

Second issue - system of finances and economy.

Even during the difficult days of the war, we continued to give out salaries and pensions.

All bases exist to ensure that we do not have any problems concerning this issue next year.

Aside from this, social budget is increasing, which means that in 2005-2008 we doubled social aid.

This is not enough for improving the conditions of our people, but it is a statement indicating that our State spends all that is available to assist those that are socially unprotected.

Nothing similar to Eastern Europe or Ukraine is taking place in Georgia.

Georgian banks increased credit costs, which hits our industries hard, though similar things are taking place everywhere. In Ukraine, you cannot even take out your own money from the bank without a bribe.

In Russia, at times, there is an 80% tax charge to take out your own money. In Georgia, bank system was spared and it continues to function.

Within the first 90 days of the next year, as a result of financial credits and in flow of money, I expect banks to be able to start giving out credits again.

These are main bases that economy has today.

What is my faith and prognosis?

If we continue our correct actions, the first few months of the next year will be difficult for economy, and then it will start to grow.

What gives me bases for this - the shift of our economy, preserving investments and correct financial credit politics.

For example we are decreasing income tax by 5%, through which we are returning 250 million lari to business. 500 million lari was spent on building roads; several hundred million lari is being invested in agriculture, in the sectors where it is necessary to find employment for people. .

Next year, we will bring in even more tractors, and the effect that we had this year from tractor program should increase next year.

All this is being put into place in order to strengthen the economy of Georgia in the long run. These are roads, we should be able to take a highway to Batumi by 2012, and we are building Gombori, Javakheti, and 200 big village roads.

Everywhere the road goes, markets follow, which means opening up of work places, less social strain for people of lower social-economic status.

Georgian government should work especially hard during these difficult conditions.

During this enormous crisis, our main mission is to preserve work places and save our economy. Our next stage mission is calculated for future perspectives of Georgia.

Aside from this, we need to actively involve Georgian public in all this and engage in dialogue with them.

I am glad our meeting today, exchange of information, and our dialogue coincided with the day of St. Barbare. I hope this will take place more frequently.

Press Office
of the President of Georgia