2020-11-26
Situation is challenging, though everything is manageable and similar to the times before August, when all of us managed to strike a balance together with our citizens, medical doctors and police in essence in the best possible manner between economic interests of the country and human health, we should return to those indicators. It was announced by Giorgi Gakharia, Prime Minister of Georgia at a press-briefing following a meeting of the Inter-Agency Coordination Council held today at the Government Administration.
As clarified by Giorgi Gakharia, the Government of Georgia always chose to strike a balance between the management of the pandemic and economic sustainability, which later grew into an adaptation and this policy or strategy is effectively pursued further.
"We had a meeting of the Coordination Council today, which considered the current epidemic and economic situation in the country. We have been working for over a week on the design of certain measures, which I wish to elaborate today. Though, before I list them specifically, I need to say that the situation is not easy at all. It is challenging, though remains manageable and similar to the times before August, when all of us together managed to strike a balance together with our citizens, medical doctors and police in essence in the best possible manner between economic interests of the country and human health, we should return to those indicators.
You may well be aware that a record-high community transfer rate has been witnessed globally, especially concentrating in Europe. All of us need to understand it well that when I speak of striking a balance, our choice in the management of the pandemic has always been an equilibrium with economic sustainability, which later grew into an adaptation and this policy or strategy is effectively pursued further" stated Giorgi Gakharia.
In the opinion of the Head of Government of Georgia, one more variable was added to the equilibrium in September. Apart from the citizen care and economic interests of the country, the political process was added as a third significant component and the Government had to compromise to a certain extent.
"Political process is an additional variable in this equation and in the given circumstances we had to make a certain compromise in the form of a democratic process, which should have developed to the first round of elections, followed with the second one and then to the freedom of expression manifested by our citizens several times in the streets of our country and cities. Government of Georgia, our citizens, medical doctors and all of us in general are tasked with returning the country to the community transfer rate that we had before August and that made us stand out compared to other countries of Europe. You may well be aware that Georgia was one of the best countries in terms of managing the pandemic in the referred period. Apart from anything else, it is our responsibility to do it for a quick recovery of the economy, which we should essentially do" noted Giorgi Gakharia.
According to the Prime Minister of Georgia, several options are in the toolkit. Primarily, it is a complete lockdown. Secondly, it is a life continuing within the existing restrictions. Thirdly, it is the introduction of more effective precision-targeted restrictions. As the Head of Government of Georgia noted, when precision-targeted restrictions are considered everyone should understand that most effective use of the scarce resources is the prime goal in the country leading to a minor harm to the economy and maximum outcome in terms of a declining community transfer rate at the same time.
"When we introduced the first wave of restrictions, nobody in the world had any idea of the timeline of the pandemic. What we discussed today is a specific plan of the Government of Georgia designed for the upcoming 2 months with specific dates and measures to be taken. This plan is based on discussions, which engaged wider society. That is why it became so accessible through the internet yesterday. Process engaged businesses, medical doctors, civil society representatives, international experts and many people, including our international advisers" noted the Prime Minister of Georgia.
As the Head of Government of Georgia explained, restrictive measures are aimed at stopping the community transfer rate.
"We should not be illusioned by believing that our plan for the upcoming two months will reduce the community transfer rate to hundred or dozen cases a day. These measures are predominantly aimed at reducing the community transfer rate and number of cases detected daily, which will ultimately reduce the pressure on the healthcare system and ultimately drop the mortality rate. We are currently administering 15 000 - 16 000 tests a day. Completely new clinical management plan has been developed on top of all that. Several new healthcare facilities are engaged in the management of the pandemic, which were commissioned in summer - Batumi Hospital of Infectious Diseases, Rukhi Clinic and others. If there were 5 healthcare facilities engaged in the management of the first wave, we currently have over 80. Most important of all is the new plan of clinical management, when our medical doctors have a greater knowledge of COVID-19 and of its management methods. Hence, we allowed ourselves to call this phase an adaptation, as it is an optimal strategy to go through this epidemic and economic crisis with minor losses given the size and system of our economy and healthcare system" stated Giorgi Gakharia.
The Prime Minister of Georgia believes that this is a global crisis, which will not be defeated by any country on the planet on its own and no one will exit it without losses.
"Our goal is to use our scarce resources with maximum effectiveness so that the economy and human health get minor harm. Along with all that, we had to enter an active political process and this is a significant variable for the democratic development of our country. You may well be aware that only a few countries - especially in Europe - held elections of similar scale and magnitude" noted Giorgi Gakharia.
According to the Head of Government of Georgia, a specific plan for the upcoming two months will commence on November 28, 2020 and end on February 1, 2021. It covers December and January, which means that all these restrictions will be temporary and the Special Program for Phase 4 designed by the Government of Georgia entails support for businesses and citizens towards specific social needs, thereby implying these specific restrictions.
As Giorgi Gakharia explained, the support plan envisages a systemic economic crisis as well, which will continue in 2021.
"From November 28 through December 24, 2020 eight large cities of Georgia - Tbilisi, Telavi, Batumi, Kutaisi, Rustavi, Gori, Poti, Zugdidi and - let me underline - skiing resorts - Bakuriani, Gudauri, Mestia and Goderdzi, along with all types of fairs and trade sector will move towards distance mode of work. Municipal and inter-city transport will be suspended. These are the main restrictions, which we are introducing. Similar restrictions will be observed in January 2021 as well - for a while.
Fruit and vegetable markets, grocery stores, pet stores, household hygiene stores, pharmacies, banks, all and any type of industrial production, construction and systemic utilities of all types - water, power energy, natural gas - will continue their operation without any restriction in the indicated period of time. This provision only applies to retail trade. Healthcare sector continues to operate at full scale, as do the beauty parlors. Meanwhile and till the end of February it is a strict recommendation of the Government of Georgia and epidemiologists of the country to try our best by keeping family members aged over 70 at home most of the time. It will demonstrate your care for their health and life. Of course, we recommend all companies to move their staff to a distance mode of work. In the indicated period 80% of public service staff will move to remote work" noted Giorgi Gakharia.
Taking into account the festive season, eight large cities of the country - Tbilisi, Batumi, Kutaisi, Rustavi, Gori, Poti, Zugdidi and Telavi - will have restriction lifted on any and all types of restrictions from December 24, 2020 through January 2, 2021.
"Life continues irrespective of the pandemic and we will not bypass or forget the festive season by taking into account the interests of our citizens in the first place, though we should also consider the economic interests of the country. That is why, fairs, shopping malls and retail shops will operate as usual in 8 large cities of the country from December 24, 2020 through January 2, 2021. Nevertheless, adherence to epidemic safety rules defined by the healthcare system of the country will be tightly controlled. It is not a reprimand. It applies to all. Even today a lot of restrictions are set, which are neglected or forgotten. That is why, Ministries of Interior and Health (respective subsidiaries) have been instructed today to carry out the tightest control over compliance with these restrictions. It is a compromise I was referring to when an additional - third - political component was added to our balancing task" noted the Prime Minister of Georgia.
Giorgi Gakharia explained that municipal transport will be resumed in the indicated period of time, however current restrictions on the mobility enforced from 22:00 to 05:00 will be valid from 21:00 to 05:00 from November 28, 2020.
"Restriction on mobility, which will be enforced for the entire 2 months will be valid from 21:00 to 05:00. Of course, we will lift it on New Year's Eve and on the night of Orthodox Christmas. These two occasions will have no nation-wide restriction on mobility. I also want to say that restriction from 21:00 to 05:00 will apply to the entire country, rather than within cities" stated the Head of Government of Georgia.
According to the Prime Minister of Georgia, there are several industries within these two months that will fall under complete suspension of operation. Restaurants are among them, which will operate only through a delivery service. Fitness clubs, gyms and swimming pools fall under the complete suspension as well.
"Adamant recommendation of the Government of Georgia is to move company staff to a distance mode of work, while we will be putting civil servants under a mandatory regime of teleworking. This is the compromise leading to a minor harm to the economy, however it should produce a maximum epidemic outcome within the upcoming 2 months. From November 28 through December 24 we have a maximum number of precision-targeted restrictions, while giving opportunity to our citizens - catholic and orthodox Christians - to celebrate the New Year's Eve and religious festivities from December 24 through January 2, before returning back to restrictions prior to January 3-16, 2021" noted Giorgi Gakharia.
According to the Prime Minister of Georgia, public holidays and day-offs are announced to cover a period of January 3-15, 2021 to further reduce the mobility in the country.
"Hence, it is yet another set of most important decisions allowing us to let the majority of our people celebrate the festivities by planning well in advance, so that their mobility is not locked in days, but span for two or slightly more than two weeks. It is of great importance. All the restrictions will be waived after January 16, 2021. Only those set for November 28-December 24 will remain - this time on weekends. It is all relating to restrictions, which is of conceptual importance and should have a huge impact on curbing the community transfer rate. They include additional restrictions in the education sector, along with certain restrictions for individual municipalities and additional precision-targeted restrictions" noted Giorgi Gakharia.
Considering the fact that retail trade, fairs, shopping malls, stores and shops are going to be restricted for several weeks and as a lot of our citizens are employed there, Government of Georgia is setting targeted social assistance of the type we had during the first wave for the self-employed people - 300 GEL as a one-off allowance. In addition, the Prime Minister of Georgia noted that the Government will help each of these people within the referred sector in deferring the loan service payments, if they have current obligations towards their service banks.
"As for the fourth phase of social and business support designed by the Government of Georgia - our previous three phases were most targeted. If within the first wave of the pandemic we did not know the scale and magnitude of the pandemic and resulting economic crisis, we tried to cover all social groups. Now, we are singling out social support beneficiaries, though a principle of coverage is maintained. As we are suspending the retail trade, shopping malls, shops and stores for several weeks, we understand that a lot of people are employed there. We are introducing the same type of targeted social assistance, as we had for the self-employed people during the first wave of the pandemic. We will be paying 300 GEL as a one-off allowance. In collaboration with their employers, we have started to count the number of potential beneficiaries. During the first wave of the pandemic 300 GEL offered to the informal sector covered 250 000 people. This time, as we are narrowing the scope, we estimate that about 100 000 or 120 000 people will benefit" noted Giorgi Gakharia.
In the opinion of the Head of Government of Georgia, the global economic crisis will continue and will be quite daunting in 2021. Hence, the impact of the economic crisis is in essence divided among every citizen and majority of social groups.
"That is why we confirm the decision made by the Government of Georgia to cover the cost of consumed power energy and natural gas during the upcoming 4 months in the country. In addition, a targeted social security program, which worked very well during the first wave in the case of people engaged in the formal sector, who lost their jobs due to the pandemic received 1 200 GEL during 6 months. We will be resuming the initiative from January 1, 2021 and will be valid for 6 more months. All those people, who lost their jobs during this crisis will apply for state support and will receive 1 200 GEL as a social allowance in monthly installments of 200 GEL. During the first wave of the pandemic 125 000 people benefited from the initiative. We believe that this time again the same number of people will benefit. In addition, we have a rather high number of socially vulnerable people in the country with a subsistence rating score from 65 000 through 100 000. These are the most susceptible to the current and similar crisis, falling under the risk of losing informal employment or short-term income. We are resuming this program and every household with a subsistence rating score from 65 000 through 100 000 will get 100 GEL a month from the State Budget for a period of 6 months, similar to what was paid during the first wave of the pandemic. Back then 72 000 households benefited from the initiative. In addition, households with a subsistence rating scope from 0 through 100 000 with 3 or more children below the age of 16 years will get 100 GEL a month from the State Budget for a period of 6 months.
In addition, persons with disabilities aged below 18 years and those with acute disabilities will be getting 100 GEL a month for a period of 6 months. It will apply to 43 000 people" noted Giorgi Gakharia.
In addition, the Prime Minister of Georgia believes the difference of loan service payments to be of principal importance for those companies that will fall under the restrictions and state support will be provided to all sole traders and individuals, who have such needs.
The Head of Government of Georgia also spoke about measures that will be carried out by the authorities in support of businesses.
"One of the most effective proposals and support initiatives for businesses is to subsidize the personal income tax (PIT) for their staff in the portion of 750 GEL from a monthly salary of 1 500 GEL, as we will be paying this portion of the PIT. During the previous wave of the pandemic, 33 000 companies benefited from this initiative and it applied to 425 000 employees. It was about 260 million GEL. We will be continuing with this initiative for 6 upcoming months. Property tax will be waived from entities engaged in the tourism sector during 2021. They will be entirely liberated from this tax liability. PIT was deferred during 4 months of 2020 in the tourism sector. We took a decision to waive this tax liability in the tourism sector entirely. Besides, you may well be aware that restaurants are suffering badly along with the tourism sector. That is why, loan interest subsidies will apply to restaurants as well. Every company in the sector with a bank liability will be subsidized in the portion of interest payments from the State Budget during the upcoming 6 months. Support Portfolio of Phase 4 as a targeted social and business support will cost the State 1.1 billion GEL. We understand that this is the least we can do today" noted Giorgi Gakharia.
In addition, Prime Minister of Georgia explained that legally speaking these restrictions may formally be enforced by the Government of Georgia till January 1, 2021 as the applicable provision of the Law on Public Health is valid till January 1.
"In addition, the State Budget needs to be endorsed for the upcoming year. I am confident that when the new convocation of the parliament will gather, we will do all these quickly and will have a 2-Month-Long Plan, which will need to stabilize the community transfer rate in the country to thereby regain the potential of quick economic growth that we had in Spring. Even today, all international organizations confirm that the economy of Georgia has the highest potential to rebound quickly in the post-crisis stage" noted the Prime Minister of Georgia.
Afterwards, the Head of Government of Georgia answered the questions posed by journalists at the press-briefing held today.
Press Service of the Government Administration