ISET

On March 12 2018, the implementation of a capital market development strategy was evaluated during the second phase of ReforMeter.

Archil Mestvirishvili, Vice President of National Bank of Georgia, Nikoloz Gagua, Deputy Minister of Finance, Bruno Balvanera, Regional Director of EBRD, Francois Painchaud, Resident Representative of IMF in Georgia as well as stakeholders from private and financial sectors attended the discussion.

As Government research revealed, at this stage, 67.7% of the reforms have been implemented. In Phase I, this indicator was 51%.

The greatest progress was achieved in the development of legislative frameworks. Last year, together with other important activities, the German ranking agency Scope was added to the list of agencies (Moodys, S&P and Fitch) recognized by the National Bank of Georgia, which implies that the NBG will consider reliable rankings given by this body to the securities offered as collateral to the NBG. Also, the tax advantage for the so-called free-float was changed in the Tax Code and was replaced with wider advantages that are more convenient to investors. According to this advantage, capital gains are exempt from tax.

On February 19, Sandro Shelegia, an Associate Professor of Pompeu Fabra University, presented to the ISET community a study by Joshua Sherman and himself entitled “Bargaining at Retail Stores: Evidence from Vienna”.

The Associate Professor discussed the step-by-step procedures researchers had to follow to collect reliable data, and the theoretical bases upon which the truthfulness of the analyses strongly depended. The former stage posed major challenge for Shelegia and Sherman as the data they needed — such as the name, scale, and profile of the shop, the price range of the goods sold, etc. — was not available (in a structured form) in any of the existing databases. To tackle the problem, the researchers trained 12 RAs, and identified nearly 300 different retail shops throughout Vienna, Austria, and constructed the valuable database themselves.

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