Nominated Finance Minister: Economic recovery already started

Forecasted economic growth made last year is not coming to fulfillment but there are particular reasons for this, Nodar Khaduri, nominated Finance Minister said on air at TV3.

Khaduri named three reasons why the forecasted economic growth of 6 percent for 2013 failed:

1. Aggressive campaign from the oppositions side

2. Business being in anticipation of a stabilization situation in the country

3. Former governments actions which lead the business to be "filtrated like a lemon. Sorry for this kind of comparison, Khaduri added.

Mentioning an example of a Goodwill Hypermarket, Khaduri said the former government used to force businesses to take over non-performing assets or loans what usually resulted with inability of repaying them.

"We are not preparing to arrest someone, for sure, we just investigate all the cases. Unfortunately many of the people being involved with these cases are on the run from the country and cases have been filed against them. Ministry of Finance just intends to answer all those questions and make the investigation process transparent, Khaduri said.

When asked what is his economic plan of recovery in the given situation when he, as a chief financier to be of the country, is often being criticized for slow economic growth, negative economic situation, and incorrect forecasting, Khaduri said that it is not easy to make economic recovery happen taking into consideration the legacy of the former government.

"The business is trying to get out of the national shock and that is not easy. However, economic growth during the first half of current year was close to 2 percent and in October - 4.4. percent. What is more important, IMFs mission is working with us and they also confirmed that the process of economic recovery has already started in the country, number of employed people is increasing and the GDP also, Khaduri answered.

While confirming the fact that there are some problems with incomes in the state budget, nominated Finance Minister pointed out that problems with spending will not arise.

With this evenings figures, there is 290 million GEL in the state budget for the planned projects and also 360 million in the deposits provided to cover the foreign debt. This is the confirmation that we will not face any fiscal danger, Khaduri explained.

According to the candidate minister, conservatively forecasted economic growth rate for the next year is 5 percent. He expressed confidence that Georgias state budget will not have any problems in 2014, despite the government needing to cover foreign debts of 1.6 billion and also take over on some more foreign debt. "Not as senseless one as the former government did, Khaduri added.

Nodar Khaduri presented his action plan to the finance and budgetary committee of the parliament and answered PMs questions. Finally, the committee supported Khaduris candidacy on the post of the Finance Minister with six in favor, four against.

The parliament will vote in the new governments members on November 20.