Greetings!

First of all I apologize for meeting with you here today - on the holiday dedicated to the mother's day!

I want to say that you work hard enough and you have done a lot for this plant. But we still have to do a lot for this factory.

I would like to tell you that there is not the same situation everywhere and you know this better then me.

World is facing a great economic crisis.

I heard on TV this morning the collapse of US stock market, of the European stock market, and of course a small boat of our economy will not be defended in this huge crisis, most of big vessels are on the edge of sinking.

There are serious problems in the operation of finance institutes around the world.

Many qualified employees loose their jobs in finance sectors - we are speaking of thousands of people in Tbilisi and other cities where the banks used to operate on the full scale.

You know as well that we have problems at the real estate market - prices are decreasing and the flats are practically not sold out.

You also are familiar with the unemployment problem. Many of our citizens are not able to find stable job and to provide their families with the stable income. This is the most painful problem.

The recently formed middle class is in very hard conditions, they had planned their lives with bank credits. They were damaged the most after this financial crisis - these people used to buy their flats, cars, some other goods by credits. This is very painful for me.

In these conditions the only one and most crucial sphere for my government is economy - how to maintain existing jobs, how to create new jobs instead of the lost ones and to defend our country in the conditions of the world economic crisis.

This is why we work so much - every ministry works night and day, we have developed social boards. I have personally met Georgian experts working in world's leading financial institutes. I developed a board together with them, they will use their expertise and advise us how to solve Georgian economy.

We do much more to overcome difficulties besides this, but I want to tell you that it is impossible to do everything in one minute. It will be not be true if I tell you that everything will be fine soon. According to the evaluations of all experts they say that next 6-9 month will be extremely difficult for the whole world.

Now I believe that we have enough resources to solve Georgia's economy and it is possible to have stronger country after the world survives the global economic crisis.

It is important to have stability and calmness in country to achieve this.

This is why the mission of our government is on one hand to have stability in country and not to allow anyone to destroy this stability, and on the other hand we have to fulfill our anti crisis plan, which was developed very early, when we first noticed the upcoming global crisis.

This plan envisaged the reduction of income tax by 5 percent and we already did it. This amount will be spent on incomes or on the development of enterprises. I wish it would be spent on incomes...

Compare to many other countries we were able to maintain banking stability. For example it was possible to withdraw money from banks in Ukraine several months ago, but now they prohibited withdrawal of money for 6 months. In Russia you have to bribe someone in bank and give half of amount to withdraw your own savings.

We were able to maintain stable banking system in Georgia and it operates well.

The salaries and pensions are given out on time.

You probably remember 90ies when it was no economic crisis but our banking system practically collapsed. When we came into the leadership most pensions were frozen during 6-9 months.

We are not reducing number of our employees in the government sector. We are doing this on purpose. We are maintaining budget discipline, to make sure that pensions and salaries are given out on time.

GEL is stable, when in Ukraine they experienced 100 percent devaluation, it is 40-50 percent devaluation in Russia, in Baltic countries 34-40 percent devaluation, etc.

The prices on the medications increased unfortunately, but prices on some categories even decreased, prices on some categories are stable - so we can control this process as well.

So with these steps we are able to defend our economy from such crisis like it is in our neighboring countries, but this is not enough.

We are now fulfilling the program of stimulating our economy. We have announced state tenders worth of one billion GEL. Numbers of Georgian companies won this tenders transparently. This means that this one billion will go back to Georgian families employed within this tenders.

You manufacture your production for our people - the roads are built, the reconstruction of social installations is going on, houses are built for the IDPies.

We are intending to double this amount n the nearest future and spent 2 billion GEL for giving Georgian companies jobs, to make sure people have jobs.

It is true that some jobs are lost, but with the help of these programs we will be able to solve jobs and create more than 30 thousand new jobs.

I personally lead the economic diplomacy in various directions. I was in many countries during last several months and it is not important to travel to some summits, smile there and not achieve any specific results, but to bring money back, to attract investments.

We were able to maintain all major investment programs and continuation of those programs, when in most of the countries these programs are terminated. For example if there was no economic crisis Armenia would purchase more carriages from this plant, but investments have stopped in Armenia as well and they have no money. I am not saying anything about bigger countries.

We were able to maintain al big investment programs, for example to constructing Poti free economic zone.

I have visited United Arab Emirates recently. I wanted to make sure that their investments will not stop. I have received very interesting investment proposals in Europe recently...

But all of it is not enough for people - I know of course even after the most successful economic initiatives there is no relieve for people and they cannot notice any changes.

At the same time we have to understand that we have to fulfill social programs even when our economy is in very hard situation.

Our resources are very limited, but in this situation it is very important to take care of people.

For example you sell carriages, so money comes in the state budget and we are maintaining our state.

This means that you create goods - this is not a good will of the government, but business done by you. It is better to return money into the production back, to do more business and receive more income in future, but people need help now.

This is why we gave full insurance to more than 900 people living below the edge of poverty. This insurance and medications given by us really maintains lives of these families.

The same program was fulfilled for police and armed forces - 60 000 people.

The same was done for school and kindergarten teachers - more than 80 thousand people;

This is very important.

We have increased social expenses minimally increased pensions. Of course this is not enough.

We have brought the new insurance package in. This was made for those people who aren't below the edge of poverty (your majority belong to this category), but their income is hardly enough for them.

For example I met Miss Lali, mother of two children, who worked in Mioni. Mioni closed down in 1991 and it was completely sold out. Right now Miss Lali's income is 600 GEL per month. Her insurance package right now is about 20 GEL annually, so she is defended from some type of accident.

I am not talking about these programs with satisfaction. But these are the very first steps, to lighten people's living conditions and improve our economy.

My dear people, everything I am taking about is very tender and in most cases vulnerable. Economy is very sensitive and it is depending on political atmosphere a lot.

For example in Ukraine where the PM, Parliament, President and political parties permanently are fighting to each other - so economy is almost destroyed there.

This is why we have to understand that economy reacts not only on the disorder, but also on the attempts to create disorder.

Every morning I have to drive on Digomi road and I see that many interesting constructions are initiated there. It is interesting not because of its content, but from the architectural point of view - beautiful, esthetic, modern style. When I do not see workers constructing buildings is unlucky day for me. Then, when I see people working there again I get excited, because it means that this company got income for constructions. This means that people would be employed there, their families would be employed there. This day is a lucky day for me.

I have noticed that politicians in Georgia, unfortunately, have lots of money - it does not concern politicians from my Party and I am monitor this - but lots of money became available in the Georgian politics from some sources and not for good deeds and it needs to be tackled.

I want to tell every politician and those who have pretensions to be politicians and experts - lets think less about positions in the government and think more about the refrigerators of our people, about the stability of our country, about calmness and future!

When everything in the country is in disorder our aim is the to show Georgia as an attractive place for investments - with its stability, incorruption, with the main source of development. We will never be able to develop our economy without investor's money. Investors put their money where it is stability, calmness, normal and secure atmosphere.

Now, as never before we need to stand together, we need to hold each others hands, dialogue, exchanges of ideas and working for one big aim.

This factory somehow survived and it was not sold out. It was solved with the efforts of local management. You are patriots who saved this factory.

Three years ago when I first came here I promised you that all of us together would revitalize this factory. We drove in the carriages manufactured by you. I remember some people were saying that this was a PR action, but this plant is working since that day.

It is obvious that the most secured transportation mean is Metro, though Tbilisi metro was so miserable and damaged that if not our efforts we would be in very hopeless condition.

It is very funny, but I have heard that the reason of recent fire in subway was that we were preparing the subway for privatization. Private subway doesn't exist anywhere around the world! Sometimes you hear such nonsense that you get surprised. Don't we have many other problems?

No matter what people say but we were able to solve one hundred jobs in Georgia and those people who do not have cars will be able to use subway of European standards, like buses.

When I became a president there were no municipal transportation assets in Georgia practically.

It is true that they didn't like our buses from Netherlands (it is impossible to open windows there) but now our buses have air conditioning system.

We still have many problems - sometimes buses come late and people have to wait at the stations, but it is impossible to improve everything in one day.

My mission is not to stop construction, development and progress of Georgia. When this crisis is over and sky is clear, Georgia must be strong.

Of course everything is done for people, but we have heavy period ahead, this might last a year, but we have a plan that is impossible to fulfill without the involvement of Georgian society.

The PM is working very hard, the Parliament helps us, we are having dialogue with the opposition, which disagrees with us in many issues, but we have full agreement on the issue of stability.

It is very important to maintain such enterprises and develop new ones.

I travel a lot and see that many enterprises are sold out in Europe, because of the high level of corruption. Here in Georgia we do not have institutional corruption practically any more. Their taxes are high - ours not. We have a chance right now, despite the crises to bring many enterprises here in Georgia.

In this hard period of time, when investments are terminated everywhere around the world we have a chance, not to sink in this in the world storm.

We will achieve this together with you.

I was told in parliament during the debates recently that you cannot achieve anything if you are not close with the president. I said: everyone, who will create 100 jobs will become my friend, I can say the same about those who will create 20, 30, 50 jobs. I prefer to meet these people rather that the president of some countries, because this is our family, our 20 employees and this is our country.

Big politics must be submitted to small interests. Politics of small country - the biggest politic is the service of our own country and our own people. If we all fulfill this mission, we will better resolve the most crucial mission of Georgia.

Our pre-election slogan was - work instead of speaking. I have promised you that we will see the revival of this plant and we fulfilled this promise together with you.

Now it is time to stop speaking and continue to work.

I once again express my gratitude.

Thank you very for your work.

Press Office
of the President of Georgia