Dimitri Khundadze at the Health Care and Social Issues Committee sitting responded to the COVID-19 situation and noted that Georgia demonstrates the exemplary readiness to address this challenge.

Fortunately, China has reduced the facts of infections and lethality within its borders but the situation is alarming beyond China, especially in Europe and in our neighborhood and the coordinated activities between the government and the citizens are of utmost importance: “We show a positively low index of the infected citizens but it does not allow us being relaxed, so, the Prime Minister often convenes the Coordination Council attended by the top management of all the instances. Deriving from the situation, we correct the regulations on a daily basis. The regulation adopted today may be further extended tomorrow. The Government does its best but we, unfortunately, witness irresponsibility of the citizens – there are facts of violation of self-isolation by the citizens, which increases the risk of infection. Thus, we all shall be aspired to prevent the grave consequences and address the complications”, - he noted.

The Committee resumed to the agenda and discussed with the I reading the bill on Accumulative Pension introduced by the First Deputy Economic Minister, Ekaterine Mikabadze.

The Pension Agency, since January 1, 2019, ensures accumulation of the sums that may be invested based on the investment policy document, which requires registration of the accumulated funds by means of the special depositary. Paragraph 1, Article 26 of the applicable law determines the obligation of the PA Investment Council to select the specialized depositary. At that, the law establishes certain restrictions regarding the depositary to prevent the conflict of interests. In some cases, the law establishes stricter restrictions to depositary than it is necessary to protect the legitimate interests of the participants of the accumulative pension scheme. It is to be provided that such strict restrictions fail to meet international best practices.

The bill annuls the record restricting investment of the pension assets to the securities issued by the specialized depositary and thus, increases the potential investment instrument area and facilitates the market liquidity. At that, the depositary shall be subject to the general frame regulating the conflict of interests to ensure the minimization of the conflicts.

The reporter also introduced with the I reading the bill on Investment Funds, aiming at formation of the legal framework and thus, regulating establishment of the investment funds and asset managing companies in Georgia.

The bill determines the conditions of equal treatment principles to regulate activities of foreign investment funds and asset companies in Georgia. The bill improves Georgian legislation governing the investment funds to ensure its approximation to the EU and IOSCO principles. The respective change is to be introduced to the Tax Code and establishes the best taxation regime annulling the double taxation.

The package was developed by the economic team of the Government in cooperation with the National Bank and the private sector.

The Committee approved the bills and discussed and approved the document for ratification on the Note Exchange Agreement on Dispatch of the Volunteers to Georgia within the Overseas Cooperation Voluntary Program between Georgia and Japan, introduced by the Deputy Foreign Minister, Khatuna Totladze.

The Deputy Regional Minister, Mzia Giorgobiani introduced with the I reading the draft organic law on Local Self-Government Code, aiming at contextual and terminological improvement of the Code.

The Committee approved the draft and discussed the bills by Zaza Gabunia, Merab Kvaraia, Goga Gulordava, Giorgi Kopadze, Koba Lursmanashvili, Gocha Enukide, Erekle Tripolski, Paata Mkheidze, and Archil Khabadze on: Rules of Procedure; Fees for the Use of the Natural Resources; Fees for Gambling Business; Fees for Postponement of the Mandatory Military Service; Donors of Blood and its Components.

According to M. Kvaraia, the package ensures harmonization of the Self-Government Code with the legislation by introducing the changes to 172 laws. The changes are of technical and terminological nature.

The Committee approved the bills and discussed with the I reading the draft organic law by Nato Chkheidze on Labor Code, and the bill on Code of Administrative Offenses. May 26, as the reporter noted, providing the historical recourse, integrity of the Head of the State and integrity of the country, and status of the national independence guarantee, can be related to the President Day. The bills entailed the dissent and the Committee rejected them.