Dialogue with ordinary people, the business community, foreign investors and the million-strong Georgian diaspora is the top priority, Lado Gurgenidze, the nominee for the position of Prime Minister and a career banker with ten years of investment banking experience, said on November 16.
President Saakashvili nominated 36-year-old Lado Gurgenidze, the chairman of the Supervisory Board of the Bank of Georgia (BOG), for the Prime Minister’s position on November 16. He is to replace Zurab Nogaideli.
“I believe that the people’s message has been accepted and understood,” Gurgenidze told reporters in what appeared to be a reference to recent anti-government demonstrations.
“This message involves making a bigger focus on social programs. And this, of course, should [be carried out] in parallel to reforms, which we will definitely implement if Parliament approves my nomination. The focus is also being made on employment, on creating new jobs.”
Gurgenidze was unwilling to reveal the composition of his new cabinet. “Consultations will take place this weekend… and I will be able to brief you more about it later,” he said.
President Saakashvili said he wanted the new cabinet to be formed “in the next few hours” and for Parliament to approve it “in the next few days.”
In accordance with the constitution, a prime ministerial nominee must select a new cabinet in agreement with the president. The latter has the right to nominate both the interior and defense ministers.
“The main task for me, if I am approved by Parliament, is to engage in communication and dialogue and if possible reach consensus with the people, especially with socially vulnerable people. And also with three important groups on which our economic strength and progress is based,” Gurgenidze said.
Those groups, he said, were the Georgian business community, foreign investors and the Georgian diaspora.
“The Georgian business community has stated clearly its desire to see the current economic course maintained, which it deems to be a precondition for further progress, further investments and further job creation,” Gurgenidze said. “Foreign investors, who are a major source of investment, constitute another group. I have experience of working with them and I hope to up the level of communication with them so as to ensure continued economic growth.”
“And of course, the third group is the Georgian diaspora, which is also a big source of investment. This group consists of about a million people, according to various estimates. They are increasingly interested in investing in our economy. They are an integral part of our economy, because they have families, relatives in Georgia. I have much in common with them, having lived abroad for 14 years. I studied and worked, mainly in the United States and England, and also spent some time in Russia, Poland, among other places.”
Gurgenidze, who holds dual British and Georgian citizenship, has been with the Bank of Georgia since 2004. The BOG has made a significant leap forward during his tenure, becoming one of the leading banks in Georgia with 34% market share (according to the BOG).
This year the bank expanded internationally, with the purchase of Universal Bank of Development & Partnership (UBDP) in Ukraine for USD 81.7 million. The BOG is 85% foreign owned. Gurgenidze reportedly personally owns slightly over 2% of bank shares.
Gurgenidze first came to public attention last year when he hosted a TV show, Kandidati (candidate) – a Georgian version of Donald Trump’s reality show, The Apprentice.
He has always been on good terms with the authorities and in particular with President Saakashvili. Last November, the Georgian president attended the Bank of Georgia’s initial public offering at the London Stock Exchange and less than a week ago he praised Gurgenidze at a meeting with leading businesspeople in Georgia.
On November 16 President Saakashvili hailed Gurgenidze as “the most successful and modern Georgian businessman”. He said Gurgenidze had managed “to revive Georgia’s dead banking sector.”
“In recent weeks Lado united the Georgian business community behind the Georgian state and I am grateful for this,” Saakashvili said. The president, in particular, praised Gurgenidze’s, as he put it, “responsible position.”
During the recent political turmoil, which culminated in riot police dispersing protesters on November 7, Gurgenidze rallied behind the government, with a notable appearance on a Rustavi 2 TV political talk show.
Despite Gurgenidze’s support for the government during the political stand-off, Davit Usupashvili, leader of the opposition Republican Party, was unwilling to criticise the prime minister in-waiting. Speaking on Rustavi 2 TV late on November 16, he took a noncommittal position, saying it was too early to make a judgement.
“It is difficult to talk about this reshuffle, because we still don’t know how the cabinet will be reconstituted,” he said. He did, however, say that he hoped Gurgenidze would “not be a prime minister of [the ruling] National Movement Party and he would [instead] be Prime Minister of Georgia.”