Why are the Abkhazian authorities lobbying for the apartment law? An economist's opinion
Law on apartments in Abkhazia
An active public campaign has unfolded in Abkhazia against the adoption of a law on apartments, which effectively abolishes the existing ban on the sale of housing to foreigners in the republic.
An Anti-Law Headquarters has been established to counter the adoption of this law. Its representatives have already met with members of parliament.
Agitation banners have appeared in various places, highlighting the detrimental consequences of the law’s adoption.
The authorities continue to insist that the law poses no threat and, on the contrary, will become a driving force for the Abkhazian economy.
According to the draft law, 30,000 apartments are planned to be built within a period of 10 years. It is likely that Russians will be the potential buyers of these apartments.
- The new “law on apartments” in Abkhazia
- Buildings empty, people in line – on the housing crisis in Abkhazia
A well-known Abkhazian economist, Ahra Aristava, discusses the economic aspect of the law:
It’s quite simple. A simple deal is being proposed: investing 150 billion rubles (approximately $1.66 billion) in housing construction in Abkhazia. The source of the funds would be Russian banks. Therefore, they are also proposing a law on mutual recognition of court decisions as a guarantee for the return of investments.
Naturally, in order to make a profit, these square meters of housing need to be sold for at least 300 billion rubles (approximately $3.321 billion).
The average income of Abkhazian citizens is 14,000 rubles per month (approximately $155), and the total annual income of all citizens is 15 billion rubles (approximately $166 million). Consequently, they do not have the money to purchase this housing. Abkhazian banks also do not have the funds to provide loans to the citizens of the republic for such a large amount.
Question: What do the authorities propose to complete this highly tempting deal?
Answer: They propose to replace the consumer and sell the housing to foreigners. After all, they are wealthy and have plenty of money.
And here come the lobbyists with the draft law on apartments. Supposedly, it’s for the sake of tourism.
In reality, it’s a bad deal. Instead of thinking about how to increase the income of Abkhazian citizens and improve their purchasing power, they simply suggest replacing poor citizens with wealthy foreigners. It’s an utterly simplistic proposal.
So, the impoverished population of Abkhazia becomes an obstacle for very influential individuals to make their significant deals.
Of course, how can such super important individuals be bothered by the presence of the poor population, raising some mythical concerns about demographics, the disappearance of the Abkhazian people, the Abkhazian language, or Abkhazian culture? How can such trivial matters interfere with these super-advanced investment projects?
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