Caucasus Business Week #127 by Caucasian Business Week

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BUSINESS WEEK December 21, 2015 #127

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December 21, 2015, Issue 127

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SURROUNDED BY ONLINE LOANS The Market is out of Control and Harmful for Economy and Population

EUROPEAN COMMISSION BACKS VISA-FREE FOR Pg. 2 GEORGIA

AGL WILL COMPLETE CONSTRUCTION OF SHUAKHEVI HPP IN Pg. 6 A YEAR Pg. 7

SECURITIES MARKET AWAKENS IN GEORGIA

Pg. 4

Pg. 10

GEORGIA’S MAJOR PITCHER WINE COMPANY TO BUILD VINE AND VINEYARD MUSEUM IN KAKHETI

MAMUKA BAKHTADZE: “ARRIVAL OF CHINESE TRANSIT TRAIN IN GEORGIA IS A HISTORICAL EVENT”

Georgian companies have started issuing securities. The companies lobbied by Bank of Georgia are very active in this direction – M2 development company, Georgian Water and Power. Galt&Taggarts, a Bank of Georgia subsidiary, has placed bonds of the mentioned companies at the stock exchange. FINCA Bank has also issued bonds. The securities market development is of vital importance for drawing foreign investments, analysts assert. This process will steal another function from the National Bank of Georgia (NBG). Namely, securities regulatory functions will be handed over to an independent commission. The current issuance of the company bonds mainly constitutes 20-20 million GEL. GWP has confined with only 6 million GEL bonds. Nominal value of each bond is 1 000 GEL and the maturity period is 2 years. The amount of the coupon is determined by adding a 7.5% margin to the NBG refinancing rate. Consequently, efficient cost of the bond currently makes up annual 15%. Prior to issuing the bonds, GWP obtained BB- rating from Fitch rating company to be more creditworthy in the market. Pg. 7

GEORGIA’S PERSPECTIVES IN DUBAI MARKET

PENSARECASA YOUR THOUGHTS ABOUT HOME

Pg. 9

Pg. 12

2 MAIN EVENTS

Georgian PM responds to Putin’s words on possible visa free travel to Russia for Georgians

NEWSROOM

EUROPEAN COMMISSION BACKS VISA-FREE FOR GEORGIA

“We are aware of the statement issued today by the Russian Federation regarding the possible annulment of visa requirements for Georgian nationals. I believe it is a step in the right direction,” said Georgia’s Prime Minister Irakli Garibashvili. His comments were made shortly after Russia’s President Vladimir Putin made his annual news conference in Moscow. The Georgian PM also raised awareness that the Georgian Government annulled visas for Russian citizens as early as 2011. “This year, we extended their authorized period of stay, in the interest of attracting more Russian tourists and promoting people-to-people contacts,” stressed Garibashvili. Equally important are the interests of our many compatriots living in Russia - business people and other citizens – who have a stake in simpliﬁed visa procedures. For them it is important to see as many obstacles as possible removed regarding travel between the two countries,” said Garibashvili in a statement today.

Bollywood is coming to Georgia A new Bollywood movie is being filmed in Georgia in some of the country’s most scenic areas. In April 2016 a film crew from India will come to Georgia and film in the Kakheti, Adjara, Svaneti and Samtskhe-Javakheti regions. Today Georgia’s Minister of Finance Nodar Khaduri hosted Bollywood producer and director Abbas Mastan at his Tbilisi office. Khaduri promised the Indian filmmaker the Georgian Government would support his filming process in Georgia, and he expressed his desire that the Bollywood film would help raise Georgia’s profile as a premiere filming destination. Before now Bollywood film representatives have come to Georgia several times to carry out detailed research of Georgia’s filming potential and current industry. The guests said the support offered from the Government of Georgia was one of the deciding factors for choosing Georgia.

Refinancing rate jumps 8% in Georgia, raising loan costs for 8,564 people More than 8,000 people in Georgia will soon have to fork out more in debt repayments after an increase to the financing rate by 50 basis points, to eight percent. The 8,564 individuals are borrowers who have loans linked to the refinancing rate. Of this number 5,838 have mortgage loans and 2,726 have business loans. The National Bank of Georgia said its monetary policy decision to increase the refinancing rate was based on the macroeconomic forecast, where the Bank tightened the monetary policy in response to increased inflation expectations. Further changes to the monetary policy will depend on the inflation forecast, factors affecting inflation and the general state of the economy, said NBG. Unless other additional shocks take place, further monetary tightening in the coming periods is not to be expected. According to the current forecast, in the beginning of 2016 the inflation will remain above its target value, will start gradual decreasing afterwards and will return to its target value of 5 percent in the second half of 2016,” read NBG’s statement.

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he European Commission said Georgia has fulﬁlled all the benchmarks of its visa liberalisation action plan and it will propose in “early 2016” to the EU-member states to allow visa-free travel to the Schengen area for Georgian citizens. After the European Commission puts forth a legislative proposal on visa waiver, it should then be approved by the European Parliament and the EUmember states before it can go into force. Georgia hopes the process will be completed by mid-2016. “The Commission considers that Georgia meets all the benchmarks set in respect of the four blocks of the second phase of the VLAP,” reads the European Commission’s fourth and ﬁnal progress report on how Georgia has implemented its Visa Liberalisation Action Plan, released on December 18.

Visa Liberalisation Action Plan (VLAP), which was presented by the EU to Georgia in February 2013, is a set of detailed requirements that the country had to meet in order to become eligible for visafree regime with the Schengen area. After approval from the European Parliament and the EU-member states, Georgian citizens, holding biometric passports, will be able to enter the Schengen area without visa more than one time during 90 days in any 180-day period. According to the Justice Ministry’s Public Service Development Agency up to 776,000 Georgian citizens hold biometric passports as of December 18, 2015. “I am very pleased that Georgian citizens with a biometric passport will soon be able to travel to the Schengen area for short stays without a visa,”

EU Commissioner for Migration, Home Affairs and Citizenship, Dimitris Avramopoulos said on December 18. “The hard work of the Georgian authorities over the past three years towards achieving this important goal for the beneﬁt of Georgian citizens has given positive results. Now it is important to keep upholding all standards,” he added. The visa-free regime will apply to travels to all EU-member states, except for the United Kingdom and Ireland. The visa exemption will apply the following EU-members, which are part of the Schengen area: Portugal, Spain, France, Germany, Belgium, Luxembourg, Netherlands, Italy, Denmark, Sweden, Finland, Austria, Greece, Poland, Slovakia, Slovenia, Hungary, the Czech Republic, Latvia, Lithuania, Estonia and Malta. It will also apply to those EU-member states, which are not yet part of the Schengen zone: Cyprus, Croatia, Romania and Bulgaria, as well as to following non-EU member states: Iceland, Liechtenstein, Norway and Switzerland. The European Commission said that since its previous report on implementation of the VLAP in May 2015, Georgia has made the necessary progress and “the legislative and policy framework, the institutional and organisational principles, and the implementation of procedures throughout the four blocks comply with European and international standards.” Those four blocks in VLAP involved reform targets in areas ranging from document security, border and migration management to public order, external relations and fundamental rights. The European Commission also said that it will “continue actively to monitor Georgia’s continuous implementation of all benchmarks under the four blocks of the VLAP through the existing association structures and dialogues, and, if necessary, through ad hoc follow-up mechanisms.” Also on December 18, the European Commission released sixth report on Ukraine’s visa liberalisation, which, like in respect of Georgia, also says that it will present in early 2016 legislative proposal to grant visa-free regime to Ukraine; it will also require approval of the EU member states and the European Parliament.

GEORGIAN LEADERS WELCOME EUROPEAN COMMISSION REPORT ON VISA LIBERALISATION

eorgia’s President, Prime Minister, Parliament Speaker, as well as leaders of parliamentary opposition parties have welcomed European Commission’s report, which said that Georgia meets criteria for lifting visa requirements in the Schengen area. “I welcome the European Commission’s report on visa liberalisation action plan, which fully reﬂects the progress achieved by Georgia over the past three years,” President Giorgi Margvelashvili said in a written statement shortly after the report was released on December 18. “Huge efforts of the Georgian government and the authorities made it possible to meet within the shortest period of time all those requirements, which were envisaged by the action plan. This unity has brought the result to our country, which is an important step forward to ensure free movement of our citizens to the EU member states,” Margvelashvili said. “From now on a very responsible process lies ahead for us, which should be accomplished by adoption of a political decision by the European Union that will ofﬁcially open the EU borders for the Georgian citizens,” the President said. The European Commission said that it will present a legislative proposal in “early 2016” to the EUmember states to allow visa-free travel for Georgian citizens. After this formal proposal is presented, it should then be approved by the European Parliament and the EU-member states before visa-free rules can go into force. Georgia hopes the process will be completed by mid-2016.

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“Our task is to pass through this process with dignity and spare no effort to achieve the goal in the shortest possible time,” President Margvelashvili said. “I am sure that the Georgian government, Parliament, political forces and society will remain united to materialize our European choice.” “Our choice is European choice; Europe is our welfare and progress; more Europe in Georgia and more Georgia in Europe,” Margvelashvili said. “I, as the President of Georgia, will remain actively involved in all those processes, which are related to realization of this strategic goal.” In a televised address PM Irakli Garibashvili said that it’s “a historic day” for Georgia. “Georgia has made a step which will largely determine our future in the family of the European states,” Garibashvili said. The European Commission’s much-awaited report, the PM said, should now pave the way for visa-free travel to the Schengen area for the Georgian citizens in 2016. “Of course it does not mean that the Georgian citizens will be able to take tickets and go to Europe without visa from tomorrow,” he said. “Certain stages remain before the final decision, which, taking into view experience of other countries, may take several months.” In case of Moldova, interval between the European Commission’s positive final report and the time, when visa-free travel rule came into effect in late April 2014, was five months. The PM said that the European Commission’s positive report marked “the most important step in this process.”

“The European Union has actually acknowledged our unwavering commitments to the European values… and consistent efforts undertaken by our government for efficient and prompt implementation of reforms,” Garibashvili said. “Our country has confirmed once again that we are frontrunners among EU’s Eastern Partnership countries,” he said. “In response, the Europe tells us that it is open for the Georgian citizens,” the PM said. “We have fulfilled dream of present and many past generations. We have achieved the result with joint efforts of the people and the authorities despite of many external or internal obstacles,” PM Garibashvili said. “New stage for country’s development is starting with this historic decision,” he added. Visa-free travel rules will add “much deeper dimension” to Association Agreement and deep and comprehensive free trade treaty, which Georgia already has with the EU. “Europe is our historic home. Europe embodies everything which our nation aspires for – individual freedoms, rule of law, welfare, strong economy and equality, peace and bright future for our children, and most importantly it is a new space for realization for our self-identity and uniqueness,” “And this is path towards Georgia’s unity – we can make our country attractive for our Abkhaz and Ossetian brothers only through building modern, European state. I am confident that time will come when they fully make use of those benefits, which the European integration brings,” the Georgian PM said.

Editor: Nino Gojiashvili. Mobile phone: 595 050404 Reporters: Nutsa Galumashvili; Lazare Gvimradze; Shiva Parizad. Designer illustrator: Giorgi Magradze. Technical Assistant: Giorgi Kheladze

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge

December 21, 2015 #127

PUBLICITY caucasus business week

INTERVIEW 4 GEORGIA’S MAJOR PITCHER WINE COMPANY TO BUILD VINE AND VINEYARD MUSEUM IN KAKHETI caucasus business week

the many century history of making pitchers, its supervision methods in various regions of Georgia, as well as traditions and instructions for making pitcher wine of various grapes species. - What processes and difﬁculties are related to making pitcher wine and which methodology do you follow to make it? Gia Gamtkitsulashvili:

Pitcher wine does not imply to just press gpraes into a pitcher. This is a very tedious and long job.

Interview with Gia and Gela Gamtkitsulashvilis, founders of Twins Wine House company - When and how did you start the business and how would you appraise those years for your business? Gela Gamtkitsulashvili: We were born in the village of Napareuli, the Telavi District. Having graduated from a secondary school we continued our studies at Georgian Polytechnic University and graduated it in 2005 by a profession of an engineer-builder. We joined private business activities in 1990, not in winemaking business. Our family had always made the best pitcher wine. Therefore, in 2000 we started our own winemaking business. In 2002, we entered the winegrowing-winemaking institute. In 2005, we managed to make

pitcher Kakhetian wine of Rkatsiteli and Mtsvane grapes from our own vineyard (Napareuli Micro zone). We bottled the mentioned wine in 5000 glass bottles and distributed it in the domestic trade network. Our product became very popular in a short period. In the recent history of Georgia, we were the ﬁrst to bottle pitcher wine in bottles. Then we started purchasing pitchers in intense regime and expanding our cellar. At this stage, we own 127 pitchers of various sizes, including 90% are 3-4 ton pitchers made in the village of Vardisubani in 1979-1982. The total volume of these pitchers constitute 450-500 tons. Besides contemporary winemaking, in order to make high-quality pitcher wine, we explored

The process starts by a purchase of a valuable pitcher, its treatment (waxing, liming, washing by due pitcher and winemaking instruments and so on). Then grapes varieties should be selected (origins, species and so on), their analysis, pressure, valuable fermentation, sealing the pitcher and many other factors. We follow our own family tradition to make pitcher wines (both white and red wines), based on the recipe of our ancestors. This knowledge teaches special instructions on how to care for a pitcher (washing, keeping an empty pitcher and so on) and how to make wine (duration of fermentation in a pitcher, sealing a pitcher, duration of keeping husks of grapes for various wine varieties and so on). Our father has taught us: “To make a good pitcher wine, you should stay a long time in a pitcher from the very childhood and you have swallowed one pitcher washed water throughout the life”. We have built a pitcher and pitcher wine museum. In one of the halls three 500-liter pitchers are exposed. They are equally cut. We have been supervising and exploring the wine fermentation process in a pitcher. All our wines are for church, for divine liturgy, pure wine, because no additional substances are added and our wines pass only natural ﬁltration on husks of grapes. We supply our wines to the retail sector in this form. It should be noted the winemaking does not exist in abstract dimension. Winegrowing and winemaking are interconnected. Therefore,

The next year we will build vine and vineyard museum nearby the pitch and pitcher wine museum. We will expose Georgian grape varieties there, show how to select soil, vine roots, bud,

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inoculation, plant a grape, how to grow up it to full vintage and many other things. - Do you export wines to foreign markets or supply them to the domestic market too? Gela Gamtkitsulashvili: - We make wines for both exports and domestic markets. We grow exports volume every year, as well as the number of exports markets. Today, we exportwines to China, Japan, Russia, Britain, Germany, Lithuania, the USA. Last period our wine called as Pitcher Sun has become particularly popular and the most selling one. - What are your plans in 2016? Do you plan any innovations in the company and in general, what will you make focus on? Gela Gamtkitsulashvili:

In 2016, we will introduce new wine varieties to the market with new labels, namely Qisi, Khikhvi, Kakhuri Mtsvane, Cabernet, Alazani Valley White, Alazani Valley Red. We are conducting export negotiations with Poland, Ukraine, Kazakhstan, Estonia, Latvia. We also plan to increase the volume of supply of various wines to China and the USA. - Has the currency problems affected the winemaking in Georgia? Gela Gamtkitsulashvili: - The currency problems have not affected our company immediately. It should be noted last period the Authorities have provided much job (The Agriculture Ministry, National Wine Agency, the Wine Association) for popularizing the Georgian wines. In 2013, the UNESCO recognized technological process of making wines in a pitcher and added it to intangible cultural heritage list.

We believe the Georgian Authorities should further popularize pitcher wines. To this end, the quantity and volume of pitchers should be determined. Pitcher wines making methods should be strictly regulated, as well as its color, organoleptic characteristics and other parameters so as the pitcher wine occupy leading positions on the global winemaking map.

December 21, 2015 #127

PUBLICITY caucasus business week

AGL

caucasus business week

December 21, 2015 #127

The Shuakhevi HPP construction is currently in its main phase. The project will be complete in a year and Georgia will have a power station capable of generating 187 MW of clean power. Power produced by the plant will be supplied to the Georgian population during the winter months. During the summer when there is a surplus of power generation in Georgia, electricity will be exported to Turkey. Construction of the Shuakhevi HPP is managed by the project’s deputy director, Mr. JOSH GERARD.

AGL WILL COMPLETE CONSTRUCTION OF SHUAKHEVI HPP IN A YEAR 63% of the Construction Work is Already Complete SHUAKHEVI HPP: • INVESTMENT - 416 MILLION USD; • INSTALLED CAPACITY OF 187 MW; • POWER GENERATION STARTING DATE – 2017; • AVERAGE PRODUCTION - 450 GIGAWATT HOURS (GWH). - Mr. Gerard, what is the current state of the Shuakhevi HPP construction? - We have made a lot of progress in project construction. As you are aware, the Shuakhevi Hydropower Plant is one of the largest investments in Georgia’s infrastructure.

Construction of the Shuakhevi HPP is currently 63% complete in terms of civil work, 68% complete in terms of electrical/ mechanical work and 63% complete for the overall project. The estimated completion date for the Shuakhevi power house is the first quarter of 2017 inclusive of commissioning both units (turbines and generators). - The tunnels through which the Shuakhevi HPP cascades will be connected are, in total, 38 km long. What is the progress of tunnel construction? What difficulties do you face during the construction process? - Before we started the project, we conducted many surveys and studies. Based on these studies we were aware of all the potential difficulties we might face and were ready to deal with these challenges. The project is being constructed by the team of professionals, and there are no difficulties which they cannot solve. For the current phase, 72% of the work is complete. I think that our main challenge is safety. It is important that the project be carried out with maximum consideration for all safety concerns. There are very strict safety rules in place for each construction site, and these are strictly followed

by employees and visitors. I consider this to be our main challenge during the construction of not only tunnels, but also of dams and the power house. Safety is our main priority. - What beneﬁts will construction of the Shuakhevi HPP bring to Georgia? - First of all I would like to talk about the construction process.

650 Georgian citizens, most of whom live in the mountains of Adjara, are employed in both the project construction and in the many social projects which we are conducting. The project has created new jobs – and many people have gained valuable experience in the process. As a result, the Georgian labour market will have new professional staff after the project is complete. We are also implementing a number of social projects whose aim is to help the longterm development of mountainous Adjara. These include a number of infrastructure projects, such as road construction, school and kindergarten facilities and water system rehabilitation. In addition, were are conducting a variety of educational projects and are helping people who live in the area develop small businesses. We try to stand by and support every person living in the project area, and it is very important for us that all of them feel that their quality of life has improved. Also, after the Shuakhevi HPP starts producing electricity, Georgia will have a power station capable of producing more than 187 MW of clean power. Power produced by the plant will be supplied to the Georgian population during the

winter months and exported to Turkey during the summer months when there is a surplus of electricity in Georgia. At the same time it is important to mention that, since we are building property, we are paying property taxes which go towards local municipal budgets. We have already paid approximately 3 million Georgian lari in property taxes, and this amount will only increase after construction is complete. In doing so, we are helping to contribute to the ﬁnancial prosperity of the municipalities where our plants will be located. - This is the ﬁrst hydro project which you are implementing in Georgia. What is it like working with Georgian colleagues? - Working with Georgian colleagues has been very interesting, and it has been a pleasure both for myself and for the other foreign staff to work with them. I have worked in many countries, but never have I met such warm and hospitable people.

All of the Georgian colleagues that I work with on a daily basis are true professionals. Their contribution to the

successful completion of the Shuakhevi HPP project has been extremely important in terms of bringing the project to its current state of development. I would also like to mention that I actively follow developments in Georgian current events and often meet and talk with people from different generations. From this I can see that this country is clearly on a path to development. Georgia is developing fast and the younger generations expect a better future for their country. - 2016 is coming soon. This will be the most significant year yet for your project. What are your expectations? Do you expect any special difficulties during the final phase of the project construction? - Construction is progressing rapidly and soon the Shuakhevi HPP will be added to Georgia’s power generating resources. I think 2015 was a successful year and would like to thank each person for the huge contribution that they made towards the completion of the project.

ECONO-MIX

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SURROUNDED BY ONLINE LOANS

The Market is out of Control and Harmful for Economy and Population

conomic experts are giving the alarm as the quantity of organizations issuing online loans grows. They urge the Authorities to adopt the law on crediting business as soon as possible. Growth of similar organizations in quantity cannot develop the state economy, even more so, to assist the impoverished population. Online crediting organizations appeared in the Georgian market in 2014. They issue the ﬁrst loan without interest rates and these companies broadly advertize this factor, but they keep silence regarding interest rates of the second and third loans. Today, more than 10 companies issue online loans in Georgia. The loans amount ranges from 50 to 70 GEL on average. Credit organizations issue short-term small credits without any guarantee, on the ground of ID card submission. The loan is approved in 15-60 minutes. The online crediting companies only require that the borrowers must be 20-21 years old and above. The loan issuing conditions seem simple and attractive. The potential borrowers have to ﬁll out

an online application on the credit organization websites. They should insert a desirable amount on the calculator, as well as the desirable maturity period and click the button “Take a Loan”, fill out a registration field and pass identification. It is worth noting that only several online credit organizations offer the first loan without interest rates, while a majority part does not provide similar opportunity. Unprecedented high interest rates are set on online loans despite simplified terms. The borrowers have to pay monthly 30-32%, while the annual efficient interest rate is 392%. According to specialists, a major part of similar loans accounts for 500 to 1500 GEL. Despite high interest rates, online companies become more and more popular among consumers. The bank sector experts assert that a growth of online loan companies in quantity and unprecedented high interest rates will further impov-

erish the population. As a result, the economic growth will be ceased in the country. The quantity of online loan companies grow because the demand for quick money increases in the society. The bank sector expert Lia Eliava says the online crediting intensification may bring various threats to the population and the state economy, because online loans withdraw money from the real sector and direct it to the financial sector and the population has to take high costs to serve the loans. It is also interesting whether the Finance Ministry possesses information on online lenders, whether similar organizations are registered and pay taxes, whether their revenues are counted. According to my information, nothing similar happens and this is a huge problem, because the state budget loses certain revenues. In practice, this is a wild field that is not controlled by the Authorities”, Lia Eliava said.

It is very difficult to control online crediting sector worldwide, even more so the due legislation absents. Therefore, it would be simple for the Authorities to ban this business entirely, because it brings nothing good to the country. It would be better to ban commercial banks to issue similar loans. Online loan companies take finances mainly from commercial banks”, Eliava noted. The experts also talk about elaborating mechanisms for issuing loans and call on the Authorities to develop the due legislation as soon as possible. “The Authorities should introduce a law on crediting business with determined rights for issuing credits, as well as with specific procedures. And the existing unimportant norms in the civil code is not sufficient to ensure legal and legislative guarantees for crediting business. The Authorities have to perform a huge job, but no one is apparent who would take these steps”, Eliava noted.

SECURITIES MARKET AWAKENS IN GEORGIA

eorgian companies have started issuing securities. The companies lobbied by Bank of Georgia are very active in this direction – M2 development company, Georgian Water and Power. Galt&Taggarts, a Bank of Georgia subsidiary, has placed bonds of the mentioned companies at the stock exchange. FINCA Bank has also issued bonds. The securities market development is of vital importance for drawing foreign investments, analysts assert. This process will steal another function from the National Bank of Georgia (NBG). Namely, securities regulatory functions will be handed over to an independent commission. The current issuance of the company bonds mainly constitutes 20-20 million GEL. GWP has confined with only 6 million GEL bonds. Nominal value of each bond is 1 000 GEL and the maturity period is 2 years. The amount of the coupon is determined by adding a 7.5% margin to the NBG refinancing rate. Consequently, efficient cost of the bond currently makes up annual 15%. Prior to issuing the bonds, GWP obtained BB- rating from Fitch rating company to be more creditworthy in the market. It should be noted, in March 2015, Fitch representatives met with representatives of Georgia’s 15 major companies. Under the final report over these meetings, Fitch made attractive proposals to the companies regarding the price of services. Naturally, the system reliability grows after Fitch adds positive ratings to bonds. Hence, the securities market seems to be awakening, the growth paces, though, is low. “Companies are cautious in this respect because of high risks, as their bonds may lose liquidity and become useless. At the same time, everything depends on whether investors are confident to buy securities”, Mikheil Tokmazishvili, the former member of the NBG board, noted.

The successful placement has already proved the existing confidence in companies, Archil Gachechiladze, head of the Galt&Taggart supervisory board, noted. The securities market of Georgia is just taking the first steps and the year of 2016 will be more active in this respect, even more so the yield on foreign currency denominated deposits has declined and valuable and proper regulations will make the bonds more attractive, he said. The market will be developed at high paces and Georgian companies will be accustomed to drawing investments by this instrument without waiting finance resources from commercial banks, economic expert Emzar Jgerenaia said.

“The ﬁnance market was stagnant because this instrument was not applied. We plan to implement the pension system reformation. Where will we direct this money amid the stagnant market? That’s why certain activities are discerned last period. All big companies should draw investments through issuing securities, besides drawing ﬁnancial resources from commercial banks. Today the market is ready to buy bonds of any liquid company. At the same time, the T-bill purchase

level should be low and the financial liabilities regulatory functions should be deprived from the NBG. I hope this process will end in the near future”, Emzar Jgerenaia noted. The issue of separating the securities regulatory functions from the NBG is being discussed in active regime and the process is expected to end in 2016. The securities market regulatory body has been substituted several times for the last 15 years. Under the Securities Market Law that was first adopted in 1998, the securities national commission of Georgia was formed (NSCG). In July 2007, the NSCG functions were delegated to the NBG as part of the consolidation of financial system regulations. In March 2008, excluding the bank supervision function, all other functions were transmitted to the financial supervision agency. In October 2009, the financial supervision functions were returned to the NBG again. In 2015 the mentioned function were split from the NBG and the financial supervision agency was established. The United National Movement (UNM) has staged criticism on the decision. The Free Democrats also backed these protests. They appealed against the decision to the Constitutional Court and the latter suspended the operation of the recently established agency. Thus, the NBG still maintains financial supervision functions. At the same time, the NBG, the securities market regulator in Georgia, has not joined the International Organization of Securities Commissions (IOSCO). Moreover, Georgia has not joined the Multilateral Memorandum of Understanding for Consultations, Cooperation and Information

Exchange (MMOU). Both factors add negative affects to the capital market development in Georgia, analysts assure. Moreover, Georgia has to harmonize its legislation to the EU standards on securities and fulﬁll 22 instructions and regulations as part of the EU association agreement. Nor Georgia has adopted special law on securitization or mortgaged bonds. Specialists suggest the Authorities to ﬁll the legislative gaps in the near future. Many countries in the world draw capital through developing the securities market. Mikheil Tokmazishvili refers to the US sample.

“The US securities market is a well-developed segment that offers serious competition to commercial banks in terms of drawing investments. In Our country the 1990s showed certain signs of securities market development, but our society and companies turned out unready then”, Mikheil Tokmazishvili noted. Various ﬁnancial instruments are represented in the US market of securities that are issued by private sector, federal, state and local governments. The securities issued by the US federal Authorities dominate on the US market. Namely, in 2000-2012 treasury securities controlled more than 50% of total turnover in the US bonds market. The funds mobilized through treasury securities ﬁnance the US Federal Budget.

TECHNOLOGY

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PM UNVEILS DATACENTER WITH INNOVATIVE ENERGY-EFFICIENT COOLING SYSTEM “Today we see a cutting-edge 40 megawatt power datacenter. This is an innovative technology. I am very glad such a famous company has entered our country. This signiﬁes the investment environment has improved in our country”.

Our government has been encouraging foreign investments to our country, in general. We have taken serious steps in this direction. Moreover, in several days we will unveil the technology park to additionally stimulate foreign investors to put money in our country. In general, technological development will bring additional beneﬁt to the country”, Irakli Gharibashvili noted. The PM expressed his gratitude to all persons involved in the project, as well as the company founder. BitFury mega processing datacenter is equipped by the most advanced 28 and 16 nanometer chips. It should be also noted the company has installed an innovative cooling system, in the datacenter. The opening ceremony participants noted BitFury projects will considerably promote the development of information technologies in Georgia. The Gldani mega datacenter project has already created 20 permanent high intellectual job

places. Domestic Georgian employees jointly with foreign experts are establishing and introducing the most advanced information technologies in Georgia. It should be also noted Georgian IT specialists who are employed in the data center in Gldani, supervise the datacenters in Iceland from Georgia. BitFury company implemented the ﬁrst successful project in Gori and decided to expand business activities in Georgia and started implementing independent projects. Namely, the company is developing Tbilisi Free Zone on 18 hectare land plot in Gldani to draw successful IT companies to Georgia and attract foreign direct investments. BitFury mega datacenter will make much contribution to drawing other international companies. According to preliminary estimations, the Tbilisi Free Zone will attract more than 100 million USD FDI.

eorgian Prime Minister Irakli Gharibashvili has unveiled a datacenter with innovative energy-efﬁcient cooling system. The PM welcomed the fact the worldwide distinguished company of BitFury has made investments in Georgia. In cooperation with the Co-investment Fund, the company has already invested 30 million USD in Georgia, while the mentioned datacenter is the company’s second project in Georgia.

LIBERTY BANK CLIENTS TO TAKE QUEUE NUMBERS OUT OF BANK SERVICE CENTER

iberty Bank has introduced a new service – starting today, the bank clients are able to book their queue numbers without visiting service centers. The clients are also able to choose a desirable service center, date and time. The clients should dial a code in the queue terminal of a service center. Having made the booking, the clients will receive a SMS message at the cellular phones. Queue numbers may be also taken at Liberty Bank website https://libertybank.ge/booking and Liberty Banks’ ofﬁcial page in the Facebook.

“Liberty Bank provides tireless efforts to develop alternative bank channels. At this stage, we enable the clients to book their visits to the service

centers in advance and receive bank services in the shortest period”, David Ninidze, a head of the Liberty Bank department for alternative bank channels, noted. Liberty Bank serves over 1.5 million physical bodies through the largest network of service centers. At the same time, Liberty Bank has been developing alternative channels that enable clients to receive certain bank services without visiting service centers, including internet and cellular banking, quick payment terminals, ATMs, SmartPAY for cellular phones of any generation and EASYPAY terminals at shopping malls. Liberty Bank plans to offer many other interesting innovations to the clients in the near future.

December 21, 2015 #127

BUSINESS

caucasus business week

Georgia’s Perspectives in

DUBAI MARKET Natia Kereselidze, Evergreen Businessmen Services Representative in Georgia

he Dubai Market calls for Georgian small and medium business sector representatives! Evergreen Businessmen Services company has entered the Georgian market with this proposal. Naturally, the question arises about Georgia’s perspectives in a competitive market like Dubai. We will try to cast light on similar issues. We have talked about the Dubai tax-free market several times. This factor is very important for small and medium business sector representatives in Georgia to be exempted from income and other tax obligations. Similar environment, first, promotes the segment development and the integration in this big market with global scales. What are the perspectives of the Georgian small and medium business sector representatives to pave the way to such a competitive market as Dubai? I would genuinely agree on the opinion that the healthy competition fosters the business development. Moreover, the small and medium business sectors explore the target market thoroughly to determine how acceptable will be the environment and how their product will be sold on the market. Consequently, this sector is trying to be efficiently represented in the market. Similar companies are far flexible. Therefore, they have advantage to offer special products to the market, as well as special prices and services. Similar conditions ensure their leading positions in the markets. Amid the current economic situation in Georgia, this is a good opportunity for both small and medium business sectors to make their business more successful, start businesses in Dubai, set up companies, join this global market that is visited by millions of tourists every year. Similar environment is attractive for Georgia and is ideal for expansion of business activities. Georgia is rich of the resources the exports of which ensure much competition in the market among valuable and successful companies. The export is one of the important factors that unconditionally ensures and fosters the business sector development. I believe Georgia’s small and medium business sector should employ this opportunity, launch exports to Dubai and introduce Georgian

special products that will offer valuable competition to other advanced companies in the Dubai market. More than 20 000 business activities operate in Dubai. The segment is not expired, any sector is open to new businesses. The Dubai economic report has showed the following directions are the most requested and successful business sectors: • WHOLESALE-RETAIL TRADE 25.2% • TRANSPORT 13.9% • REAL ESTATE 12.9% • MANUFACTURING – 12.5% • FINANCIAL SERVICE – 11.6% • CONSTRUCTION SECTOR – 7.7%. Population growth, along with a dynamic real estate market, soaring tourists’ arrivals and healthy trade activity have been the main pillars of the Dubai economy. In this case, I will overview the business activities that would be more acceptable and suitable for Georgia’s small and medium business sectors.

The Dubai Market Opportunities for Georgia’s Small and Medium Business Sectors

HR Companies are very successful in the Dubai market and there is ideal environment for Georgian HR companies. It is famous the Dubai government publishes over 312 000 vacant positions and therefore, the segment of employers cannot be expired. The number of announced vacancies considerably exceeds the Georgian statistics. The foundation of a HR service agency in Dubai will be very proﬁtable and successful business, taking into account the existing statistical data.

Shipping Companies

Fujairah Sea Port is the major seaport in the world after Singapore that daily handles at least 100 ships and provides all valuable services, including :

• C CONTAINER HANDLING, • GENERAL CARGO • BULK CARGO • MARINE SERVICE, • BUNKERING, • M MARINE SUPPLY, • LIVESTOCK Our company Evergreen Businessmen Service will assist any transportation company in starting business in the world’s largest seaport.

Real Estate Agencies

Let’s imagine how proﬁtable the real estate sales in UAE will be compared to the Georgian market. This is additional advantage to draw clients to Georgia for investments. Everybody knows Arabs are interested in Georgia very much. Today a number of projects, many important construction projects are being carried out in Georgia under their management. Heating, conditioning, refrigerator inventory

are also very requested in Dubai and Georgian companies operating in these segments would make serious success in Dubai.

Mineral Water

Mineral water would be the best export item from Georgia to Dubai. This is the minimum list of 20 000 business ﬁelds that are published by the Dubai Economic Development Service every year. Georgia has huge perspective to become a plenipotentiary member of such trade market as Dubai. Therefore, Evergreen Businessmen Services provides all necessary services for business inauguration, including obtaining licenses, local sponsorships, bank services, ofﬁce rental, HR service, permanent residential visas and so on. Detailed information may be received at the address. Giorgi Saakadze Descent 11, Panorama Business Center. Email: Tbilisi@setup-biz.com Web: setup-biz.com Tel : 577433366

BUSINESS 10 MAMUKA BAKHTADZE: “ARRIVAL OF CHINESE TRANSIT TRAIN IN GEORGIA IS A HISTORICAL EVENT” caucasus business week

“Our route’s efficiency strengthens four times compared to the traditional seaborne route and it ensures considerable insurance of the cargo owners”, the Railway director general noted. As reported, the first transit train (with 21 containers) was off from Chinese seaport of Lianyungang terminal on November 29 and it arrived in Georgia on December 13, while the train will reach the final destination in three days. The cargo transportation was carried out as part of the NOMAD Express project. The train has crossed China, Kazakhstan, Azerbaijan, Georgia and will arrive in Turkey. This is the first transit cargo train and a really implemented the Silk Road project. In the future, the transit train will connect Asia with Europe in the shortest period. The cargo from the

eorgian Railway director general Mamuka Bakhtadze has appraised the arrival of the Chinese transit train to Georgia as a historical fact. “This is an important and historical event. We have worked on the project implementation for two years along with completion of many technological and logistics projects. We have successfully ﬁnished all these projects. We have transported the cargo through the

Silk Road corridor for the ﬁrs time. The starting point is in South Korea. The corridor crosses China, Kazakhstan, Caspian Sea, Azerbaijan and Georgia and ends in Istanbul, Turkey”, Mamuka Bakhtadze noted. DHL and Vestel companies are among the clients of the transit train from China. This fact signiﬁes the world’s major companies are interested in our corridor”, Mamuka Bakhtadze noted.

December 21, 2015 #127

Chinas’ far eastern point of Lianyungang seaport will reach Istanbul in 14-15 days, while seaborne transport used to take 40-45 days. In 2013 by the initiative of Georgia, Azerbaijan and Kazakhstan railway companies a tariff committee was established with the aim to enhance the TransCaspian corridor’s competitive capacity. Later Aktau, Baku and Batumi seaports joined the new logistics project – TransCaspian International Transport Route on basis of the committee. Transparent tariffs were set on various consignments as part of this union and this has considerably decreased and simpliﬁed the transportation in our corridor. In 2015 the participant countries established the consortium that united Mishgeng Logistics transportation company (China), КТЖ экспресс (Kazakhstan), Caspar Caspian Sea Maritime Company and Karavan Logistics (Azerbaijan), TransCaucasus Terminal (Georgia). Turkey has joined the consortium as an associated member. It is worth noting at the end of 2015 another transit train will arrive in Georgia, while several thousand of containers will be transported as part of the project starting 2016. Georgia’s transit potential will double. In the future no average two block trains will arrive in the country.

December 21, 2015 #127

HEALTHCARE caucasus business week

WORLD’S ONE OF THE INFLUENTIAL POLITICIAN SHARES HIS HEALTHCARE EXPERIENCE, VISITING GEORGIA FOR THE SECOND TIME THIS YEAR

ormer Foreign Minister of France Bernard Kouchner visits Georgia for the second time this year to assist and support the country to reform its healthcare system. Kouchner, who is the board chairperson of the Global Alliance health organisation and cofounder of the union Doctors without Borders, arrived to Georgia on Thursday after being invited by the country’s Health Minister Davit Sergeenko. Mr.Kouchner held his meetings with civil society and non-governmental organizations in the ﬁeld of healthcare. On the meetings at National Center for disease control and public health, challenges of Georgia’s healthcare and current reforms were discussed. Bernard Kouchner outlined primary health system as one of the important elements of overall health system he noted that every citizen needs to have access to primary health. Implementation of reform is very hard and is full of obstacles, so Global Alliance will support Georgian government to ﬁnd solutions and solve issues. The Ministry of health is on the way to increase the quality and access to healthcare. “I am here to support the reforms and the Ministry. Primary care reform will take months

and months, to cover the whole Georgia, but things are going fast in here much more than in other countries. Georgian government wants to provide their people with the same access, diagnosis and same treatments despite of ﬁnancial conditions” Kouchner said. However, B. Kouchner also commented on the project for the reconstruction of 3 hospitals in Tbilisi Georgia, which will be implemented in the framework of public private partnership. “In Europe, health care is one of three leaders of the sectoral priorities for cooperation of government and business in the framework of PPP. I am a supporter of such a form of cooperation for one simple reason: it allows to achieve the implementation of national level projects in the health sector at lower ﬁnancial costs from the state. And all this within a reasonable timeframe, which is also important. Georgia is planning a reconstruction of 3 national hospitals in Tbilisi. And in this situation, PPP guarantees high quality standards of reconstruction, installation of modern diagnostic equipment, staff training, creation of new modern laboratories etc…,” Kouchner noted. Bernard Koucher ended his visit on Friday and he will actively take part in the implementation of upcoming and current reforms in Georgian healthcare.

BUSINESS

PENSARECASA caucasus business week

December 21, 2015 #127

YOUR THOUGHTS ABOUT HOME

ensarecasa.it – mono-brand retail shops with the idea of “furniture suitable for all” - are the part of IMAB Group family, which was found in 1968. Over the passing years a unique corporate mission has been developed and consolidated: creating a style of furniture that contributes to the welfare of people thanks to combination of research, technology, Italian design and craft-knowledge. Company is based in Fermignano, owns 12 factories in Italy and 14 shops in various countries and is specialized in interior. The secret of the success is the experience, gained during last half of the century. Italian designers work on brand concept, follow modern tendencies, research sale systems and create collections based on all of these elements. You can find these collections in Tbilisi, Georgia at Pensarecasa.it furniture Store. The Store is operating since May, 2015 and already acquired many faithful and thankful customer. Pensarecasa.it Tbilisi Store is an official representation of Pensarecasa brand, which guarantees the Italian quality. Store offers its customers all products of Pensarecasa brand, furniture, accessories, floor finishing materials, wallpapers and all the details, which are designed for your perfect interior, as well as unique pre and post-sale services. Professional designers will help you to design optimal plan of living spaces and interior and to proper layout of furniture and accessories. Brand name – Pensarecasa in Italian means “Your Thoughts About Home” and derives from the main goal of the company – to turn into reality any desire of the customer, related to the interior. This main goal, together with unique service and price combination is the guarantee of brand success. Pensarecasa.it offers its client’s wide choice of Kitchen, Bedroom, Wardrobe, Kid Room, Living Room and accessories. Even if you like our furniture, but it does not feet in your home design, our consultants will help you to modify the size, color and material and to make an order, which typically needs from 2 weeks to 2 month to arrive from Italy and to be installed in your house. Customers are receiving post-sale services after delivery and installation of the products.

Customer can contact store personal in case of questions or any problematic issues and will receive full support for any issue raised. Besides of wide range of products and pre and post-sale services, Pensarecasa.it offers its customers convenient system of payment - Installment, with the chance to pay for the products in several installments. Pensarecasa.it successfully cooperates with corporate clients. The kitchens in the apartments in “M2” living spaces are equipped with Pensarecasa. it Kitchen models. Flat owners of “M2” also are entitled to 8% discount on all products in the Store. Pensarecasa.it Tbilisi Store also cooperates with Metra

Development, Archi Group, Lisi Development, Salvus Development, Azimut Development and offers discount systems for their ﬂat owners, too. Currently, Pensarecasa Tbilisi store offers various discounts to its customers. Store offers exclusive discount on several products in the store. - 50% discount on 11 models of Kitchen represented in the Store Show Room; - 30% discount on 19 products (chair, sofa, table) represented in the Store Show Room; Starting from December 12th the New Year’s decreasing discount on full collection in the store has been launched from -20%. Each day the discount will be decreased by 1% and on Decem-

ber 31st, when discount will equal to 1%, big surprise will await for the customers. Customers will receive updates on the details of decreasing discount on Store Facebook Page https://www. facebook.com/pensarecasaTbilisi/ Enjoy your New Year’s discounts and turn your thoughts about home into reality – buy furniture from Pensarecasa. Customers will enjoy new collection of furniture and accessories from new 2016 year. Pensarecasa.it Tbilisi Store wishes you a Merry Christmas and a Happy New Year! Please visit our store at 12th km, D. Agmashenebeli Alley, near the driveways of Didi Digomi.

WORLD NEWS

December 21, 2015 #127

caucasus business week

il futures reclaimed the $35-a-barrel level on Friday, rebounding after a two-session decline, but prices were still set to mark a loss for the week on the back of a growing glut of U.S. supplies and worries over weaker energy demand in the face of a warmer winter. January West Texas Intermediate crude CLF6, -0.20% tacked on 32 cents, or 0.9%, to $35.27 a barrel on the New York Mercantile Exchange. Based on the contract’s settlement of $35.62 last Friday, prices were down roughly 0.7% for the week. The contract expires on Monday. February Brent crude LCOG6, -0.32% on London’s ICE Futures exchange added 32 cents, or 0.9%, to $37.38 a barrel. Prices are set to lose 1.4% on the week, from the January Brent frontmonth contract close of $37.93 last Friday. The February contract was down about 1.9% for the week. “The petroleum markets have turned higher on what looks like some end-of-the-week proﬁttaking off the recent decline, with a modestly weaker U.S. dollar lifting some of the downward pressure off valuations,” said Tim Evans, energy futures specialist at Citi Futures. WTI prices had earlier dipped to as low as $34.39. On Thursday, prices slid as supply-glut concerns intensiﬁed. Data provider Genscape Inc. said stockpiles at Cushing, Okla., the delivery point for the benchmark U.S. futures contract, rose by nearly 1.4 million barrels in the week that ended Tuesday. Nearly all of that came in the last half of the week, according a person who had reviewed the report. The Genscape report came one day after the U.S. Energy Department reported an unexpected 4.8 million-barrel increase in U.S. crude stockpiles in the week that ended Dec 11.

OIL BOUNCES BACK ABOVE $35, BUT READIES FOR A WEEKLY LOSS

Azerbaijan to Ban Alcohol Sale for Cash From 2016

German ﬁrms expect deeper slump in Russia business

Moody’s: Fed hike Armenia approves will hit EMs most, $300mn Eurasian including Turkey loan for state urkey is among the large emerging budget needs economies that will likely be affected

anctions against Russia will lead to a further decline in German trade with the country, a German foreign trade lobby group has said, expecting a turnaround in bilateral business to happen not before 2017. he Association of German Chambers of Industry and Commerce (DIHK) said Friday it expected exports to Russia to shrink to “less than 22 billion euros” ($23.8 billion) this year, down from 39 billion euros in 2013 - the year before the EU imposed sanctions against Russia over the Ukraine conflict. For 2016, the trade lobby group forecast another slump in exports by 5 percent, before expecting an “improvement” in 2017. According to DIHK data, the export decline means Russia has slipped down a list of Germany’s most important trade partners to 15th place in the first 10 months of this year, compared with 13th place in 2014. The DIHK said there was growing concern among companies with business ties to Russia, pointing to a survey in which two thirds of firms said their operations had been affected by the sanctions, compared with just over a third in August.

most by an interest rate hike by the US Federal Reserve (Fed), credit rating agency Moody’s said in a statement hours before the long expected Fed meeting. Such emerging markets (EMs) include Brazil, Russia, Turkey and to some extent South Africa, where severe domestic challenges have contributed to exchange rate and ﬁnancial market instability, the statement read. “These sovereigns have little policy room to protect growth and buffer themselves from external shocks,” the agency further underscored. A prolonged row between Turkey’s central bank and President Recep Tayyip Erdoğan over the former’s monetary policies sent the lira to a series of record lows over the past year. With the Justice and Development Party (AK Party), of which Erdoğan is the founder, having strengthened its grip on power on the Nov. 1 election, the central bank is expected to bow down to political authority in policymaking. While a Fed rate hike would remove an element of uncertainty for emerging market sovereigns, some will remain at risk to adverse capital ﬂows and investor sentiment, the Moody’s also said. Starting the day at 2.986, the lira pared its losses, easing to 2.956, against the greenback at around 5 p.m. The stock exchange, Borsa İstanbul (BİST), also gained 4.1 percent on Tuesday to reach 72,147 points.

zerbaijani President Ilham Aliyev signed a decree on applying amendments to the Criminal Code and the Code of Administrative Offences, which stipulate a ban on the sale for cash of alcoholic drinks, as well as the wholesale of tobacco products. Under the amendments, the sale of excise goods for cash (except for retail sale of tobacco products) in small quantities (up to 50 manats), and the purchase of such goods in small quantities with an aim to subsequently sell them will be ﬁned for 100 manats. In cases when the purchase price ranges from 50 manats up to 1,000 manats, a ﬁne at an amount from 1,000 manats to 2,000 manats, or a punishment in the form of correctional labor for up to one year, or imprisonment for one year will be applied. In cases when the sum exceeds 1,000 manats a punishment in the form of correctional labor up to two years, or imprisonment for up to two years will be applied. At the same time, the amendments allow the retail sale of cigarettes for cash in small quantities, that is, for personal use only. If cigarettes are purchased for their subsequent sale, their cost should be paid only through bank or through payment cards. Otherwise, a penalty in the amount of 100 manats will be applied. The changes will come into effect on January 1, 2016.

he National Assembly (NA) of Armenia on Friday ratiﬁed the $300-million loan, which the Eurasian Fund for Stabilization and Development will provide for the objective of covering the country’s budget deﬁcit. The Parliament approved this loan by a vote of 60 for, 19 against, and 2 abstentions, informed the NA reporter of Armenian News-NEWS.am. The majority of the NA opposition had not approved of the respective draft law arguing that the debt burden of Armenia should not be increased. The loan will be provided from 2015 to 2017 in three $100-million tranches, with an annual interest rate of 2.1 percent for twenty years, and a ten-year year grace period.

PUBLICITY caucasus business week

December 21, 2015 #127

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Ave., Tbilisi Tel: 225-20-72/73/74/76 embassy.tbilisi@mfa.gov.tr Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 consulate.batumi@mfa.gov.tr Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00; Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16 Kingdom of Spain Embassy Rustaveli Ave. 24, I ﬂoor, Tbilisi Tel: 230-54-64 E-mail: emb.tiﬂis@maec.esRomania Embassy

TBILISI GUIDE

caucasus business week

7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:tbilisi.amb.sekretariat@msz.gov.pl Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: iraqiageoemb@yahoo.com Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: iranemb@geo.net.ge United Nations Ofﬁce Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: registry.geo@undp.org Web-site: www.undp.org International Monetary Fund Ofﬁce Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: kdanelia@imf.org Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail: adbgrm@adb.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia ; Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail: emb.tbilisi@mzv.sk

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: info@hi-tbilisi.com Website: http://www.hi-tbilisi.com BETSY’S HOTEL With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: info@betsyshotel.com Website: http://www.betsyshotel.com

Restaurants CORNER HOUSE Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: contact@cornerhouse.ge RESTAURANT BARAKONI Restaurant with healthy food. Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 www.barakoni.com CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi; Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,

SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50

Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89

Real Estate International Real Estate Company (IREC) Tbilisi. 9 P. Aslanidi St. Tel: +995 32 238 058 Mob: 599 95 76 71 Email: Info@irec.ge www.irec.ge

GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental ﬂeet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition. Contact information: Email: info@gsservices.ge. Address: Shalva Dadiani 10

Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432

Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73

THE BEST GEORGIAN HONEY OF CHESTNUTS,ACACIA AND LIME FLOWERS FROM THE VERY HART OF ADJARA MATCHAKHELA GORGE IN THE NETWORK OF GOODWILL, NIKORA AND SMART

PUBLICITY caucasus business week

December 21, 2015 #127