Caucasus Business Week #132 by Caucasian Business Week

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BUSINESS WEEK February 8, 2016 #132

February 8, 2016, Issue 132

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ONLINE GAMBLING GAMES MAY BE SUBDUED TO STRICT REGULATIONS The Association of Young Financiers and Businessmen (AYFB) has reacted to the recent initiative proposed by Georgian Prime Minister Giorgi Kvirikashvili on expected introduction of gambling game regulations. Gambling games remain problematic in terms of not only social or emotional aspects, but also economic aspects, AYFB analyst Zura Kukuladze noted. Strict regulations should be set on the online games, ﬁrst of all. Along with internet access expansion, online games gain more and more popularity, the AYFB says. Ofﬁcial reports on increased turnover in the gambling business prove the mentioned assertion: 366 million GEL in 2011, 996 million GEL in 2012, 1.213 billion GEL in 2013, 2.032 billion GEL in 2014 and 1.353 billion GEL in the January to September period of 2015. According to the AYFB reports, more than 400 000 citizens of Georgia are involved in only online games every day. Pg. 6

Temur Basilia: Bank Sector is Main Source of GEL Depreciation Pg. 4

Anzor Kokoladze: Currency Exchange Booth was My First Business Undertaking

Pg. 8

WHILE GEORGIAN BIG PHARMA IS IN CRISIS New Player Enters The Market The pharmaceutical market is passing the crisis period, pharmaceutical companies assert. The GEL exchange rate depreciation has increased prices on medications and this process has brought problems to pharmaceutical companies too, they assure. Pg. 11

GEORGIA’S CUSTOM SERVICE SIMPLIFIES WITHIN THE SUPPORT OF GEORGIAN RAILWAYS Pg. 7

ECONOMIC DIGEST MONTH OF HISTORIC PLUNGE IN GEL RATE AND OIL PRICES Pg. 14

REAL ESTATE MARKET TO SEE THE HEAVIEST PERIOD IN 2016 Unfavorable perspectives are forecast for the real estate market in 2016. If the GEL exchange rate is afﬁxed to the 2.5 point, the demand for apartments will decline and the housing sector will have to further lower apartment prices. The current developments in the Georgian economy have badly affected the real estate market. The currency crisis has brought stagnation into the development sector, development companies assert. Pg. 7

TSIKOLIA Georgian Designer who Manufactures Brand Watches in Switzerland Pg. 9

TBC BANK BECOMES GENERAL SPONSOR OF GEORGIAN RUGBY UNION Ruby is Our Game – TBC Bank has become a title sponsor of the Georgian Rugby Union and the National Team. The decision was unveiled at the joint news conference that was held today with the participation of the TBC Bank managers, the Rugby Union representatives, rugby players and reporters. Under the bilateral agreement, TBC Bank has become a general sponsor of the Georgian Rugby Union, the national rugby team, Georgian rugby teams of all age categories. Pg. 12

The new Prime Minister has put forward 4 new initiatives. At the meeting with businessmen, Giorgi Kvirikashvili outlined the following directions: taxation system reformation; reformation of engagement and transparency; development of regions and fundamental education reforms; The taxation system reformation has raised the special interest. The Georgian government plans to introduce the Estonian model of taxation system to Georgia and abolish profits tax on reinvested funds. Giorgi Kvirikashvili was appointed a Georgian Prime Minister only a month ago, but he has already obtained positive attitude from the Georgian business circle, especially after the recent initiatives. It would be expedient to say that Giorgi Kvirikashvili is a favorite Prime Minister of businessmen. Following the resignation of Irakli Gharibashvili, the private sector representatives named him as the best candidate, even more so the business sector had already established closed relations with the then Economy Minister. According to GeoStat, the national statistics service of Georgia, in January 2016 the inflation rate marked 5.6% compared to January 2015 and 0.9% compared to December 2015. It should be noted the National Bank of Georgia (NBG) has determined the target inflation rate at 5%. However, for the past months the NBG fails to maintain the inflation within the predetermined frames. The annual inflation rate exceeds the target rate since August 2015. The rate decreased to 4.9% only in December, while in January the indicator exceeded the target rate again. Pg. 5

NEWSROOM

February 8, 2016 #132

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MAIN EVENTS SWEDEN ALLOCATES €35,000 FOR GEORGIA’S RADIOACTIVE WASTE MANAGEMENT

he Swedish government will support Georgia to safely and effectively implement a radioactive waste management plan. Today the Ministry of Environment Protection of Georgia signed a cooperation agreement with the Swedish Radiation Regulatory body, which will allocate €35,000 (97,000 GEL) to Georgia to adopt a 15-year Strategy and Action Plan regarding radioactive waste management. The Strategy will be drafted jointly by Georgian and Swedish specialists in line with high European standards.

NORWEGIAN GROUP SETS UP SALMON FARMING IN GEORGIA’S ADJARA REGION

Norwegian consortium is investing in Georgia’s Adjara region to start farming Norwegian salmon in Kobuleti. Today Georgia’s Ministry of Agriculture and Green Sea Food signed a Memorandum of Cooperation outlining the deal. The deal stated Green Sea Food should bring latest technologies in salmon farming to Georgia, establish a farm and produce biologically clean ﬁsh. Georgia’s geographical location and preferential investment environment encouraged the Norwegian group to bring the business to Georgia.

NATIONWIDE PROJECT: GIVING AN ADDRESS TO ALL HOMES IN GEORGIA

GEORGIAN PM PRAISES MILLENNIUM CHALLENGE CORPORATION’S EDUCATIONAL SUPPORT

eorgia’s Prime Minister Giorgi Kvirikashvili is praising the United States’ (US) contribution to improving Georgia’s education system. Kvirikashvili positively assessed the US foreign aid agency Millennium Challenge Corporation’s (MCC) $140 million (about 335 million GEL) second compact for Georgia. Georgian top ofﬁcial met the MCC’s deputy vice president Fatema Sumar in Tbilisi. He said the MCC funds were a “direct investment in Georgia’s future” and he positively assessed the way the program was being implemented in Georgia.

Kvirikashvili said the educational reform was one of the priorities of the Government of Georgia and the MCC’s grant was “the most important program” of US assistance. Similarly, Sumar said it was “very important” for the MCC to help Georgian students to get a “quality” education in science, technologies and mathematics. An agreement between Georgia and US on providing ﬁnancial support to better manage Georgia’s educational sector was signed in 2014. The MCC contract was worth $140 million USD. Meanwhile, yesterday the Millennium Chal-

lenge Account – Georgia announced the US government will invest $14 million USD (about 35 million GEL) to train and support professional development of public school teachers across Georgia. The professional training initiative will involve all public school principals and 20 000 science, math, informational technologies and English teachers of Grades 7-12. Additionally, 2,000 facilitators will be prepared to offer their assistance to other teachers in each public school across the country. The project was launched in January 2016 and will last until the summer of 2019.

ach person, building and area in Georgia will soon have a legal address, even if homes and businesses are without an obvious street name or number. Georgia’s National Agency of Public Registry collaborated with the Public Service Development Agency to identify all unnamed areas in the country and make each location easier to find. The Agencies have already finished formally identifying 20 cities across the country. All streets were precisely described, homes on those streets were given numbers and owners of each building were identified.

ESTONIAN EXPERTS HELP GEORGIA IMPLEMENT INCOME TAX REFORM

stonian experts are giving a helping hand to Georgian authorities to implement the Estonian Taxation Model in Georgia. Georgia’s Prime Minister Giorgi Kvirikashvili hosted Estonian Ambassador to Georgia Priit Turk. Kvirikashvili thanked Turk for the Estonian experts’ efforts to help Georgia implement its income tax reform, based on the Estonian model. Under the Estonian Taxation Model all businesses, except proﬁt-sharing businesses, should be exempted from income tax.

US HELPS GEORGIA BETTER PROTECT ITS STATE BORDERS

he United States’ Defence Threat Reduction Agency (DTRA) is providing $10 million USD to modernise the way Georgia protects its state borders. The DTRA and Georgia’s Border Policy of the Ministry of Internal Affairs signed a cooperation agreement. Within the agreement, border sections at Kasumlo and Kedi villages will be constructed and managed under Georgia’s Border Policy. Meanwhile, the state border between Georgia and Armenia will be better equipped with special equipment necessary for observing, watching and monitoring the area. The section will be fully ﬁtted out by March 2017.

NEW TIFLIS PROJECT: GOVERNMENT TAKES GIANT STEPS TO DEVELOP GEORGIA’S CAPITAL

eorgia’s capital Tbilisi is undergoing rapid and major transformation to renovate the old, historic city, add new tourist routes and create more recreation zones for locals to enjoy. Government of Georgia presented the New Tiﬂis project that aimed to boost the economy, develop tourism and contribute to the well-being of Tbilisi’s residents. The project was due to be completed by the end of 2016.

I am glad that we are starting a new project that enables us to take care of Tbilisi, restore its old districts and give it new glory. Tbilisi is a special city and it is our duty to keep

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the land near Wine Slope and Gudiashvili Square. A very important thing is that after the renovations are completed all the areas will be adapted for people with disabilities,” he said.

and develop a legacy for our ancestors,” said Georgia’s Prime Minister Giorgi Kvirikashvili while presenting the New Tiﬂis project today. More than 200 professionals including architects, historians, urbanists, art critics and others were working with the Government to develop an urban environment plan for Tbilisi so its 1.5 million residents and visitors can enjoy the cultural and diverse landscape. The city’s Mayor David Narmania said work started today to renovate 45 addresses on Aghmashenebeli Avenue in Marjanishvili area.

Also we have already started renovating

Dry Bridge and its nearby area will also be renovated within the New Tiﬂis project. We are renovating not only the facades of the buildings but we will enter into yards and renovate all structural and communication infrastructure. This will signiﬁcantly lift the prices of real estate in Tbilisi,” said PM Kvirikashvili. About 800 people are employed in the renovation project.

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

February 8, 2016 #132

PUBLICITY caucasus business week

INTERVIEW caucasus business week

February 8, 2016 #132

TEMUR BASILIA: BANK SECTOR IS MAIN SOURCE OF GEL DEPRECIATION Interview with Economic Expert Temur Basilia

-This year commercial banks’ net proﬁts exceeded 0.5 billion GEL, while representatives of many business sectors complain about diminished revenues, difﬁculties in payment of bank credits and reduced consumer demand. What are reasons for this situation? - Commercial banks obtained privileged conditions under the ruling of Mikheil Saakashvili. We remember that

After the August 2008 war international organizations allocated about 4 billion USD to Georgia, of which one billion USD were directed to assisting commercial banks, under the Government decision. In that period, many commercial banks were in the heaviest conditions and the government introduced a number of preferences for them. This was quite serious financial injection in the bank sector. Moreover, commercial banks became authorized to perform other activities too. Previously, commercial banks were entitled to carry out only banking activities, i.e. they could receive deposits from citizens and issue loans. Commercial banks were not entitled to make other business activities and this is a normal practice is all other developed countries, including in the USA, where commercial banks follow strict regulations and are not entitled to carry out other extra activities, except only financial operations. The bank sector supervisory office has set strict supervision over this norm. In Georgia commercial banks were enabled to do all sort of businesses and this decision has artificially bubbled the bank sector.

This decision has led to replacing owners of commercial banks. If we examine very well, we will see that there is no genuine Georgian commercial bank in Georgia, except Cartu Bank, and they are owned by foreign citizens or international organizations or companies registered abroad. -How hazardous is this situation for the country? -There are no direct political threats, but when we talk about foreign owners, they possess stronger lobby positions. Major ﬁnancial institutions that have founded these commercial banks are able to conduct direct negotiations with the Government, including on their own commercial interests and the government has to and must take into account their interest, i.e. maintain their monopolistic conditions on the market that were granted to these commercial banks several years ago. - Do you mean the previous Authorities have created monopolistic conditions to commercial banks for political porpoises? - Naturally, this decision was driven by politi-

cal interests, because large masses of citizens could be controlled through commercial banks in terns of finances, as well as other business sectors. - What are mechanisms for recovering this system? - First of all, commercial banks should return to their basic role and main function - reception of deposits and issuing loans. They should be deprived of all other noncore activities. - Commercial banks were banned to keep noncore assets, but a major part of experts and developers assert that commercial banks have not conceded their noncore assets in reality. Do you agree with this consideration? -This problem cannot be resolved through only instruction or decision by the National Bank of Georgia (NBG). Legislative amendments should be adopted. I do not know why the Authorities are not taking due steps in this direction. The fact is this issue was raised several times, but in vain. If the ruling Authorities do not takes respective decisions today, the developments will go complicated in the finance sector. These decisions should be taken immediately. Legislative amendments should be prepared and this is not a difficult process. -Besides noncore activities, managers of commercial banks are said to be founding microfinance organizations too and commercial banks easily issue credits to these microfinance organizations that re-issue the borrowed loans with far higher interest rates. Do you think this is a real problem?

Owners of these microfinance organizations are managers of these commercial banks. This signifies commercial banks issue safe loans and at the next stage financial institutions re-credit these loans with higher interest rates. This signifies our citizens have to pay doubled interest rates for credits – one to commercial banks and another to microfinance organizations. This issue is not regulated in Georgia at all. And this direction should be controlled definitely. If the microfinance organizations act as small commercial banks, then the bank sector supervision service should set control over them. Regretfully, today this direction is uncontrolled. - Amid the GEL exchange rate depreciation, Georgian commercial banks have announced restructuring programs. Do you think these programs have really alleviated the situation of USD loan borrowers? - Commercial banks have announced a restructuring of the loans, while the interest rates remain the same. In reality, borrowers have to pay higher interest rates than they were to pay before. In reality, commercial banks have offered no real preferences to their clients. - What additional steps could be taken by

credit organizations for sake of clients and what practice is applied in other countries? - Commercial banks could lower interest rates and even remove them in certain cases, but commercial banks have organized such a system that enables them to collect interest returns in the first year and they receive surplus profits in the next years. The same practice is applied in the USA. It would be a correct approach if commercial banks had lowered profits or completely zeroed profits in the second and third years. - Would not be this decision a hazardous precedent for commercial banks? - This would be a reasonable precedent, because commercial banks need solvent clients, not bankrupt ones. Do commercial banks need clients? If commercial banks lose consumers, in the long-term perspective they will lose revenues. - Our interview started with business problems that worsened after the GEL exchange rate deprecation. What changes are reported in the bank sector after the national currency devaluation? - In 2015 commercial banks issued short-term credits of about 1 billion USD. This amount was 1.7 billion GEL under the then exchange rate. The GEL depreciation transformed this amount into 2.4 billion GEL. This signifies the borrowers have to pay 700 million more to serve the loans. This volume of the national currency is withdrawn from the turnover and this process damages the business sector development. - But this is not the “merit” of commercial banks. Even more so lower solvency of borrowers damages commercial banks too. - This situation is the outcome of the erroneous money credit policy carried out by the National Bank of Georgia (NBG), the result of the government policy that escapes interference in the developments and the result of the general situation in the bank sector. The very bank sector is the main reason for the GEL exchange rate depreciation. - What do you mean? - The IMF report of January 2015 directly says that the volume of USD denominated loans issued by commercial banks represent one of the major risk factors, because borrowers would face difficulties with returning these loans after the GEL exchange rate depreciation. The IMF was giving due recommendations to the NBG and the Georgian government in this direction. Regretfully, nothing has changed. The liquidity risk is another major problem. In this situation the bank sector lacks for money resources to cover the liabilities, including before the depositors. Therefore, commercial banks stay at the verge of bankruptcy (somebody may perceive this statement surprising, but this is reality). The NBG has started issuing loans to them – the socalled refinancing loans. The National Bank has already issued more than one billion USD refinancing loans and this factor as one of the main reasons for the GEL exchange rate depreciation. Because of inappropriate management of the commercial banks, the National Bank had to issue more than 1 billion USD loans to them and this is “the role” of commercial banks in the GEL devaluation. The bank sector regulations are weak in Georgia and this is the main problem. It should be also noted in the past years the Georgian bank sector drew foreign currency resources in the form of loans totaling 2.7 billion USD and the sector has to return 4.4 billion USD in the next 3 years. On the one hand, these two indicators cannot be compared to each other, because the service costs exceed 50% and I am sure there are corruption signs. On the other hand, the serious problem is that this factor ejects the GEL volume from the turnover: when they drew this 2.7 billion USD, the GEL exchange rate was 1.7 against USD. This signifies commercial banks attracted 4.6 billion GEL, under the then exchange rate, and now they have to pay 4.4 billion USD, i.e. commercial banks will withdraw 11 billion GEL from the country. These are official indicators of the national bank. In 2016 commercial banks have to pay 2 billion USD. This is an answer to the question how the bank sector “promotes” the business. This is an evident sample what is a negative impact on the whole business sector from similar invaluable management.

- Both experts and ministers stress real problems derive from the high dollarization coefﬁcient. Amid the economic difﬁculties, what leverages may be applied by the Authorities or the NBG to foster reduction of this indicator?

The dollaraization coefficient reduction is one of the main recommendations of the IMF. I do not like staging criticism on the previous Authorities, but the fact is that commercial banks were granted exclusive privileges under the ruling of Mikheil Saakashvili and they were authorized to carry out operations in foreign currencies. Before, Georgia based commercial banks were to carry out transactions in the national currency. If borrowers wanted to take USD, they could take loans in GEL and then exchange into USD. -I s this approach and mechanism democratic? - This is genuinely democratic and this practice is applied in the USA and the EU. This practice was applied in Georgia too, but the previous system was changed. The previous system would strengthen the GEL creditworthiness. - You assert the Authorities take no steps for the bank sector recovery and do not follow due requirements and recommendations. What would you say about abolition of forcible expulsion of bad-payers from their homes? - This is one of the correct and advanced steps. Even the USA knows no similar practice of forcible expulsion of bad-payers from their houses. If a borrower fails to timely cover the liabilities, he/she receives a notification from the commercial bank. If the borrower fails to cover the liabilities again, the commercial bank applies to the court and the issue is resolved by the court. - However, the US court system is more efficient compared to the Georgian system and the existing gaps in the Georgian court system caused objections against this law …. - The system is normal when human rights are protected. If we want to construct a normal and civilized state, this form should be established. The mentioned decision is a step forward. - The Authorities have taken this decision. Why does not the government take other steps? Maybe it is afraid of financial shocks.

Tightening of the regulations will not cause financial shocks. On the contrary, the situation will be stabilized, but seemingly, the Authorities face difficulties with taking due decisions. - in not only economic and financial fields, but in general. I would remember the pre-election promises on revision of political cases from the period of Saakashvili’s government. The Authorities would not have to spend huge financial resources. It would be better to hold consultations with many professionals and the government should take the due decisions. Another and the main factor is to show a political will. - Don’t you expect the government to take more active steps after the New Prime Minister was appointed? - I have known Giorgi for many years. He was the head of one of the offices of the President’s administration, when I was an assistant to the President. I can characterize him only positively from both professional and personal points of view. Last period I met him several times in the USA, where he was paying a visit as the Georgian Foreign Minister. We discussed various issues. I believe he is a good candidate, but the question is whether he will manage to overcome the existing challenges and defeat the existing lobby groups. He will have to show strong political will.

ECONOMIC DIGEST

February 8, 2016 #132

caucasus business week

MONTH OF HISTORIC PLUNGE IN GEL RATE AND OIL PRICES MERAB JANIASHVILI Economic Analyst

Kvirikashvili’s Initiatives

he new Prime Minister has put forward 4 new initiatives. At the meeting with businessmen, Giorgi Kvirikashvili outlined the following directions: taxation system reformation; reformation of engagement and transparency; development of regions and fundamental education reforms; The taxation system reformation has raised the special interest. The Georgian government plans to introduce the Estonian model of taxation system to Georgia and abolish proﬁts tax on reinvested funds. Giorgi Kvirikashvili was appointed a Georgian Prime Minister only a month ago, but he has already obtained positive attitude from the Georgian business circle, especially after the recent initiatives. It would be expedient to say that Giorgi Kvirikashvili is a favorite Prime Minister of businessmen. Following the resignation of Irakli Gharibashvili, the private sector representatives named him as the best candidate, even more so the business sector had already established closed relations with the then Economy Minister.

Inﬂation Still Exceeds Target Indicator

ccording to GeoStat, the national statistics service of Georgia, in January 2016 the inflation rate marked 5.6% compared to January 2015 and 0.9% compared to December 2015. It should be noted the National Bank of Georgia (NBG) has determined the target inflation rate at 5%. However, for the past months the NBG fails to maintain the inflation within the predetermined frames. The annual inflation rate exceeds the target rate since August 2015. The rate decreased to 4.9% only in December, while in January the indicator exceeded the target rate again. Despite the January annual inflation rate exceeded the target indicator, the NBG has not raised the monetary policy rate. The NBG has maintained the refinancing loan rate at 8%. As reported, the monetary policy rate increased from 4% to 8% in several stages throughout 2015. The annual inflation rate is expected to slightly exceed the 5% rate at the beginning of 2016, but later the rate will drop below the 5% indicator. Anyway, the rate will be around the target indicator, the NBG forecasts assure. The monetary policy tightening in 2015 has already brought negative impact onto the economic growth. Interest rates increased on GEL denominated loans and the credit portfolios growth rates decreased. These tendencies will diminish the joint demand. It should be also noted the NBG named the GEL exchange rate depreciation as one of the main reasons for higher inflation indicator.

LARI Sees Historical Bottom

n January the GEL exchange rate against USD declined again and saw its historical bottom of 2.49 point. In early January the

The month of January saw extraordinary economic developments, including the collapse of global oil prices to $27 and the GEL exchange rate historical depreciation are the most important facts. The new initiative by Georgia’s new Prime Minister Giorgi Kvirikashvili should be also stressed, as both the ruling party and opposition forces openly backed these initiatives. GEL was fixed at the 2.39 point. The GEL exchange rate depreciation provoked panics in the currency market. These tendencies deepened after, at the end of the month, the GEL depreciated by 0.03 GEL on the same day. Currency auctions are not held at the weekends and negative moods strengthen in the population in this period. Actually, the NBG President Giorgi Kadagidze has delayed to make reaction to the GEL exchange rate correction again. Namely, the GEL rate plunged on January 23, while the NBG President appeared before the society on January 26. However, the NBG President devoted a major part of the news conference to the discussion of the 2014 report at the Parliament, and did not make focus on the plunged GEL exchange rate. The national currency depreciation is largely driven by the negative expectations that arose among the market players around the current developments in the country. “At the rate of 2.4 GEL against USD, the imports decreased in such a volume and quantity that foreign currency inflows and outflows have been balanced. Money mass is the second factor. We have maximally limited the money mass and the money mass growth indicator has nearly zeroed. Consequently, the monetary aggregate cannot affect the GEL exchange rate either”, Kadagidze noted. The NBG President has expressed his position, but the reality is different. According to the NBG statistics, in December 2015 the NBG injected 100 million GEL in the turnover that supposedly has mixed into the currency market in January and largely conditioned the GEL exchange rate depreciation.

New GEL Banknotes

he GEL theme may be continued by one pleasant event. On February 1, 2016 renovated GEL banknotes appeared in the turnover. Initially, 20 and 50 GEL banknotes were renovated. As to the 100 GEL banknote, they will appear later in the turnover and the NBG will notify society about this in advance. The renovated banknotes are protected by easily perceptible and modern and high-technology protection signs that also include the nominal identiﬁcation signs for the blind. The used materials and protection mechanisms grow resistance to pollution and natural wear. 5 and 10 GEL banknotes will be renovated later. The previous issuance banknotes will remain in the turnover along with the new ones. We hope the GEL will regain the lost creditworthiness through the renovated banknotes and the Georgian national currency will maintain stability.

Economy Dollarization Grows

he dollarization coefficient grows in the bank sector. According to the last reports (January to November 2015), the sector’s dollarization coefficient has marked 69%. This signifies nearly ¾ of bank deposits are denominated in foreign currency. It should be noted, the

current officials of the NBG named the bank sector Larization a priority direction in spring 2010, but six years have passed, when the NBG President announced the commencement of the Larization strategy and nothing has changed, as the Georgian bank sector’s dollarization coefficient is 68-69%. It should be noted the dollarization coefficient increased from 60% to 70% for the past year as a result of the GEL exchange rate depreciation.

Commercial Banks See Historical Proﬁts

long with increased dollarization coefficient, commercial banks have seen historical profits that exceeded 0.5 billion GEL. In 2015 net profits of Georgia based commercial banks made up 537 million GEL, up 63 million GEL compared to 2014 (475 million GEL). Namely, in December 2015 commercial banks increased their profits by 84.5 million GEL compared to November 2015. Total assets of commercial banks have also increased. In December 2015 total assets of commercial banks rose by 0.5 billion GEL and marked 25.2 billion GEL.

2700 New Entries in Debtor Registry

he bank sector’s proﬁts grow year by year, but bank clients are often included in the so-called Black List and this list continues growing. According to the February 1 information of the National Enforcement Bureau (NBE), the Debtor Registry records 146 185 entries, up 2 700 ones compared to the previous month. It should be noted the Debtor Registry recorded 143 517 bodies at the end of 2015, up from 133 583 entries as of December 31, 2014.

Georgia Loses One Position in Economic Freedom Index

eorgia has lost one position in the 2016 Economic Freedom Index published by the Heritage Foundation jointly with the Wall Street Journal. Georgia ranks 32nd with 72.6 points among 178 countries. Georgia ranks 12th Europe in the 2016 index, which has named the country among free countries in terms of economic freedom. “Georgia has made considerable achievement in terms of management of government expenditures, efﬁciency of open markets and regulations, but the rule of law remains the biggest challenge”, the report reads. According to the document, foreign and domestic investors enjoy the same rights under the law, the bank sector is growing and this provides access to ﬁnancial resources, but the stock exchange still remains weak and less-developed. Moreover, minimum capital and only two

procedures sufﬁce to launch business in Georgia. Hong Kong, Singapore and New Zealand are among three top countries in the Index, while Venezuela, Cuba and North Korea occupy the last positions. As to our neighboring countries, Russia ranks 153rd, Ukraine is 162nd, Azerbaijan is 91st and Armenia is 54th.

Privatization in 2015

he privatization process is one of the sources for drawing foreign currency to Georgia and to provide the national currency stability. In 2015 the state budget’s privatization plan called for mobilizing 280 million GEL and budget payments marked 285 311 504 GEL. The information was spread by the Ministry of Economy and Sustainable Development.

Oil Prices See Record Plunge

he global oil prices fell to $27 per barrel in mid January 2016. For the ﬁrst time since 2007 the price of barrel of oil dropped below $28 after the US abolished sanctions against Iran and Iranian oil returned to the global oil market. Tehran plans to put out about 500 000 barrels a day and this volume is expected to create surplus supply to the global oil market. It is worth noting in late January in international markets the oil prices slightly increased and marked 30-31 USD per barrel.

The World Bank: Georgia’s Economic Growth will Reach 5% in 2018

ccording to the new report of the World Bank (WB) (Global Economic Perspectives), Georgia will record slight economic growth in 2016, while the economic growth indicator is forecast to hit 5% in several years. The global economic growth pace may rise to 2.9% in 2016, up from 2.4% of 2015. According to the new reports of the World Bank, in 2016 Georgia’s economic growth will be 3%, in 2017 – 4.5% and 5% in 2018. To put simply, if Georgia’s economic growth pace is ﬁxed at 3%, the country will need 50-70 years to reach the living conditions of Estonia. This signiﬁes Georgia needs high paces of GDP growth to faster come up the developed countries. AS to the WB report on our neighboring countries, by 2018, Azerbaijan’s economic growth is forecast at 2.7%, while Armenia is expected to record 3% upturn. The Russian economy is also expected to recover to 1.3% growth in 2017 and 1.5% upturn in 2018, while this indicator makes up -3.8% in 2015 and -0.7% in 2016.

GAMBLING GAMES

caucasus business week

February 8, 2016 #132

HEADLINES ANNUAL INFLATION 5.6% IN JANUARY

eorgia’s annual inflation accelerated to 5.6% in January from 4.9% previous month, according to the state statistics office Geostat. On monthly basis there was 0.9% inflation in January. Food prices were up 5.1% year-on-year in January and prices in the group of alcoholic beverages and cigarettes rose by 7.3% y/y. Annual inflation in the healthcare group stood at 11% in January, driven by 22.6% y/y price hike for medical products, appliances and equipment and 11.2% y/y increase of prices for outpatient services. Prices in the group of household maintenance and equipment rose 10.4% y/y and inflation in the group of housing, water, electricity and gas was up 8.4% y/y in January. Prices for hotels and restaurants services increased 6.5% y/y in January.

EBRD ALLOCATES €100 FOR THE DEVELOPMENT OF GREEN CITIES

he EBRD is considering engagement in the development of “Green Cities” in Georgia. The proposed Framework consists of a facility of up to EUR 100 million to support municipal investments related to “Green Cities The total project cost is estimated at up to EUR 130 million including co-ﬁnancing provided by an international donor(s). Strategic planning – to priorities investments in pursuit of the green agenda. The cost is estimated to be EUR 150,000 per participating city.

GEORGIA WELCOMES MORE THAN 300 000 VISITOR IN JANUARY 2016

eorgia’s name as a desirable holiday destination is growing, and the latest ﬁgures prove it. More people are visiting Georgian during their holiday breaks. The Ministry of Internal Affairs released data that showed 323,159 visitors came to Georgia in January 2016. This was 4.4 percent more compared to the same month of 2015.

CHINESE INVESTORS TO BUILD FERROALLOYS PLANT IN KUTAISI

ferroalloys plant will be constructed in Kutaisi’s Free Industrial Zone (FIZ), the Kutaisi FIZ executive director Soso Nibladzae told Commersant news agency. Currently, negotiations are underway with the Chinese company and the Chinese party is expected to invest 1.5 million USD investments in the project implementation.

GEORGIA LOOKS TO STRENGTHEN TIES WITH TURKEY

eorgia-Turkey relations were high on the agenda today during the meeting between Georgia’s Foreign Minister Mikheil Janelidze and Turkish Ambassador to Georgia Zeki Levent Gümrükçü. The two ofﬁcials met in Tbilisi and spoke about enhancing the strategic partnership between the two nations and cooperating more effectively across a range of sectors including political, trade and economic, and transport and energy. Special focus was also made on the importance of carrying out high-level bilateral visits of regional country leaders.

FIVE FRENCH CITIES ENJOY GEORGIAN WINE TASTING

ine lovers in France, one of the world’s most renowned wine countries, got a taste of Georgian wine at several exhibitions this week. Five French cities – Paris, Orleans, Blois, Angers and Saumur – sampled wine from Georgian wine companies Iago’s Wine, Pheasant’s Tears, Ramaz Nikoladze Cellar, Golden Wine, Winery Niki Antadze, Natenadze Wine Cellar and Mariam Iosebidze Wine. The Georgian National Wine Agency said Georgian wine was presented at the natural wine exhibition La Dive Boutteille in Saumur, while the Les Penitentes exhibition was held in Angers. The other three cities enjoyed smaller tasting events.

ambling games remain problematic in terms of not only social or emotional aspects, but also economic aspects, AYFB analyst Zura Kukuladze noted. Strict regulations should be set on the online games, first of all. Along with internet access expansion, online games gain more and more popularity, the AYFB says. Official reports on increased turnover in the gambling business prove the mentioned assertion: 366 million GEL in 2011, 996 million GEL in 2012, 1.213 billion GEL in 2013, 2.032 billion GEL in 2014 and 1.353 billion GEL in the January to September period of 2015. According to the AYFB reports, more than 400 000 citizens of Georgia are involved in only online games every day. “In general, gambling games are part of the entertainment and service field. Maximum promotion and expanded access to online games generates incorrect and distorted perception of gambling games. The economic segment, where there is no real economic demand, uses this product. This signifies our society perceives this product as an instrument of making money and a source of revenues, not as a mechanism of entertainment, in which citizens usually pay money. This signifies the service that is not in demand, is promoted. Similar approaches and perception generate both economic and social problems.

The fundamental problem consists in the fact that gamers are not thoroughly and valuably identiﬁed. Incomes of the gamers are not analyzed, the turnover of the gambling business is not valuably analyzed. There are no perfect mechanisms for calculating the turnovers. Economic expediency and substantiation is not carried out for the ﬁeld development. Social

sharpness of the problem is not essentially considered”, Zurab Kukuladze said. The AYFB has introduced its visions about what are the fiscal and economic effects from promotion of this business in the economy. The effect is zero, the AYFB analyst noted. “Special taxation regime runs for the gambling business. This signifies this business pays only duties to the state budget (every 5 years), while no additional taxes are charged on organizing online gambling games. This signifies online games add no fiscal effect to the state economy and the state budget receives no penny from this business. Since gambling games were maximally adapted into the online space, its accessibility has also grown. This signifies this sector attracts such financial resources that in ordinary cases would go to other sectors of the business. In its essence, gambling games belong to the entertainment business. Promotion and expansion of its attainability attracts the money that would never go to the entertainment business in terms of economic logic. Consequently, the economic circuit model is violated, because the money that was to go to the ordinary consumer market, is ejected from the economy and is deposited on accounts of business bodies of unclear origins”, the AYFB statement reads. The AYFB statement also notes that the issue comprises social aspects too. “Since young people, who are adapted to the internet space, are widely engaged in online games and this category spends a major time on online games, I believe that these people lose the interest in education, in improving skills and development, in general. Consequently, these people are ejected from the economic development cycle. They lose chances for development and growth and a social group oriented on unreal future is being shaped. The big scales of this problem, existence of similar multiple groups in the economy and in the country, in general, aggravates the heavy social situation in the country. -It is widely recognized fact that gambling games are widespread in low social strata. This signifies this category considers gambling games as an instrument for making money, not for entertainment. Therefore, offering losing games to this category of people aggravates their condition and worsens the existing heavy social background. -The special nature of online games shows that the underage category is widely involved in the gambling games. First of all, the special regard should be paid to the Advertising Legislation that does not ban free demonstration of promo video clips and other commercials to the underage cat-

egory, especially in the online space. Moreover, simplest registration conditions are applied in online games and underage gamers are not prevented from playing online gambling games”.

Online games comprise other additional risks, the AYFB analyst Zura Kukuladze said. I mean money laundering and criminal use of the existing accounts in the online casinos. It should be noted this gap has been multiply highlighted by several influential international organizations. Recommendations by FATF (the Financial Action Task Force on Money Laundering) and MONEYVAL (the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism also prove this consideration. These recommendations call for improving personal registration procedures in the online games space. “Today personal registration in online casinos is available without any exploration of personal information. This practice enables to register false data or information of other persons. FATF and MONEYVAL recommendations serve the eradication of this problem, because similar practice comprises risks of money laundering, financial support of terrorism and other illegal activities. Today, online casino accounts represent channels for illegal money turnover, in practice”, Kukuladze noted. The AYFB is developing a gambling games regulatory concept and specific proposals will be introduced to the society in about 20 days. The full concept will be definitely transformed into a legislative initiative and bill. “At this stage, our main principles refer to strict identification of gamers, limitation of money losses, creating a transparent system of a joint database of gamers and money turnover in the system”, Kukuladze noted.

February 8, 2016 #132

ECONO-MIX

REAL ESTATE MARKET TO SEE THE HEAVIEST PERIOD IN 2016

nfavorable perspectives are forecast for the real estate market in 2016. If the GEL exchange rate is afﬁxed to the 2.5 point, the demand for apartments will decline and the housing sector will have to further lower apartment prices. The current developments in the Georgian economy have badly affected the real estate market. The currency crisis has brought stagnation into the development sector, development companies assert. If the process goes on, apartment prices will decline again, Zviad Darakhvelidze, the founder of Monolith Group, noted.

„If the USD exchange rate against GEL is afﬁxed to the 2.5 point, the price contraction process will continue. If we want to sell our products, prices should be lowered, there is no other solution. For the past months the real estate prices have manifestly declined and these prices are expected to decline in the future too. If the USD exchange rate maintains the existing positions or strengthens further, the stagnation will increase in the economy. Even more so, 75-80% of the population buys apartments thanks to mortgage loans. The GEL exchange rate depreciation has increased expenditures of developers. Only 10% of the customers can buy apartments by direct purchase. The remaining part depends on commercial banks. If the USD remains at the 2.5 point, the housing sector will have to lower apartment prices further”, Darakhvelidze said. The Orbi Group’s PR ofﬁce says that the USD strengthening has not affected their apartment prices yet. Apartment prices have not declined, but the quantity of sold apartments has diminished compared to previous years. Part of the real estate agencies declare that

caucasus business week

in 2015 the sales plunged because of increased supply and lower demand. Moreover, the global crisis has also undermined the sales volume.

“The demand has declined. There are so many construction projects. The quantity of apartments exceeds the quantity of clients. Consequently, the sales volume has decreased. The number of clients is less compared to the number of apartments under construction. The GEL depreciation has nothing common with the sales contraction. Crisis is everywhere. Financial resources were retransferred from abroad too, plus bank loans. Credits are difﬁcult to take because of LARI or because of salary amount. This is other side”, Irina Chekavina, a representative of the real estate agency of Galaga, noted. Free money was mainly coming from abroad. Part of the consumers used to buy apartments through bank loans, she noted. “There is a global crisis and the problem derives from not only Georgia. Many people used to come to us from Europe, the USA, and Russia. Even now Russians have come. In 2016 the sales volume will decrease. The apartment prices will also diminish, because the demand contraction results in the price slowdown. I think the earlier

prices were even exaggerated”, Chekavina noted. IGA Group ﬁnancial manager Shota Gujabidze also points to stagnation signs in the development sector. “Stagnation is evident and the GEL exchange rate depreciation has largely driven this process. In general, stability to similar shocks is characteristic to the development market. For example: In 2014 the GEL exchange rate collapsed from about 1.72 point to 1.86 point, but in this period the real estate market growth lasted anyway. In 2015 the GEL exchange rate depreciated from 1.88 point to 2.45. The market could not withstand such press and the USD rate strengthening resulted in downturn in prices.

At this stage, prices have collapsed and we do not expect the situation may change in the near future. Even more so, this year parliamentary elections will be held and the economic situation and the real estate market will not be balanced before announcement of the election results”, Gujabidze noted. Archil Gachechiladze, the chairman of the Galt & Taggart supervisory board conﬁrmed that the supply to the development market has decreased and the process may go on further. Today, a major part of developers own their own capital. Therefore, it is less expected that the development companies start trying to get rid of their apartments.

HEADLINES GEORGIA DEVELOPS ITS DAIRY PRODUCTION: LACTALIS ENTERS GEORGIA

he representatives of French Company Lactalis and Georgian Company Sante met with Georgian authorities. Lactalis became one of the shareholders of Sante, which will enable company to present Georgian products on international market and develop local production of milk and dairy products. French Company to Georgian market will contribute towards popularization of Georgian dairy products and will foster development of Georgian economy. Vice President of Lactalis Group Michel Nalet provided information to Prime Minister regarding the activities and plans of his respective company. He expressed hope that Georgian cheese will meet international quality standards and will be exported under the Georgian trademark.

FINCA BANK GEORGIA BECAME OFFICIAL SPONSOR OF “DIAMOND CHALLENGE GEORGIA”

INCA Bank Georgia became official partner of EMT- Education and Management team providing financial and professional support to “Diamond Challenge Georgia” for high school entrepreneurs. According to the agreement signed between EMT- Educational and Management Team and FINCA Bank Georgia, Bank will cover administrative expenses of the project and transportation fees of the winning team, which will be representing Georgia on final stage, in USA, April 2016. FINCA Bank Georgia will provide professional support to the winning team as well, and will assist Georgian finalists in preparation of the project for the final challenge. Diamond Challenge, a youth entrepreneurship education program, was created in 2012 with support of Delaware University and a twofold purpose: to expose high school students to entrepreneurship as a viable career path, and to provide high school students with an outstanding opportunity to learn about the entrepreneurial process while attempting to put their ideas for new businesses into action. EMT is official partner of Delaware University and representative of the “Diamond Challenge” in Georgia.

WIZZ AIR AIRLINE TO UNVEIL REGION’S FIRST BASE AT KUTAISI AIRPORT

nion of Georgian Airports of the Ministry of Economy and Wizz Air Hungarian airline have reached agreement to unveil a Wizz Air base at the Kutaisi David Aghmashenebli International Airport in 2016. After successful completion of the multiyear negotiations, Wizz Air, the central and eastern Europe’s biggest low-cost airline will place one airplane at Kutaisi International Airport on permanent basis.

FRENCH FAMILY BAKERY CHAIN PAUL TO OPEN IN TBILISI

nother international French bakery/cafe chain PAUL enters Georgian market. The ﬁrst café of PAUL will be placed in Abashidze str. Opening of the café is planned in April. The company has already opened the vacancies. Part of the staff will go trainings in France. It should be noted, that the ﬁrst café/bakery of PAUL was opened in France in 1889. Today, there are 436 cafes of PAUL in the world.

GEORGIA’S CUSTOM SERVICE SIMPLIFIES WITHIN THE SUPPORT OF GEORGIAN RAILWAYS

lectronic information exchange system has been created by branch of Georgian Railways World Business Solutions, commercial services and Georgian custom ofﬁce. The system enables customs ofﬁcers to control distribution and electronic information of existed cargo. Exchange of electronic information

provides clients and custom ofﬁce to sign documentation in short time. It is worth to mention that until now, custom procedures were hours or maybe days long. Regarding International Customs day, Head of Customs ofﬁce Vladimer Khundadze remarked the importance of working with heads of Georgian Railways. According to him with the help

of Georgian Railways and other international organizations Georgia received modernized and effective Custom office. On a inauguration day director of World Business Solutions Levan Kukava, has been awarded for his contribution to development of country’s custom office, by the General chairman of World Custom organization with the honor certificate.

GEORGIAN JUICE COMPANY LIVO TO ENTER SWEDISH MARKET

IVO, a natural juices manufacturer, will launch exports of its products to Sweden soon. Due negotiations have been completed and the LIVO products will be sold at the Georgian restaurant that was unveiled in Sweden as part of the Georgian House project, Goga Samushia, LIVO partner and director, told BPI news agency. As reported, currently, LIVO exports products to Russia, Estonia and Kazakhstan too.

OTHER SIDE OF BUSINESS

February 8, 2016 #132

caucasus business week

ANZOR KOKOLADZE

CURRENCY EXCHANGE BOOTH WAS MY FIRST BUSINESS UNDERTAKING The founder of Techno Boom network of home appliances stores I AM A LAWYER BY PROFESSION. I STARTED MY FIRST JOB when I founded a limited liability company, a currency exchange booth. I was a student in that period and this business was my first undertaking. MY FIRST SALARY was not a fixed one. I earned about 100 USD from my currency exchange booth. This was a huge amount in that period, while I used to keep no more than 2 USD in the pocket. It was very emotional fact when I earned my first 100 USD. I PERFORM THE BESTAND MOST FRUITFUL JOB, when the business is not a routine one. I am more active in radical process. In indifferent situations I am less active. In general, people get motivated after losses, in trying to survive. This is huge motivation for new efforts. At the same time, successful projects also add much inspiration and motivation. In both cases I am inspired by huge motivation. I GO TO MY JOB PLACE at 10 o’clock every morning. HAVING GOT TO THE OFFICE, FIRST OF ALL, I check my email notifications and then I determine a plan for the due day. THERE IS A FIELD, where I would never work. This is Opera. This signifies I could not be an opera singer, because the God has not granted such a talent to me. I DO NOT AGREE that a person should be ready to do everything for career. In this case, I don not agree taht The End Justifies the Means. However, I believe we have to make certain compromises every time. There are certain redlines in this life that must not be crossed by a person. IT IS DIFFICULT to assert whether making a career is difficult in Georgia. In general, the small-size economies provide fewer opportunities for career growth. Anyway, I believe if a person is zealous and ambitious, success may be achieved in all directions and fields. Naturally, the developed countries and markets provide more opportunities for making career, but the motivation is decisive in both cases. I DO NOT USE SOCIAL NETWORKS, first of all, I do not have enough time. On the other

hand, I would receive a plenty of messages and I would have to answer all them and I would lost much time. It would be awkward not to answer the questions. I USE VTB BANK SERVICES. In the period of our troubles and crisis, when I established Techno Boom, this commercial bank showed the major support and sympathy. Therefore, I am more loyal to this commercial bank. I BUY ALL EQUIPMENT AT TECHNO BOOM. I do not have favorite and special brands. Everything depends on speciﬁc needs and cases. I TRY TO KEEPWARM RELATIONS WITH REPORTERS. I avoid frequent appearance before the media, but I try to cooperate with a reporter who represents economic editions. Anyway I prefer that the media paid less time to me. THE MOST VALUABLE THING in this life is to follow the Gold and the divine principles. This is a wider concept. The main thing is to determine the ways and lifestyle how to reach the God. I AM AFRAID of sins and passion most of all. I avoid these aspects in myself, most of all. I WANTED TO LEARN playing guitar in my childhood. I used to go to the teacher for several months, but I was not success. I failed to do this in that period. As to our days, the ﬁnal goal is to earn as much as possible to help the poor and socially vulnerable persons and to change their lives. I HAD TO TRAVEL MORE PREVIOUSLY, but now I travel rarely. I WOULD LIVE NOWHERE, except Georgia. I can live in any country temporarily, but I cannot imagine myself without Georgia. I DO NOT HAVE FAVORITE DISHES. I am not a squeamish person. I like all dishes. SWIMMING is my favorite sports. I DO NOT HAVE FAVORITE ATHLETES OR TEAMS. I do not like football and I do not watch it. I support when the national team is playing, but not because I like football, but to support my homeland.

BUSINESS

February 8, 2016 #132

caucasus business week

TSIKOLIA Georgian Designer who Manufactures Brand Watches in Switzerland

Zviad Tsikolia, an industrial and automobile designer, is famous for his special designs of Peugeot 1007, Bugatti, Russo-Baltique, armored vehicle of Didgori and other industrial products in the international market. His name is also connected with packing food products, bottles of alcoholic beverages, furniture, uniforms, bicycle, airplane and ﬁnally, wristwatches manufactured in Switzerland with the brand name of Tsikolia, the Georgian surname. The designer drew attention at various exhibitions and contests. Today Zviad Tsikolia cooperates with the largest brands and he manufactures wristwatches of his own brand name in Switzerland. The watches are very popular and they are accessible in Tbilisi too. The main thing is that he has been working in Georgia. The designer has a spouse Marina Khorava and two children: Buba, 16, and Iva, 15. Zviad Tsikolia like all successful persons frankly talks about his experience and visions in his interview with the Metronome. The designer has unveiled the secret of his success:

- When recalling the roots of this history, you noted that you were interested in watches in the childhood. That’s why you have arrived in Switzerland, sealed an agreement and launched the business. Today, this history looks very simply, but what is the secret of your success? In similar cases people refer to fate, hardworking and many other factors. What do you think what factors have helped you in implementing your childhood dreams? - As to the fate, I think of it very little. It is difﬁcult to make business relying on fate. You should subdue the business all around. You

should curb and tame the business, not on the contrary. You should strive for the goal and you should not betray yourself, your love and interests. I recall my childhood as the period of my dreams. I started implementing my dreams after I turned adolescent. - What aspects have you led to the success? Consequently, what is the necessary condition to make any product successful in the international market? - By the way, when I was starting the manufacturing of the wristwatches, I was frequently told it was very difﬁcult to create something new

in this business; I was told that the market was oversaturated by supply compared to the quantity of buyers and I was suggested to cease this useless undertaking. However, I remained devoted to my idea and I was sure I could develop the design that would not leave people indifferent. This factor is interconnected with the Swiss quality and the price. All these aspects bring due results. I create emotions, not only the time indicator. Today even ironы show the time, if we do not mention cellular phones. - What was your main objective when undertaking this business?

Give the Way, please! This was my objective in relation to the companies with 100 year history. - Please, describe the working process, even brieﬂy. What time do you spent on the working process and what are your priorities? - I spent that period of the time that the working process needs.

Sometimes, this is a very tiring process, because you have to think of many details

like adjustment to the production and adjusting the price with the design. All these factors take much energy, knowledge and time. Everything starts by inspiration. When inspiration comes, it makes you develop outlines, drawings and so on. - Why do you use aviation, automobile and maritime themes for inspiration? Does this aspect points to your interest in this field and why? - I think it would be surprising if I were interested in Barbie dollies or glaring costume jewelry, not in airplanes, automobiles and military equipment. Airplanes, vehicles and military equipment is the interest of all males, a major of part of males, and I am not an exception. - Watches manufactured in Switzerland with your own surname. Your future plans may be targeting higher tips. In general, do you plan stages for success in advance and is it a correct approach to the business? - To be frank, I would prefer that many watches be manufactured in Georgia. But this is more difficult than in Switzerland. This is my objective. I hope the economic environment and political situation will enable to fulfill this goal. The goal is planned and then specific situation bring improvisation. The life looks like the jazz, does not it?! The composition is familiar, but it is performed with improvisation… metronome.ge

REAL ESTATE caucasus business week

February 8, 2016 #132

HEALTHCARE

caucasus business week

WHILE GEORGIAN BIG PHARMA IS IN CRISIS

New Player Enters The Market

he pharmaceutical market is passing the crisis period, pharmaceutical companies assert. The GEL exchange rate depreciation has increased prices on medications and this process has brought problems to pharmaceutical companies too, they assure. Aversi founder Paata Kurtanidze says sometimes the company makes no proﬁts for several months.

“On the one hand, we do not want to upset our clients by increased prices. On the other hand, it is very difﬁcult to maintain the company in similar conditions, because a company may bear losses for one, two, three or several months, but the company cannot bear losses forever”, Paata Kurtanidze said. GPC founder David Kiladze openly talks about the problems. The company follows a bailout plan, he noted.

“Our company has developed the so-called

bailout plan against currency ﬂuctuations or similar cases. We have developed this plan and we will follow this plan in 2016”, David Kiladze said. PSP founder Kakha Okriashvili refused the statement that he had made for the GBC news agency. Namely, in his statement Kakha Okriashvili did not rule out an availability of PSP bankruptcy. Now, he has smoothed this statement saying there is no grounds for panics despite serious difﬁculties.

„There is absolutely peaceful situation in the pharmaceutical sector. Naturally, the crisis signs are evident, but there is no ground for panics”, Kakha Okriashvili said. In this situation Humanity Georgia has entered the Georgian pharmaceutical market. Nino Daraseli, the Head of the company PR service, said Humanity Georgia will introduce about 250 medications at 30% lower prices in the near future. “I cannot talk for other companies. I do not possess due information. I can talk about the strategy of our company. We do not make accent on

surplus proﬁts. This is the main thing and I want to stress this factor. Humanity Georgia, ﬁrst of all, is a social company, then a brand and then we follow commercial goals”, Nino Daraseli said. Meanwhile, the Georgian Health Minister says that the traditional pharmaceutical companies in Georgia are confused by appearance of a new player. “I express moderate surprise why they perceive competition as a threat for bankruptcy. Maybe they have something different consideration, but our main objective is to ensure a universal access to medications, because the healthcare budget is not a business development budget”, Georgian Health Minister David Sergeenko said. Paata Bairakhtari, an analyst for the Association of Young Financiers and Businessmen (AYFB), says that the Georgian pharmaceutical market is monopolistic and there are certain doubts the actor companies follow cartel collu-

WHAT HURTS? NEW NATIONAL SURVEY

he social survey-campaign “What Hurts?” was held for Georgian citizens near the Rustaveli and Akhmeteli underground stations in order to outline the current needs in the healthcare sector. Special questionnaires were offered to the citizens for ﬁling it and expressing their position on the current problems and needs in the healthcare sector. The ﬁlled questionnaires were dropped into the special boxes. The inquired citizens were enabled to answer the questions around development and reformation of the health system and express their opinion in this direction.

The social survey “What do You Worry about?” is a joint project of the Ministry of Labor, Health and Social Protection of Georgia and Global Alliance company. The project was launched on January 25 and will last one month. Interested bodies are able to ﬁll out questionnaires at regional ofﬁces of the Health Ministry and on the website www.1505.ge The new initiative will help the Health Ministry to precisely determine the main medical needs in the society. The project was developed to provide more communications with the society and better expose their desires, expectations and needs.

sions. It is surprising when companies with 60-% profits refer to crisis themes. The appearance of a new pharmaceutical company will regulate the market and expand access to medications, Bairakhtari said. „The market is closed and several companies determine the rules of game. Regretfully, the population has to accept these rules. When companies receive surplus profits, naturally they do not want a new company to enter the market that is expected to set real tariffs and establish valuable competitive environment”, Paata Bairakhtari said. Humanity Georgia is expected to introduce medications to the market in several weeks. It is difficult to predict what results the new company will bring to the Georgian pharmaceutical market. The fact is major players have already started lowering prices on medications.

BANKING NEWS caucasus business week

February 8, 2016 #132

TBC BANK BECOMES GENERAL SPONSOR OF GEORGIAN RUGBY UNION

uby is Our Game – TBC Bank has become a title sponsor of the Georgian Rugby Union and the National Team. The decision was unveiled at the joint news conference that was held today with the participation of the TBC Bank managers, the Rugby Union representatives, rugby players and reporters. Under the bilateral agreement, TBC Bank has become a general sponsor of the Georgian Rugby Union, the national rugby team, Georgian rugby teams of all age categories. Moreover, TBC Bank is one of the main partners of the National Sevens Team. The main objective of this cooperation between the Georgian Rugby Union and TBC Bank is to establish rugby and rugby values in the Georgian society and to make rugby an inseparable part of the Georgian culture and to enhance

its popularization on both domestic and international levels. “Today two successful brands TBC Bank and Georgian Rugby have laid a cooperation foundation to make the Georgian society happier. We should regain the feeling of victory. Rugby is not only a variety of sports. This is a philosophy of achieving the victory. To achieve the victory, you should move every time. Therefore, rugby is interesting sport for us and Rugby is Our Game!”, Mamuka Khazaradze, the head of the TBC Bank supervisory board, told the joint news-conference. Under the long-term cooperation, the Georgian national rugby team will get ready for the 2016 Rugby Europe championship with the support of TBC Bank. The parties plan to carry out many joint events and campaigns, including social projects and ren-

ovation of the Rugby branded store. On February 6, in the ﬁrst meeting of the Rugby Europe championship, the Georgian national team will meet with Germany and the Georgian national team will play under the TBC Bank brand name. In 2017 Georgia will host the world rugby under-20 championship. The Georgian national team will play under the TBC Bank brand name.

„We express deep gratitude to TBC Bank for its support. We have paved our way to the present with victories and we will continue this way jointly with the partners, with which we

have joint visions. We promise our society to make rugby a people’s sport and we will reach this objective jointly with the new partners”, the Georgian Rugby Union president Gocha Svanidze said. Georgian traditional LeloBall takes origins in the ancient times. The contemporary rugby game is an honorable continuation of this tradition. This is a heritage that should be transmitted to the next generations and TBC Bank team is happy to make a considerable contribution to this important national project.

WORLD NEWS

February 8, 2016 #132

caucasus business week

ZIKA VIRUS: WHAT IS IT, WHAT DOES IT CAUSE AND HOW BAD CAN IT GET?

he Zika virus has been around for more than 60 years - but it is only in the past year that scientists and health experts have become seriously worried about it. In the past few weeks, the disease has gone global. This week, experts warned Europe should be prepared for the virus to spread through the continent in the summer. The US is also increasingly at risk, with Florida declaring a state of emergency on Wednesday. Since April, the virus has spread quickly. There have been conﬁrmed cases affecting more than a million people so far.

Transmission is currently active in at least 30 countries across the Americas, Paciﬁc islands and Cape Verde, while Zika has also appeared in Australia, Ireland and several other European countries after tourists were infected abroad. There is no known cure or vaccine. The virus was believed to be exclusively spread by mosquitos until authorities in the US reported a patient had caught it through sexual contact. The World Health Organisation (WHO) has described it as having potentially “explosive pandemic potential” and the authority has declared a global public health emergency on 1 February.

WHAT IS IT EXACTLY? Zika is a mosquito-borne disease that normally has symptoms similar to the dengue and chikungunya viruses, which are spread by the same genus of insect. Named after the Zika Forest near Lake Victoria in Uganda, where it was ﬁrst isolated in 1947 from a captive monkey, it has since spread across equatorial Africa and, more recently, to Asia, Paciﬁc Polynesia and now South America, but only 14 “sporadic” human cases were detected until 2007.

That was when the ﬁrst documented outbreak of the disease occurred on the Paciﬁc island of Yap. At that time, the virus was not considered to be dangerous as only mild symptoms were recorded and there was no link made to birth defects or microcephaly. Another outbreak in French Polynesia in 2013 also caused little concern but transmission that started in Brazil last year, as well as in Cape Verde, has been linked to brain damage to foetuses that can cause lifelong cognitive and health problems.

European Investment Bank to allocate 1B euro for TANAP

1.3 mln Turks faced legal proceedings over bank debt in 2015

The oil crash has darkened Russia’s long-term economic picture

BP preparing Shah Deniz 3 project implementation

he European Investment Bank (EIB) will allocate one billion euros to finance the construction of the TransAnatolian Pipeline (TANAP) project, Bloomberg reported with reference to EIB VicePresident Pim Van Ballekom. He said that the funds will be used to finance Turkish Botas company’s share in TANAP. Pim Van Ballekom added that the World Bank (WB) will also allocate some funds. “The bank is expected to approve the loan till late April 2016,” he said. “The first tranche will be allocated in August.” TANAP project envisages transportation of gas of Azerbaijan’s Shah Deniz field from Georgian-Turkish border to the western borders of Turkey. The initial capacity of TANAP is expected to reach 16 billion cubic meters of gas per year. Around six billion cubic meters of this gas will be delivered to Turkey and the remaining volume will be supplied to Europe. Turkey will get gas in 2018 and after completing the construction of Trans-Adriatic Pipeline (TAP), it will be delivered to Europe in early 2020. Currently, the shareholders of TANAP are: the State Oil Company of Azerbaijan (SOCAR) – 58 percent, Botas – 30 percent and BP – 12 percent.

he number of Turkish citizens facing legal proceedings due to personal loan defaults and credit card debt rose by 3 percent year-on-year in 2015 to 1.33 million, according to a report released by the Turkish Banks Association (TBB). The TBB report indicates that 1.3 million people are facing legal action due to outstanding debts. The rate was higher among holders of credit card debt than those with personal loans. The number of people against whom legal proceedings are being pursued due to personal loans surged 8 percent in 2015 compared to 2014, to 725,000, the TBB said on Thursday, while this number was up 2 percent to 1 million in credit card debt. Turkey is known for having quite a low domestic savings ratio while consumer spending has been bolstered by credit card debt and personal loans that more and more consumers are unable to pay off. Meanwhile, three major Turkish private lenders suffered 5-10 percent declines in profits last year, the banks separately announced this week. Turkish private bank Yapı Kredi posted a net profit of TL 1.86 billion ($629 million) in 2015, down around 10 percent from a year earlier, it said in a statement late on Tuesday. Rival lender Akbank posted a net profit of TL 2.99 billion for 2015, down 5 percent from a year earlier, it said in a statement on Tuesday.

ack in November, it looked like the worst might finally be over for Russia’s economy. But the renewed drop in oil prices has analysts worried that Russia’s looking at another rough year. “The recent run of weak data, coupled with the latest fall in oil prices, has prompted us to revise our forecasts for Russia,” wrote Capital Economics’ Liza Ermolenko in a recent note to clients. “We now expect the economy to contract by 1.3% this year and grow by just 0.5% in 2017, both of which are below the consensus. Meanwhile, inflation is set to remain in double digits for the best part of 2016,” she added. Barclays’ Daniel Hewitt forecast slightly more positive figures with a 1.0% decline in 2015, and a 1.5% recovery in real growth in 2017. Notably, these revised forecasts have been attributed to the “lower for longer” oil environment. For those who may be unfamiliar, Russia’s economy heavily relies on the commodity. After falling about 10% in the first two days of the week, crude spiked on Wednesday. Currently, Brent is trading at $34.27 per barrel, and WTI is trading at $31.84 per barrel. Oil has fallen more than 70% since June 2014. The ruble rebounded following the oil jump on Thursday. The Russian currency is currently trading around $76.75 per dollar.

P Azerbaijan has conducted a 3D seismological survey at the Azerbaijani Shah Deniz gas and condensate field to obtain data on possible realization of the third phase of the field’s development, Greg Riley, BP Azerbaijan vice-president for exploration and development, told reporters Feb. 4. “The 2D seismic survey was conducted in the shallow waters around the Absheron Peninsula at a sea depth of more than 15 meters,” he said. “During this survey our contractor Caspian Geophysical also held 3D seismic survey on the Shah Deniz field through the Gilavar vessel.” “This has allowed us to collect certain data on the opportunities of further development of the field,” he said. “The analysis of these data will begin in the fourth quarter of 2016.” Riley said that this issue has not been a priority yet as the company has focused on the second phase of the field development. “The interpretation of data for the third phase has not been a priority. However, we are constantly looking for the opportunities for the Shah Deniz field further development.” Earlier, BP expressed intention to continue cooperation on the third phase of development of the Shah Deniz gas field with SOCAR (the Azerbaijani State Oil Company).

INFOGRAPHICS caucasus business week

February 8, 2016 #132

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

February 8, 2016 #132