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May 9, 2016 #144
May 9, 2016, Issue 144 - www.cbw.ge
Bank Product
Business
Energy sector
VTB Bank’s Fast Loan for 260% Interest Rate
MarilisiGeorgian Soul in Jewelry
Azerbaijan’s Role in Georgia’s Energy Security
Pg. 4
Abkhazia
Pg. 9
Pg. 7
43% of People in Georgia Do Not Use Internet
Pg. 6
Georgia’s Pearl Huge Perspectives for Economic Development
According to Caucasus Research Resource Center more people are using the internet on a daily basis in Georgia, latest research shows. On a question how often do you use internet, 40 percent of respondents said they used the internet every day, which is 5 percent higher than last years data.Results of a survey of 2,032 people, carried out earlier this year by the organisation. Last year 35 percent of respondents used the internet daily. According to this survey the number of people who never used the internet had reduced slightly.However research showed 43 percent of respondents said they never used the internet, while in 2015 46 percent of people had the same answer. A similar survey was conducted in 2013, by that time 47 percent of respondents said they used internet. This year, only 1 percent of respondents said they have never heard what the internet is. Research showed most people used the internet to visit social network sites. The second most reason for using the internet was to search for new online. 10 percent used internet to read blogs and 7 percent to play internet games. Facebook was the most popular social network in Georgia, showed the research. Forty percent of respondents said they used Russian social network Odnoklasniki, while Twitter had very few followers in Georgia.
Countries from Which Most of the Tourists Visiting Georgia In April 2016, in Georgia, the number of visitors increased by 17.2% and amounted to 462 480 visits. From there, 171 235 visits were performed by tourists, which is 37% of the total amount compared to the previous year’s same period. Thus, the index faced 20% increase. 107 500 transit visits were defined as it is 23.3% of the total number, compared with the previous year’s indicator which made up 13.5%. Other types of visits amounted 183 745 million, which is 39.7% of the total amount, with an increase of 16.8% in the previous year’s outcome. As for the January-April period, 1 596 916 visits were made in the country, which is 15.4% more than the figure for the same period in 2015. In April 2016, most of the visitors were from Turkey (+12%), Azerbaijan (+ 17.6%), Armenia (+ 8.7%), Russia (+26.7%) and Ukraine (+25.9%) .
2 GOVERNMENT
NEWSROOM Economy Minister Forecasts $1.6 billion FDI Inflows in 2016 Georgian Economy Minister Dimitri Kumsishvili expects the country to draw 1.6 billion USD foreign direct investments (FDI) in 2016.
Meeting of the Economic Council Positive trends in the Georgian economy, progressive dynamics in tourism industry and macroeconomic parameters were discussed today at the meeting of the Economic Council that was attended by the representatives of the NBG.
ECONOMY
In terms of EPI Georgia keeps 111st Position among 180 Countries The so-called EPI, is a method of quantifying and numerically marking the environmental performance of a state’s policies. Thus, EPI ranks countries’ performance on high-priority environmental issues in two areas
GEL-denominated Deposits Rise by 42.5 million Deposit liabilities in the bank system decreased by 347.8 million GEL (-2.4%) to 14.6 billion GEL because of declination in GEL indicators of foreign currency denominated deposits.
BANKING
National Bank’s International Reserves Grow by 29 million USD In March the official international reserves of the national bank of Georgia (NBG) increased by 29.4 million USD as compared to February 2016.
May 9, 2016 #144
Georgia Looks to Deep-sea Ports to Raise its Profile in China’s Silk Road Plans Georgia might not have actually been on route of the ancient Silk Road, but sitting at the crossroads between east and west, straddling trade routes between Asia and Europe, this former Soviet republic is well placed to be part of Chinese President Xi Jinping’s ambitious Silk Road Economic Belt and Maritime Silk Road projects. The Black Sea provides a natural gateway, and so Georgia is looking to ports to help it play a major role in China’s plan to revive this network of trade routes from Central Asia to Europe. One of those is the Anaklia Port Project, which involves the construction of a deepwater port at the coastal town of Anaklia, a sleepy resort town that sits on the shortest route from China to Europe. This project took a big step forward in February when the government awarded the Georgian-US consortium Anaklia Development Consortium (ADC) the right to build the port. Once completed, the 400-hectare port will stretch 2.5 kilometres along the coast. In addition, ADC has
received the rights to develop and operate a free industrial zone on about 600ha of adjacent land for 49 years.
Logistics experts maintain that the new facility will give a huge boost to Georgia’s economy, which was hard hit in 2015 by falling oil prices, declining exports and a weakening currency. “The port can potentially increase the business flow tremendously,” reckons John Braeckeveldt, regional manager of the Belgium-based logistics group Gosselin. “Currently it takes about 40 days for containers from Antwerp to reach Poti due to the stop-over in Istanbul. It is a very busy port and delays are regular practice, not an exception. Bypassing Istanbul would cut the transport time by two to three weeks.”
The delays stem from one of the gaps in Georgia’s transit infrastructure: the inability of the country’s two existing ports at Batumi and Poti to host Panamax-size vessels. Currently, such large ships with Georgia-bound cargo are forced to use other docks in the Black Sea region, mainly Istanbul, where containers are reloaded onto feeder ships, carrying a maximum of 1,700 containers and heading for Batumi or Poti. Anaklia is not the only facility looking into filling that gap. Last year APM Terminals, part of world’s largest container ship operator AP Møller-Maersk, which operates and has owned an 80% stake in the port of Georgian port of Poti since 2011, announced a “large-scale port expansion” plan. The project, expected for 2018, foresees the construction of two new deepwater berths able to accommodate vessels with capacities of 9,000 TEU (twentyfoot equivalent units) and an annual throughput capacity of 1mn TEU.
Commercial Banks’ Credit Portfolio Shrinks by 241.4 million GEL In March, as compared to February, commercial banks have cut credit injections in the economy by 241.4 million GEL and the crediting volume fell to 15.62 billion GEL.
BUSINESS
Georgia To Set up 35 million Financial Institution for Funding Startups A new financial institution will start operation to finance startup businesses, Georgian Prime Minister Giorgi Kvirikashvili noted at government meeting.
Henkel Completes Enterprise Construction in Gardabani Henkel, one of the world’s distinguished companies from Germany, has completed the construction process of a plant in Gardabani.
COMPANY
Martkopi Nursery to Spend 2,5 Million for the Development of Farm Namely, the company takes commitment to make investment not less than 2 509 408 GEL and provide supply of not less than 1 000 000 l milk and not less than 2500 kg meat.
Georgia Stands 17th Position in terms of Tourism Share According to the World Travel & Tourism Council (WTTC) Georgia’s economy keeps 17th position in terms of Tourism’s direct contribution to GDP. WTTC published 2016 report. It is already 25 years the organization has been working and conducting researches on the economic and social impact of the travel industry in the world countries. In addition, WTTC analyzes Tourism impact among 184 countries’ economies by taking into consideration various indicators. According to the report published in 2016, the GDP share of tourism sector has increased from 2009 and it is characterized having growth trend in the future. The organization estimates from 3.5% to 3.9% growth of
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tourism and travel’ share in the volume of national investments. In addition, based on the information obtained from the report, 20% of employees in Georgia accounted from Tourism sector in last year 2015. WTTC expects 3.5% growth in the current year. As for the position Georgia stands compared to other countries, based on the report, in this year the GDP share of travel and tourism growth will be 5.9%. In contrast to Azerbaijan and Armenia it will amount 4%. By taking a look at the travel and tourism industry’s direct contribution to GDP Georgia keeps 17th position, however in terms of total contribution it stands the 25th place. Notably, according to the 2015 data, Georgia was ranked 37th, while the total contribution to
GDP, it was keeping 27 th place. As for the other countries: the direct contribution of tourism to the economy, Azerbaijan is 59 th place, Armenia 60th, Bulgaria 65th, Ukraine 111th, Russia 144th, while Turkey is the 161 th place.
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Growth of K2 Coefficient will be Restricted in the Central Part of Tbilisi
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Countries of TransCaspian Route are Working on the Joint Route
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What Happens to Gold and Silver Price in Georgia?
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April Records 20% Upturn in Tourist Inflows
Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nino Kuparashvili, Lazare Gvimradze; Shiva Parizad. Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze
Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge
May 9, 2016 #144
PUBLICITY
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BANK PRODUCT
EU is largest investor in Georgia
JANOS HERMAN
European Union Ambassador to Georgia
May 9, 2016 #144
VTB Bank’s Fast Loan for 260% Interest Rate
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The EU high official visited Georgia’s capital Tbilisi and attended the ‘European Companies in Georgia: Growing Trade and Investments’ business conference alongside local businessmen. Investments are one sphere while trade is another. As we can see, since the Deep and Comprehensive Free Trade Area (DCFTA) took effect, the EU has become the largest investor in Georgia meaning that it is the largest trade partner of Georgia,” Herman said. Georgia signed its Association Agreement (AA), which included the Deep and Comprehensive Free Trade Area (DCFTA), with the EU in June 2014. When I say the EU I mean its 28 member countries. I expect that this conference will allow us to evaluate what is happening regarding implementation of the free trade agreements,” he added. Hermann said agriculture was the first sector where the trade was supported in Georgia and other sectors would be gradually included over time. More and more Georgian agriculture products will have tariff-free access in the EU market. Some Georgian products already appear on supermarket shelves in Sweden and Germany,” he said. We hope to see more similar successful examples in the future. … Export to the EU requires high standards and quality”. Herman hoped more Georgian companies would soon be able to export their goods to the EU
VTB Bank’s Online Credit Offers One of the Most Expensive Credit Products on the Market
MERAB JANIASHVILI Economic Analyst
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PASHA Bank Easter Charity PASHA Bank congratulated its partners and clients on Easter in a traditional way: on behalf of its stakeholders the Bank transferred the amount to charity organization SOS Children’s Village that will be used to fund full-year English language courses for all university applicants living in the Village. Association SOS Children’s Villages Georgia is a non-profit organization operating in Georgia since 1989. It aims to protect the rights of the children at risk of losing or deprived of parental care and to provide support to the vulnerable children through community based and alternative child care services with the purpose of children’s socialization and social integration. “PASHA Bank has been providing a full range of corporate and investment banking services in Georgia since 2013. For all of this time we have kept corporate social responsibility at the cornerstone of our presence in Georgia and we have carried out a number of charity and social activities to date. Last Easter we made quite a significant donation to the charity fund “First Step Georgia”. This year too, in keeping with our tradition of doing a good deed and made a donation to SOS Children’s Villages Georgia on behalf of our partners and employees,” – said Anano Korkia, Head of PR and Marketing at PASHA Bank. “On behalf of SOS Children’s Village I’d like to thank PASHA Bank for the donation and underline that any contribution to our children’s education guarantees their better future. We strongly believe that PASHA Bank – our new reliable friend – will be a role model to promote active involvement from businesses and will have a positive influence on lives of certain individuals as well as the society as a whole.” – said Nodar Topuridze, advocacy advisor at SOS Children’s Villages Georgia.
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We should remember that this is an artifice and we should take a loan after having explored the real value of a credit
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igh interest rates on online credit products have shadowed expensive loan products of commercial banks. However, commercial banks have not cheapened their credit products anyway. It should be noted commercial banks also issue the socalled fast and expensive loans, but Georgian citizens pay less attention to this factor, because commercial banks are considered a more reliable finance segment, as compared to online credit organizations. Georgia-based commercial banks conveniently use this trust and/or clients’ ignorance and offer expensive credits to clients, for unreal 0%. Several commercial banks issue fast loans, including VTB Bank Georgia, which offers credit products through its Online Credit organization. Online Credit issues a fast loan in several seconds, the bank representatives noted. “Do you urgently need money? You can enjoy VTB Bank’s Online Credit products; fill out an online application and take an about 500 GEL loan exactly in 5 seconds, in any time of the day. Online Credit is available for both VTB Bank salary program users and current credit borrowers”, the VTB Bank Georgia website reads. The credit’s specific conditions are as follows: loan’s minimum sum – 50 GEL, maximum amount – 500 GEL. The loan’s maturity period makes up 30 days. The loan is issued in only GEL. The issuance commission fee is 10% (at least 20 GEL). A loan may be withdrawn in 5 seconds after sending the application for the 24/7 period.
At the same time, it should be noted VTB Bank online loan is for only its own clients. Those who enjoy the bank’s salary program are able to take credits or/and have active credit in the bank. What is necessary to take a loan? For VTB Bank salary program clients: • Minimum income requirement for the client – 400 GEL; • Transfer of salaries to the bank account for at least three months; For VTB Bank’s non-salary clients: • Current Loan in VTB Bank; • Transfer of salaries to the bank account for at least 4 months; The information released by the Bank contains no reference on the loan interest rates and it is advertized as an interest-free credit. However, there is no interest-free loan in the nature and VTB Bank Online Credit could not be an exception. Jointly with its commission fees, the loan’s annual effective interest rate makes up several hundreds of percent. We remind the readers that the loan’s annual effective interest rate is an interest rate, which includes all necessary financial expenditures required for service of this credit and the period for serving this credit. Under the conditions of the VTB Bank Georgia Online Credit, clients must pay one-time commission fee for taking a credit that makes up 10% of the sum, at least 20 GEL. For example, if the client takes a 300 GEL loan, only 270 GEL will be transferred to the client’s account, while the cli-
ent will have to return 300 GEL in 30 days. Under the mentioned credit’s conditions, the annual effective interest rate makes up 261%, while if you take less than 200 GEL, you will have to pay 20 GEL commission fee anyway, that is more than 10%, and the loan’s final interest rate will be higher. Thus, we should not trust attractive advertisements of commercial banks that offer various sorts of loans at 0% interest rate. We should remember that this is an artifice and we should take a loan after having explored the real value of a credit.
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400,000 Gel To Be Invested in Construction of Container Storehouse at the Black Sea Coast
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A few Months before an Election, the Land Registration to be Free of Charge in Georgia
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Georgian Wines May Enter Mozambique Market
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Azerbaijan’s SOCAR: No Financial Obstacles to Developing TANAP Project
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Georgia to hold 2016 CAMCA Regional Forum
May 9, 2016 #144
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ECONO-MIX
May 9, 2016 #144
Abkhazia – Georgia’s Pearl Huge Perspectives for Economic Development We have contacts and respective demand for relations. Consequently, we have positive attitudes. And positive support will create wealth and increase economic activity”, Chargeishvili said. The existing railroad infrastructure does not work because of understanding reasons. The section from Ingiri to Oqumi is subject to full rehabilitation. This section should be reconstructed and this is also a huge resource, Chargeishvili added.
NINO KUPARASHVILI
Twenty-three years have passed since the military invasion of the autonomous republic of Abkhazia. The Pearl region of Georgia maintains its relevance until today. After announcement of the so-called independence, significant economic decisions were taken in the secessionist region, but these steps were insufficient and local residents still remain impoverished. It should be also noted that certain economic benefits were achieved at the expense of financial injections from the Russian Federation. In 2005-2013, “the Russian assistance” exceeded 17 billion Rubles (500 million USD under the then exchange rate). This injections were of intense character in 2010-2013 years and the money flows to Abkhazia made up 11.9 billion Rubles (340 million USD). Experts assert that the Russian Federation could easily recover the tiny economy of Abkhazia, but high-level corruption, clan interests and inexperience in governance, have created an entirely apposite reality. Some experts also say that the 35% devaluation of Georgian Lari amid 100% depreciation of Russian Ruble since 2014, has improved Georgian economy indicators and this argument has become a positive and weighty ground for conversation with Abkhazia. What are the economic benefits that Georgia can reap from Abkhazia?
Tourism, as a Backbone of Georgian Economy Economic expert Gia Khukhashvili asserts that Abkhazia integrated in Georgia would bring huge benefits to the whole state economy. The Abkhazia coastline is one of the best resort zones in the Black Sea region thanks to its natural conditions. Namely, the Gagra-Bichvinta zone creates optimal resort conditions.
Abkhazia would be Georgia’s backbone in terms of tourism sector development, Gia Khukhasvhili said. Economic expert Demur Giorkhelidze also underlines huge economic potential in the Abkhazia tourism sector. We should not
The demand for supply and reception of Georgian social-economic services is huge in Abkhazia, Chargeishvili said. Abkhaz politicians and political experts openly speak about similar needs, he added.
Abkhazia – Attractive Investment Direction
TRADE AND TRANSPORT RELATIONS Railroad artery connecting with the Russian Federation crosses Abkhazia and naturally, this route is of crucial importance for developing the North-South transit potential, Gia Khukhashvili said. “Despite these problems between us, Russia is one of the main trade partners of Georgia. Consequently, Abkhazia is rich of citruses and this resource may be employed actively”, Khukhashvili noted. Certain free zones will be very popular and efficient in Abkhazia, Khukhashvili added.
consider the Region from only the economic point of view. It is an inseparable part of the Georgian culture, both for Georgian and Abkhaz peoples. As to economy, Abkhazia is a very strong region in terms of tourism development. Unique tourism climate preconditions constant inflow of tourists, Demur Giorkhelidze noted. At the same time, Abkhazia is a communication axis with Russia. “From the standpoint of only logistics, economic relations with Russia are very useful for Georgia, because it is difficult to find more convenient communication region for Georgia. This does not signify we should not seek other major markets worldwide, on the contrary, however, this is reality and we have not employed these resources yet”, Giorkhelidze noted.
“Naturally, Abkhazia possesses huge economic potential. Abkhazia is called as a Pearl of the Georgian State. Besides political and social, humanitarian issues, from the economic point of view, this is a very important region. Will this region bring much benefit to Georgia? I think benefits should not be measured by only money; it should be measured, first of all, in terms of long-term strategic economic stability. Georgia will gain much benefit from that”, Khukhashvili noted.
Sokhumi was Only Region in the Caucasus, Where Pepsi was Bottled Business and taxation law specialist Akaki Chargeishvili says that after the Soviet Union collapse, hostilities were unleashed in Abkhazia, while the region possessed huge infrastructural facilities, including sanatoria, factories, plants, various lemonade enterprises. Sokhumi was an only place in the Region, where Pepsi was bottled. Air communication component was also very important. “Sokhumi airport, Gudauta military airport, Akhali Atoni, grottos, rivers, natural resources – Abkhazia
is rich of natural resources. I cannot specify what will be the effect on GDP, because I do not hold specific figures, but the reality is that we own this potential. First of all, the economy should be recovered. This may be achieved through certain attitude. For example, permanent problems are arising at administrative lines in the fruits and citrus season, and people cannot communicate with each other, transport products and so on. Active efforts should be taken in this direction. Therefore, this will be a huge positive message for any citizen, and not for only Abkhazians, but everybody who want to carry out certain economic activities through Abkhaz resources. People, thanks to their attitudes and moods, create positive effects.
Abkhazia possesses much higher tourism potential compared to all other Georgian resorts altogether, economic expert Beso Namchavadze noted. No project has been implemented there for many years and this situation is very interesting for investors. “There is huge potential to make investments. Batumi potential has been fully employed, in practice. While in Abkhazia everything may be developed anew. Therefore, making investments in Abkhazia will bring fastest and huge economic growth”, Namchavadze said. It should be noted that under the 2007 decree of the socalled president of Abkhazia, all sorts of economic relations with Georgia are considered illegal (for security purposes), all trade products delivered from the Georgian side are considered smuggled goods. At the same time, the Georgian legislation has not either specified clear legal frameworks for similar relations: On the one hand, transportation of products to secessionist Abkhazia from the remaining part of Georgia is considered an internal turnover, on the other hand, the law on Occupied Regions adopted in 2008 considers all sorts of economic relations, including commercial activities on the territory of Abkhazia as illegal (however, certain exceptions are admitted anyway).
ENERGY SECTOR
May 9, 2016 #144
Azerbaijan’s Role in Georgia’s Energy Security Discussion about availability of deteriorating partnership relations between Azerbaijan and Georgia arose after Georgia conducted negotiations with Russian state company Gazprom over growth in gas transit volumes. These countries have passed a long way of partnership political relations. Naturally, Azerbaijan, as our neighboring country, is one of the main important strategic partners for Georgia.
ANDRIA GVIDIANI AYFB Analyst
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esides political relations, our countries have also gained important experience of partnership in the energy field. The objective of cooperation between the two countries aim at diversifying energy resources and routes. At the same time, these countries make contribution to the European energy security issues. Georgia and Azerbaijan established diplomatic relations more than 20 years ago. Strategic partnership between these two countries has been preconditioned by objective and subjective geopolitical reasons, in most cases. Our countries have not launched cooperation under the ruling of either the United National Movement (UNM) or the Georgian Dream coalition. After the Soviet Union Collapse, Georgia and Azerbaijan became independent countries and naturally, it was necessary that the Post-Soviet countries launch new relations. Moreover, in 1996 our countries signed an agreement on friendship, cooperation based on mutual assistance and good neighborhood principles. If we overview the ruling period of Saakashvili or the Georgian Dream, it is evident the power change has not particularly revised our cooperation. This is natural, because the strategic partnership and bilateral relations always prevail over political goals of this or that specific regime. However, it should be noted under the ruling of the Georgian Dream, the TransAnatolia (TANAP) pipeline construction project was inaugurated. Naturally, similar large-scale projects take Geor-
gia-Azerbaijani strategic partnership relations to higher levels. Therefore, Georgia and Azerbaijan should cooperate in constant regime in different fields to deepen the strategic partnership. Taking into account geopolitical situation in our countries, any ruling political forces in our countries should enhance cooperation to follow common goals and jointly overcome all challenges. Besides our cooperation in political aspects, the power sector represents the most important field of cooperation between our countries. On the one hand, Azerbaijani is a country rich of natural resources and this is one of the fundamental issues for Georgia’s energy security.
On the other hand, based on the geopolitical location, Georgia remains the most important strategic partner for Azerbaijan. Both countries are interconnected through such large-scale and regional-importance energy projects as Kulevi Oil Terminal, Baku-Supsa and Baku-Tbilisi-Ceryhan oil pipelines, Baku-TbilisiErzurum gas pipeline and the above-mentioned TANAP gas pipeline. It is evident that involvement of both countries in large-scale international projects will essentially upgrade energy security issues. It should be also noted Georgia and Azerbai-
jan have signed a special agreement on cooperation in the energy sector. The agreement calls for active development of bilateral cooperation in electricity, oil and gas fields. The Energy Bridge project that connects power systems of Azerbaijan and Georgia includes the high-voltage (500kv) transmission line. This infrastructure enables to connect power networks of Turkey and Azerbaijan via Georgia. Naturally, cooperation in this respect raises higher interest in the strategic partnership enhancement. Along with Georgia’s economic development, naturally, the demand for energy carriers also grows. Currently, Georgia’s natural gas consumption exceeds 2 billion cubic meters and this volume will permanently increase along with the gasification project expansion. Moreover, Georgia’s electricity consumption grows every year and the ratio of steam power plants in the electricity generation sector also rises. Moreover, vehicles are actively moved to natural gas systems and commercial gas consumption further grows. As a result, the statistics shows that natural gas consumption has increased by 147% in 2003-2014. At the same time, it should be noted the Gardabani combined-cycle steam power plant was inaugurated and the facility’s daily natural gas consumption is about 1 million cubic meters. Moreover, Georgia records the so-called peak periods in winter season. Consequently, the mentioned steam power plant will also work in winter period and this will be additional burden in the peak periods.
7 The above-mentioned analysis suggests that the Georgian government’s negotiations on natural gas diversification were dictated by real energy security enhancement needs, in practice. About 90% of Georgia’s natural gas market is supplied by Azerbaijani gas. Therefore, it is natural for many years SOCAR has grown into a market monopolist. Moreover, SOCAR is developing the retail network and the gasification process in intense regime and, besides the wholesales trades, SOCAR grows its market ratio in the retail sector too. When discussing monopolies, we should also remember that SOCAR is an only supplier in the motorgas market and it controls a considerable part in the retail network. In 2014 SOCAR increased supply tariffs to competitors in the retail network, while decreased wholesales tariffs within its own network. As a result, a part of competitor companies went bankrupt and SOCAR additionally strengthened positions in the retail network. Later, the company increased tariffs in its network too. This monopolistic decision has damaged the autogas market and Georgian consumers.
Under the recently concluded memorandum, Georgia will receive additional 500 million cubic meters of natural gas from Azerbaijan. At the same time, SOCAR has expressed readiness to lower tariffs on 1000 cubic meters of commercial gas by 35-40 USD for gas fueling stations. At the same time, SOCAR and Azot have reached an agreement on natural gas supply at preferential tariffs (as reported, Azot plant is one of the major consumers of natural gas and its annual consumption makes up 300 million cubic meters). Pragmatic appraisal of this situation suggests that SOCAR decided to revise tariffs only after the Georgian government and the Energy Minister conducted active meetings and negotiations with Russian Gazprom. Furthermore, Georgia will start constructing its first gas storage reservoir by the end of 2016 to store 210-280 million cubic meters of natural gas. SOCAR has expressed much interest in implementing this project and supposedly, the Azerbaijani company will be involved in the project implementation. Naturally, SOCAR involvement will further expand its monopolistic positions. Market diversification and creating competitive environment is one of the important challenges before the Authorities. In any case, I believe the Georgian government should not suspend negotiations with new suppliers for the purpose of market diversification. The energy market is a specific segment, where natural monopolies are created in most cases. Naturally, in similar situations it is very difficult to improve competitive environment, but if the market is regulated properly, competition may be geared up in the supply chain.
Under the Georgian regulations, admission of the third body into the natural gas sector is entirely deregulated and therefore, real competition may be achieved by inviting new supplires to the market. Besides SOCAR, Georgia is able to receive natural gas from Russia. For many years Georgia has received a certain volume of natural gas from Gazprom. Appropriate infrastructure exists with Iran through both Armenia and Azerbaijan. Naturally, Georgia should make a maximal use of similar opportunities and create competitive supply market. It should be stressed the natural gas market diversification will not harm Georgia-Azerbaijan strategic partnership format. I believe. Besides energy projects, our partnership is based on deeper political and geopolitical aspects. Therefore, I am sure, despite any scenario in our energy relations, Georgia-Azerbaijan friendship and strategic partnership will last forever.
8 TBC Bank Wins the Competition of “Business for Gender Equality”
BUSINESS PERSON
May 9, 2016 #144
I would Never Work to Fulfill Superior’s Instructions
TBC Bank won in the competition of “Gender Equality for business – to promote women’s education and professional development”, that was held under the patronage of The Millennium Challenge Account – Georgia (MCA). There were 29 participant Georgia-based organizations taking part in the competition. The main objective of the competition was to reveal such organizations which establishing women’s professional development as gender equality can promote much needed economic growth in the developing world.
TBC Bank to host a London Capital Markets Day According to TBC Bank, the bank will host a Capital Markets Day on Friday 13 May 2016 in London. This will be the first time that TBC Bank has hosted a Capital Markets Day, and the bank looks forward to providing investors and analysts with the opportunity to meet the Bank’s senior management team and receive a detailed insight into the business. The event will be held at Sofitel London St James Hotel and it will be opened by the Georgian Prime Minister. The bank will introduce news to the society, attending at the event, on its own risk management, retail banking activity, corporate banking and small and middle banking. They should submit bank’s business strategy, information of finical data and etc.
TBC Expanded its Network of Cashback Partners TBC Bank made a statement concerning about cashback partner’s network expansion. Trade and service facilities will be added the travel agency “Temi Travel”, where the user retrieves back 5% of the amount paid. In addition, 5% is also the cashback on “Taxi Max” services, too. The offer is valid in case having the Status Card, TBC Platinum, Prime Platinum Card, Prime Gold Card, Classic and Payments via Contactless card or Pay Sticker.
Mamuka Khazaradze Head of TBC Group supervisory board MARIAM KOPALIANI
I am a mechanical engineer by profession. I have graduated the polytechnic institute of Georgia. Later I finished Executive MBA threeyear course at Harvard Business School in 2003. My first job place was at the scientific-research institute. I was a head of the department (I used to supervise the department of female research workers). My first salary accounted for 100 Rubles. To be a success in business it is necessary to have belief in what you do, devotion to the business, inspiration, justice in relations and naturally, a team of properly selected people. Young People are able to achieve success in Georgia. - There is much potential of development in our country. The main thing is that young people should properly choose field of education, as well as desirable business.
I would advise young beginner businessmen to gain as much knowledge as possible, not to escape some king of jobs, never cheat partners and work hard for achieve success. I visit office under free regime. I have various offices and I stay there till night. Having got to my office, I first greet my team members and exchange regards with them. I do not think a person should be ready to do anything for career promotion. I never swerve from my principles and values. The field where I would never work – I have never thought of this. I think I would never work where I would have to work under the superior’s supervision o and where I would have to fulfill other’s instructions. I do not have any special favorite brand. I wear everything in what I feel comfortable. I adore old model vehicles. I like many old modern such as Bugatti, Jaguar, I would not specify any modern brand.
Three books that I would suggest young people to read? – I would name rather authors: Guram Dochanashvili, Otar Chiladze and Nodar Dumbadze. There are many other authors too. Do I like communicating with journalists? – I would not specify any profession. I like communicating with talented individuals in all professions. The main thing in the life is to find yourself, to have internal balance and follow the goal tirelessly. I love travelling, especially to nontourist places. My favorite sport is handball. I was handball player and the captain of the national team. I am a fan of the national rugby team of Georgia. Rugby is Our Game! My favorite drink is good Georgian wine, I also like good brandy. I would not specify any specific favorite dish. I am not a pretentious person in this respect. Sometimes, I even try cooking.
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Tvishi Tsolikouri – the Wine from the Cellar of an Old Peasant
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Construction Building Raw Materials Production Plant to Open in Khelvachauri
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Customs Duties on Hybrid Cars Reduced by 50%
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Silk Road Group to Invest Additional 100 million USD in Georgia’s Real Estate
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HeidelbergCement Going to Maintain the Market Leadership
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72% of Vineyards in Georgia Grow in Kakheti Region
BUSINESS
May 9, 2016 #144
Marilisi - Georgian Soul in Jewelry MARIAM GOGIBEDASHVILI
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ll jewelry houses have similar histories of inception. When masters strive for establishing their own styles and tastes, they create a collection based on their own ideas. If the society shows interest towards this style and works, then this undertaking grows systematically. The demand and recognition grows. All in its proper time. Genuine affairs cannot be made in rush. We just should not avoid difficulties. You should remember that not everybody will approve your affairs, but you should not surrender your visions and principles if you believe in your idea. We have the same case with Marilisi founded by jeweler Natia Gotsiridze. She determines the company art direction. Natia says that our golden art heritage is not just a subject of pride and glory, but it imposes huge responsibility on the contemporary artists. When our ancestors have created the Bedia Ampulla and Khakhuli Triptych, you must not touch this trade without high-level professionalism. Not only the history, but also principles and schedule of creating jewelry houses are the same. Anybody who has even once visited the world’s distinguished jewelry workshops will agree with me. Be it Cartier, Bulgari or Marilisi, the essential principle remains the same: special style of art, high professionalism and discipline in all chains. Similar companies ensure uncompromisingly high-quality and refined management. Experience of each company is priceless in this issue. We exist for 8 years, but we do the business that will work for our society and country after 20 and 40 years too. There is no unfeasible task and project for us. We create masterpieces and we are proud that we have laid a foundation of a jewelry house tradition in Georgia. This is an entirely different service compared to an ordinary jewelry store. Regretfully, in the Soviet period, the high-level jewelry art was frozen on the level of jewelry plants and the ruling ideology was dominating on decorations too. Our society perceives the concept of a jewelry house a little strangely, but it gets accustomed to it stage by stage and appreciates it. We believe in our art and therefore, we stubbornly strive ahead. This is very important. The company logo was created in Merilisi. It emphasizes strength. Two lions create Latin M jointly. The decoration made by a master inspires everybody. It is wonderful to wear a decoration of the material created by the nature for many millennia. And a master transforms it into a beautiful work after hundreds of hours of tireless job. - When did you open your stores in Georgia? - Two months ago, when a premium-class jewelry boutique of Marilisi jewelry house was unveiled on I. Abashidze Street N43. Marilisi has also developed a network of branded showcases for hotel shopping at Georgian and foreign brand hotels. In foreign countries, the culture of hotel shopping was established long ago, while in Georgia we are the first who has implemented a similar project. Today this network includes the most famous and prestigious hotels and tourism locations in eastern and western Georgia. River Side Hotel is our partner hotel in Tbilisi, while the company design shop operates at the Borjomi Rixos, an international network of hotels. Marilisi’s beautiful design shop was
unveiled in Borjomi in July. We offer high-quality silver decorations to the hotel visitors designed in ethnic and modern styles. All of them represent intellectual property of Marilisi. Our jewelry works are made in Tbilisi, at Marilisi laboratory-workshop. High-quality precious metals are used for their creation, as well as precious and semiprecious natural gems. We care for the quality of production process. It is of crucial importance to manage technologies properly. Marilisi produces decorations for tasteful clients. Exclusive works made at our workshop, to be precise, masterpieces, are interesting for collectors. High-quality and professionally manufactured jewelry works cannot be cheap products. Therefore, medium and high-income segments are main users of our products. At the same time, we offer very democratic prices in the segment of gift silver products that is desirable and interesting segment for both Georgian consumers and tourists and foreign society. - Amid huge competition how Marilisi is trying to strengthen the brand’s positions on the market? - I would not say there are many domestic jewelry production brands in Georgia. Nor competition is sharp. On the market you will mainly meet imported jewelry works, both cheap and expensive samples. We consider ourselves to be the market leader – thanks to high quality and standards that we offer to our clients. Marilisi perception grows in our society and naturally, this is reflected on the commercial side of the company. - You make special and extravagant products. Does your brand follow the world fashion trends? - The extravagant style that is characteristic to Marilisi frequently does not always match jewelry standards. Disproportional forms received in the process of cutting a gem make special impression. Marilisi takes into account the world fashion tendencies basically at the level of structures. - What age category is interested in your works? - You will see rings, necklaces and bracelets that are interesting for both teenagers and adults. We have special functional works for children that can be gifted for birthdays or christening with much pleasure. However, mainly, young people over 18-age category buy our decorations. - How many professionals work on making your jewelry works? - A great number of professionals work on creating collections. A major creative group of professionals – artists, designers, painters, masters, managers, specialist-consultants. This is a joint chain and one big interconnected team. Our company employs interesting persons. The idea is created after long thought and much energy is required for its implementation. It is huge responsibility to create a new model and all chains of the company equally share this responsibility. Our decoration has its own clients. They precisely know what they want. When they enter the Marilisi world, they do not cease their relations with the jewelry house for many years. We serve tasteful, determined and ambitious clients – the features that is embodied in Marilisi.
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BUSINESS
May 9, 2016 #144
Russian Ice Cream Appears on the Georgian Market The company Davaice for the production of ice cream, located in Kstovo, Nizhny Novgorod region, will start to export its products to Georgia in May 2016. It is reported by the press service of the Regional Office of Rosselkhoznadzor. The company also plans to start exporting ice cream to Mongolia and China. Recently, inspection was carried out at the factory, during which the Commission examined the room, d the delivery scheme of raw materials, packaging process, labeling and storage of finished products.
TOURISM
AWARD
Zaza Pachulia Develop New Hotel Network of ZP in Georgia Distinguished Georgian basketball player Zaza Pachulia plans to intensify efforts in the Georgian tourism sector. Several months ago, Zaza Pachulia introduced Snap Fitness, the famous fitness brand, to Georgia. The brand unveiled the first center at Axis Shopping. In the near period, a new branch will open on Chavchavadze Avenue. Zaza Paculia has also unveiled a modern-standard basketball academy and plans to expand the network to regions of Georgia too. Moreover, according to the recently information, the famous athlete intends to develop his own network of hotels. Two hotels with the initials of ZP (Zaza Pachulia) have al-
ready launched operation in Tbilisi. The ZP hotels sales manager Dimitri Meltsessov told the Commersant that one of them has been operating at Mardjanishvili Street 44 for three years. This is a four-star topclass hotel with 32 suites, spa and wellness centers, conference halls for 100 persons and restaurant-veranda on the last floor. The hotel also owns a parking place for 35-40 motorcars. The hotel is overloaded on season, while tourist inflows slightly decrease in the November to February period, Meltsessov said. 40% of tourists come from Europe, 35% from the CIS countries; the remaining part comes from
NEWS
TECHNOLOGY
Georgian Meat exports to Iran and Iraq Meat production company Ibermeat is going to export its products to Iran and Iraq. According to the company’s technical director, Ibermeat will start exporting beef and sheep meat to these countries by the end of May but first export license must be obtained before the export takes place. In Irakli Adeishvili’s words, at the first stage the company will work in export markets and from September Iberula meat markets may start operating in the local market.
“HSK” Plans to Enter Georgia One of the leading Kazakhstan insurance company “HSK” plans to enter Georgia and to establish its own company. The company’s board chairman, Tlek Alzhanov stated to Kazakh media about this decision. On the question of how to develop business management, Alzhanov said: “We do diversification. We would like to establish our companies in Georgia and Mongolia. We have already built our company in Kyrgyzstan, where our company keeps lead position”.
United Arab Emirates. We always try to make attractive offers to our clients. Compared to the branded hotels, we offer lower prices and much higher-quality services, Meltsessov added. “Our hotel has been coated by high-quality marble. We also find a self-playing grand piano at our hotel. In reality, we represent the category of a boutique-hotel, but we make positioning in the category of a business hotel. We provide top-level services”, Meltsessov noted and added that prices start from 100-115 USD and change due to seasons. Thanks to modern technologies, the hotel manages to keep lower prices and provide a wide range of preferences.
Georgian Student’s Invention Makes Final of Top US Program Nikoloz Gachechiladze Student
Georgia’s Nikoloz Gachchiladze’s has reached the final of US State Department’s Global Innovation Through Science and Technology competition. A Georgian student’s innovative idea that encourages online learning in rural areas has been selected from about a thousand projects from budding entrepreneurs worldwide to move on to the final stage of a United States State Department technology program. Nikoloz Gachechiladze’s MotionX project was chosen alongside 101 other ideas and start-ups from applicants in 51 countries for the semi-final stage of the Global Innovation through Science and Technology (GIST) initiative. His design, MotionX, allows students to distribute material online, from one educational institution to another, and expand access to information. Gachechiladze’s project envisaged technology to provide high-quality video recording capabilities that would enable schools and universities in remote regions to receive latest educational content via the internet, as well as adapt the content “based on local needs”. Participants from 104 countries are attending the competition. The next stage of the competition is the final. The final will be held on June 23 in California’s Silicon Valley. Participants will present their ideas at Global Entrepreneurship summit and compete for financing for their start-ups.
The ZP sales manager says that Zaza Pachulia’s image make positive affect on the network success, besides high-quality and affordable services. As to another ZP hotel located on Betlemi Street, this is a comparatively smaller hotel with 12 suites. The hotel has been recently renovated and it will resume operation in several days. At this stage, I do not have information on a new hotel project, but it is not ruled out that a new network of hotels be developed across Georgia, ZP hotels sales manager Dimitri Meltsessov said. Despite he has not specified investments, he confirmed that the investments are very impressive.
Clean World Obtains Title of “Golden Brand” Company This success is the merit of those 1500 employees that ensure cleanness in various organizations. These people are real owners of this Award! Owners of the Golden Brand title were named for the 11th times this year. The award was established by the Global Idea and the Financial newspaper. In 2016 Clean World was named among 42 best companies. „This is an additional motivator to maintain the quality, add new directions to our services and be leaders in the professional cleaning industry. This award stimulates us to grow further. This success is the merit of 1500 employees that ensure cleanness in various organizations. I would say this award belongs to these people. We are glad and proud that an additional very important award has been added to the the list of Clean World’s awards. We justify our name and offer our services based on individual approaches and high standards. The secret of our success derives from our 10-year experience, professionalism and introduction of innovations”, Khatia Alpaidze, head of the PR and Marketing department of Clean World company, noted.
HEALTHCARE
May 9, 2016 #144
The main objective of the clinic pharmacology and rational pharmacotherapy” training program is to employ medications rationally and safely
Union of Medical Associations Introduces Training Program for Doctors
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he Union of Georgian Medical Associations (UGMA) has introduced of a new training program for doctors at the Jandacva.ge press-club. In the second half of May the Union will launch a training program in Clinic Pharmacology and Rational Pharmacotherapy. At the briefing, the parties discussed the training program’s key aspects in clinical pharmacology that are necessary for doctors of all specialization.
The union has recently completed research on polipragmasy cases and developed special recommendations, including ones for implementing the mentioned program. This program is especially important for primary healthcare chain doctors. “The main objective of the clinic pharmacology and rational pharmacotherapy” training program is to employ medications rationally and safely, develop directions for safe, efficient and rational treatment oriented on patients. The program implementa-
April Sees 11% m/m Decline in Value of Children Medicine Chest
David Sergeenko: Major Orphanages should Be Replaced by Family Environments The Healthcare Ministry training center has hosted a presentation of the campaign of All Children in Families. Georgian Health Minister David Sergeenko, Bernard Kouchner, the founder of Global Alliance consulting company, the company director Jean-Elie Malkin and representatives of the NGO sector have attended the event. The objective of the campaign is to upgrade the public awareness of children at state orphanages. It is important to accommodate them to more family-adapted environment, Healthcare Minister David Sergeenko told reporters before the meeting.
tion is of crucial importance for the first chain doctors. The association executive secretary Archil Morchiladze said the program implementation is important for strengthening the primary healthcare chain. In case of introduction of a system for compensating medications by the state, continuous implementation of similar programs will foster optimization of medicine expenditures. The program will start in the second half of May and it will be implemented in Tbilisi and all regions of Georgia. The training program will be led by Luiza Gabunia, associate professor of the medical pharmacology department and director of scientific skills department of Tbilisi State Medical University, and Rusudan Jashi, head of the Kobaladze Pharmacology and Rational Pharmacotherapy Promotion Union.
www.cbw.ge << <<
The Underground World of Georgian Wine
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Georgian Tourism and Hospitality Forum Within Welcome to Georgia! National Tourism Awards 2016
Which Countries Must Get Visa Liberalization for Entering Schengen Area?
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“The global children care strategy has outlined that major orphanages should be replaced by the family environment. Today, the future strategy will be introduced and this is a very important advancement, when a child will grow at families or family-adapted environment”, Health Minister David Sergeenko said. Bernard Kouchner also addressed guests and noted that the All Children in Families is an additional cherished campaign: “This is a new wonderful initiative proposed by my dear colleague Minister Sergeenko. I remember the time when we established the Doctors without Borders and the Doctors of the World. In that period, we made focus on problems before unparented children and we have provided much job to ensure maximally family-adapted environment for these children. We have been cooperating with the Health Ministry for 8 months. We deeply appreciate our cooperation with the Minster, who is a very good doctor. It is not accidental that he has been a Health Minster for such a long period”, Kouchner noted. Several nongovernmental organizations have engaged in implementing the All Children in Families campaign. Later, by support of UNICEF and the Coalition for Children and Youth Welfare, various events will be held for maximal outlining and popularizing this issue and direction.
The Healthcare Platform has published the April report on the list and prices of medicines as part of the Panaskeretli Pharma monitoring project. The report proves that in April the children medicine chest value decreased by 2% compared to March. Namely, in March the children medicine chest value was 114 GEL, while the figure made up 101.47 GEL in April. For example, the price of rehydron was 26 GEL in March, while in April the medicine price decreased to 25.95 GEL, while the Albutsid eye drops price has decreased to 1.20 GEL from 2 GEL. The Healthcare Platform has examined medicine prices at four leading pharmacy networks. The list and price of medications for the children medicine chest is as follows: Children Medicine Chest (3-5 Years) Care Products: Ear cotton swabs (1000 sticks) – 2.65 GEL Baby Cream – 7.95 GEL Cotton – 1.00 GEL Sterilized Bandage – 1.04 GEL Brilliant Green – 0.30 GEL Hydrogen dioxide – 0.51 GEL (100m)
Spirits – 1.40 GEL Against Burn: Turmanidze Ointment 4.90 GEL Sore Throat: Strepsils – 8.50 GEL Against Cold: Panadol – 8.20 GEL Viburcol (cabldes) – 13.37 GEL Intestine: Rehydron Optim – 25.95 GEL Enterol – 8.50 GEL Earache: Otipax – 7.20 GEL Ophthalmalgia: Albucide – 1.20 GEL Antihistamine: Cetirizin – 3.50 GEL For Travel: Dramina – 5.60 GEL
Total: 101.87 GEL The Healthcare Platform continues exploring prices of medications at various pharmacy networks for various segments of consumers. The organization has already published the children medicine chest list and prices for the month of April. The organization also plans to explore medicine chests for other categories too, including family, drivers, urgent medical assistance and so on.
Kid Medicine Chest Value Drops 16%
The Healthcare Platform has published the April report on the list and prices of medicines as part of the Panaskeretli Pharma monitoring project. According to the report, the baby medicine chest value in April decreased by 16% month on month. In March, the baby medicine chest value was 191 GEL, while the figure decreased to 160.18 GEL in April. For example: in March the price of Panadol was 8.70 GEL and the price decreased to 8.20 GEL in April. The price of baby milk bottle with a pacifier has also declined by 4.25 GEL. At the same time, prices have increased on several care products. For example: the price of baby powder was 2.17 GEL in March, while the price increased to 4.70 GEL in April. The baby cream price has also increased to 7.95 GEL from 7.80 GEL. The organization has examined the price of medication at four leading pharmacy networks. Detailed list and price of the baby medicine chest is as follows: Baby Medicine Chest (1-3 years old) Accessories: Bath thermometer: - 6.85 GEL Pacifier – 5.00 GEL Bottle with Pacifier – 8.00 GEL Enema – 1.53 GEL Thermometer – 10.00 GEL
Scissors- 4.76 GEL Care Products: Ear Cotton Swabs – 2.12 GEL Powder-4.70 GEL Baby Cream – 7.95 GEL Pampers Cream – 4.64 GEL Cotton – 1.00 GEL Sterilized Bandage – 1.04 GEL Brilliant Green – 0.30 GEL Hydrogen Dioxide – 1.25 GEL Spirits – 1.40 GEL Medications: Panadol – 8.20 GEL Fenistil – 13.31 GEL Camomile – 1.48 GEL Viburcol Candles – 13.37 GEL Bobotik – 11.40 GEL Neopeke (Syrup) – 34.90 GEL Fennel Tea – 7.83 GEL Intraoral Multifunctional Gel – 8.35 GEL
Total: 160.18 GEL The Healthcare Platform continues exploring prices of medications at various pharmacy networks for various segments of consumers. The organization has already published the children medicine chest list and prices for the month of April. The organization also plans to explore medicine chests for other categories too, including family, drivers, urgent medical assistance and so on.
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PUBLICITY
GEORGIAN RAILWAY URGES YOU TO CROSS THE RAILWAY TRACK IN ONLY SPECIALLY ALLOTED ZONES AND TAKE CARE OF YOUR LIFE! Crossing the railway track in the unpermitted places violates article 106 of the Georgian Code of Administrative Offences and this lawbreaking results in due sanctions.
May 9, 2016 #144
WORLD NEWS
May 9, 2016 #144
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Quotes
“ The construction of the Khankendi is making excellent progress with the hull strips and bow block already integrated.
The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking
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Electronic payments are a major contributor to consumption, increased production, economic growth and employment creation
Albert Einstein
Shah Deniz 2 project scores contract worth $1.5B
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he Shah Deniz consortium today announced the award of a $1.5 billion contract for the transport and installation of the deeper water subsea production systems for Shah Deniz Stage 2 to the BOS Shelf LLC, Saipem Contracting Netherlands B.V. and Star Gulf FZCO consortium. The scope of work of the contract is for the management and operation of the new-build Subsea Construction Vessel (SCV) Khankendi for the transport and installation of the deeper water subsea production systems and subsea structures at all five flanks of the project. Frank Wilson, BP’s Vice President for the Shah Deniz Stage 2 Marine and Subsea programme commented: “We are pleased to continue cooperation with our strategic offshore installation contractor and its major local consortium partners to progress the execute phase of the giant Shah Deniz Stage 2 project. The new flagship vessel Khankendi, which is currently under construction by Baku Shipyard, will provide essential support for the installation of the Stage 2 subsea structures - the biggest subsea production system ever built in the Caspian. The con-
struction of the Khankendi is making excellent progress with the hull strips and bow block already integrated. This major contract award for the installation of subsea production systems underpins our commitment to deploy new advanced subsea production technology for the first time to the Caspian as part of the Shah Deniz Stage 2 development”. The contract scope is planned to be completed by the middle of 2022, with a five-year option to extend the contract to cover the installation of remaining trees, flying leads and jumpers at the East-South, EastNorth and West-South subsea flanks between 2022 and 2027. The scope also includes the reactivation of the Pipe-lay Barge Israfil Huseinov and the second pipe-lay installation campaign of the deeper water flowlines in 2019. Work on Shah Deniz Stage 2 and South Caucasus Pipeline expansion (SCPX) projects continue to move forward with more than 70% of all first gas work across Azerbaijan and Georgia already complete in terms of engineering, procurement and construction. The project remains on schedule for the first gas in 2018.
Russian Ruble Gains With Oil as Data Show Global Glut Abating
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ussia’s ruble strengthened the most in a week as data showed a worldwide glut in crude may be abating, spurring appetite for assets in the world’s biggest energy exporter. The currency appreciated 1.5 percent to 65.522 against the dollar by 5:05 p.m. in Moscow after slumping 2.8 percent on Wednesday. Brent crude advanced 3.7 percent to $46.26 per barrel after data showed U.S. production fell the most in eight months, helping recoup losses in the first three days of this week. The ruble has gone from being the worst-performing currency in emerging markets at the start of 2016 to the biggest gainer alongside Brazil’s real as oil, the country’s big-
gest export earner, rebounded. Further gains may be tempered if U.S. jobs data on Friday is strong enough to prompt the Federal Reserve to raise borrowing costs in June, Rabobank said, an outcome which two senior U.S. policy makers hinted at this week. he currency and oil continue “to move in tandem,” said Piotr Matys, a strategist for emerging-market currencies at Rabobank in London, who forecasts the ruble will weaken to 68 against the dollar by the end of May. The 60-day correlation between crude and the currency was at 0.8 on Thursday, compared with a record 0.85 in April. A value of 1 would mean the assets are moving in lockstep.
Bitcoin founder reveals himself Australian computer scientist & businessman Craig Wright has revealed himself as being Satoshi Nakamoto, the inventor of Bitcoin. Bitcoin is a form of digital currency that is created and held electronically. Bitcoin was released in 2009, and its creator has used the pseudonym of Satoshi Nakamoto since its inception. In order to validate his claim, Wright presented evidence to three different leading media organizations: the BBC, the Economist, and GQ. The Australian signed an encrypted message using the cryptographic key associated with the first ever Bitcoin transaction. “These are the blocks used to send 10 Bitcoins to Hal Finney in January [2009] as the first Bitcoin transaction,” he said during his demonstration.
Turkey gives nod to Bank of China to set up business Officials from the regulatory BDDK met on Monday and discussed the issue, the official said, adding that the bank is expected to start oprtations within nine months and its headquarters will be in Istanbul. Listed in Shanghai and Hong Kong, Bank of China is one of China’s “big five” banks and the world’s fifthlargest lender by assets, according to Thomson Reuters data. Rival Industrial and Commercial Bank of China, the world’s top lender by assets, already has a presence in Turkey. While foreign investor sentiment on Turkey has soured somewhat after a spate of bomb attacks this year and renewed fighting between the state and Kurdish militants, the underlying economy remains relatively robust, thanks in part to a young and rapidly growing population. Turkey’s economy is expected to grow by 3.5 percent this year, according to the World Bank
Visa Study Estimates Migration to Electronic Payments Added Nearly $300B to GDP Across 70 Countries
V
isa Inc. today released the results of a new 2016 study conducted by Moody’s Analytics that analyzed the impact of electronic payments on economic growth across 70 countries between 2011 and 2015. The Visa-commissioned study found that increased use of electronic payment products, including credit, debit and prepaid cards, added US$296B to GDP, while raising household consumption of goods and services by an average of 0.18 percent per year. In addition, Moody’s economists estimate that the equivalent to 2.6 million new jobs were created on average, annually, over the five-year period as a result of increased use of electronic payments. The 70 countries in the study make up almost 95 percent of global GDP. “Electronic payments are a major contributor to consumption, increased production, economic growth and employment creation,” noted Mark Zandi, Chief Economist, Moody’s Analytics. “Those countries which saw large increases in card usage also saw larger contributions to overall growth in their economies.” Findings from the study were shared in the report, “The Impact of Electronic Payments on Economic Growth,” which also indicated that the electronification of payments benefited governments and contributed to a more stable and open business environment. Additionally electronic payments helped to minimize what is commonly referred to as the grey economy -- economic activity that is often cash-based and goes unreported. As a result, electronic payments provided a higher
potential tax revenue base for governments, while also bringing the added benefits of lower cash handling costs, guaranteed payment to merchants and greater financial inclusion for consumers. ”These findings reinforce the many positive benefits that electronic payments bring to local economies all over the world,” said Charlie W. Scharf, Chief Executive Officer, Visa Inc. “This research also suggests that the right public policies can create an open, competitive payment environment, and contribute to economic growth and job creation. At Visa we are partnering globally with governments, financial institutions, merchants and technology companies to develop innovative payment products and services that will accelerate electronic acceptance, grow commerce, and bring the benefits of card payments to more people everywhere.” «Consumer are using cards for payments more and more. In 20112015 we’ve seen a stable growth of Visa cards usage across Visa CISSEE markets. As Moody’s results suggest migration to electronic payments added nearly US$460 million to GDP in Ukraine, US$70 million in Azerbaijan and US$210 million in Kazakhstan, said Dmytro Krepak, Visa country manager for Ukraine, Georgia and Armenia. – This is the result of close partnership between all industry stakeholders, including Visa client-banks, regulators, merchants and other players. We’re committed to work further with all interested parties to reach our common goal – accelerated migration to electronic payments for the benefit of the national economies».
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On May 13-15 EXPO Batumi 2016, the 9th international exhibition of tourism and hotel equipment, will open in Batumi, the Ajara Region. The exhibition is organized by GEONET EXPO, one of the first international exhibition companies in Georgia. The eventâ&#x20AC;&#x2122;s attractiveness and eďŹ&#x192;ciency
PUBLICITY
grows year to year. Both domestic and foreign companies from hotel network, hotel equipment, decorations, restaurants and tourism sectors are taking part in EXPO Batumi 2016. The following countries are represented at the exhibition: Turkey, Iran, Azerbaijan, Russia, Ukraine, Arme-
nia, Israel, Poland, Belarus, Kazakhstan and China. During the exhibition advertising, information tours, presentations will be held for the participants and meetings will be organized with reporters. The support of EXPO Batumi 2016 event is provided by the Ajara Governments,
May 9, 2016 #144
Batumi City Hall, the national tourism administration of Georgia, the Ajara tourism and resorts department, the tourism products development agency of Ajara, associations of guides, the trade and commerce chamber of Ajara and the association of international investors of Georgia.
May 9, 2016 #144
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
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TBILISI GUIDE 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
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PUBLICITY
May 9, 2016 #144