Caucasus Business Week #145

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May 16, 2016 #145

May 16, 2016, Issue 145 - www.cbw.ge

Real Estate

regulations

business

Learn More About Real Estate Market

Business Against Online Loans

Ice Cream Market Heats Up

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Pg. 6

Pg. 8

Yield on USD Denominated Deposits Shrinks

Real Estate Market

Misbalance between Dreams and Solvency

Interest rates on foreign currency denominated deposits fall, while the yield on GEL denominated deposits rise. Depositors who have conversed GEL denominated deposits into USD are facing new problems. They have to endure the decreased interest rates or carry out conversion into GEL, however, they will lose more finances in the process of constant conversion of deposits. As to loans, specialists do not expect interest rates to increase on USD-denominated loans because the reserve coefficient has increased.

At almost all commercial banks, averaged interest rate on GEL denominated deposits makes up 11% and 3% on USD-denominated deposits. Commercial banks show less attention to EUR and the yield on EUR-denominated deposits makes up only 1.5%.

According to the official report of the national bank of Georgia (NBG), as of April 1, as compared to the same period of 2015, interest rate on foreign currency denominated deposits decreased to 3.6% from 5.2%. Almost all commercial banks have lowered interest rates on USD denominated term deposits to 3.5%, while on GELdenominated deposits the interest rate exceeds 11%.

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EBRD Supports Development of New Hospital in Tbilisi The EBRD is financing the development of a new hospital in Tbilisi with a US$10 million loan to JSC Medical Corporation Evex (Evex) to establish a state-of-the-art facility in the Georgian capital. Evex has been operating since 2009 and is fully owned by Georgia Healthcare Group (GHG) PLC. Established in 2015, GHG has become one of the leading private health care institutions in Georgia, successfully completing an initial public offering on the London Stock Exchange premium listing in November 2015.

The EBRD financing will allow Evex to renovate and refurbish the Deka hospital in Tbilisi by mid-2017. The new facilities will provide patients with faster, more modern emergency services and state-of-the-art equipment for general, interventional and cardiovascular surgery. Deka Hospital will be able to offer additional services such as oncology and radiology, for which demand currently exceeds supply, and become a full-scale multi-profile hospital with a total of 310 beds.

Photo/Giorgi Shermazanashvili

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2 GOVERNMENT

NEWSROOM 34 Million Dollars Allocated for Tbilisi Bus Renovation Under which “Tbilisi Bus Project” EBRD will give the country 27 million euros for financial assistance, and the Eastern Europe Energy Efficiency and Environmental Partnership Fund will grant of 7 million euros.

Georgian Government Considering Two Ways of Subsidizing Within Vintage 2016 Program According to Director of the National Wine Agency, work in the Ministry of Agricultureis underway for over a month. The government should make the final decision.

ECONOMY

External Merchandise Trade Grew by 8 Percent The value of export decreased by 12 percent reaching USD 608 million, while the import grew by 14 percent and amounted to USD 2679 million with respect to January-April of the previous year.

EBRD Upgrades Georgia’s Economic Growth Forecast to 3.4% The EBRD forecast is based on expectations from coming tourism season and strengthened investors confidence in the country after improved relations between the NBG and the government of Georgia.

BANKING

National Bank Expects Inflation Rate to Be under Target Indicator The annual inflation rate in the first quarter of 2016 was lower than the target rate. Weak joint demand drive declination tendency, as well as reduced prices on food and oil products on international markets.

National Bank to Regulate Online Credit Organizations Consequently, our task is to regulate all these issues so as our citizens receive the due services and at the same time, abstain from taking inappropriate risks”, the Georgian Economy Minister noted.

BUSINESS

Turkish Cargo Might be Transported via Georgian Corridor Turkish companies have to rearrange transport routes at the background of tension relations with Russia. A number of private Turkish companies show interest in cargo transportation via Georgia-Azerbaijan route.

Partnership Fund Expanded Greenhouses Production Space in Samtredia The total investment volume makes up 4.2 million EUR. Where 1.4 million euros comes from the Partnership Fund’s contribution.

COMPANY

Flydubai Increases the Frequency of Flights to Georgia Flydubai doubles the frequency of flights to Georgia.

The increased frequency of flights will launch July 8, 2016 and it will perform 14 flights instead of 7 per week.

British Petroleum invests $2bn in Georgia

G

eorgia has enjoyed two decades of fruitful cooperation with one of the world’s largest oil and gas companies British Petroleum (BP).

At a business breakfast in London this morning, Georgia’s Prime Minister Giorgi Kvirikashvili evaluated 20 years of successful cooperation with BP with the company’s executive director Bob Dudley.

The work BP has undertaken in Georgia as well as its current and future plans were mentioned and applauded by Kvirikashvili, while Dudley stressed Georgia was an important partner of BP. The importance of the South Caucasus Pipeline Expansion (SCPX) project was mentioned, and when complete, the pipeline will extend Georgia’s role in transporting oil and gas to Europe.

BP and its partners were now working on the SCPX project, which represented the single largest foreign investment in Georgia at $2 billion USD over the next four years.

The Southern Gas Corridor (SGC) consists of a chain of pipelines which will transport gas from the Shah Deniz gas field in Azerbaijan to Europe via Georgia and Turkey. The

pipeline starts from the Sangachal terminal near Baku. It follows the route of the Baku-Tbilisi-Ceyhan (BTC) crude oil pipeline through Azerbaijan and Georgia to Turkey, where it is linked to the Turkish gas distribution system.

The SCP expansion works has now entered the final phase to increase the gas capacity of the pipeline to 16 billion cubic metres (m3) per year from Shah Deniz 2 mine to Europe.

With this extra gas running through Georgia, the country will receive an increased supply of natural gas “at preferential prices” from the end of 2018 or beginning of 2019, announced the Government of Georgia.

In London this morning, Dudley said BP’s partnership with Georgia was invaluable [Kvirikashvili and I] had a very fruitful meeting where we discussed the 20 years of successful partnership between BP and Georgia. We are investing billions of dollars in the pipeline and we discussed our history and future cooperation. We can share our experience with anyone who intends to invest in Georgia and we are very enthusiastic in this regard,” said Dudley after meeting Kvirikashvili.

Meanwhile, other BP officials said the SGC project was running on time and on budget.

The pipeline has been operational since late 2006 transporting gas to Azerbaijan and Georgia, and from July 2007 to Turkey from the Shah Deniz Stage 1.

The pipeline has a diameter of 106cm and a total length of 691km, with 443km in Azerbaijan and 248km in Georgia.

Last year operating expenditures were about $47.5 million USD while the SCP cost about $1.1 billion USD in capital expenditure, said BP. In 2015, SCP’s daily average throughput was 18.6 million m3 of gas per day, said BP. The expansion of the SCP was part of the Shah Deniz Full Field Development project. This expansion involved laying new pipeline across Azerbaijan and the construction of two new compressor stations in Georgia to significantly increase the gas volumes exported through the pipeline.

At the border between Georgia and Turkey, the pipeline will link into other new pipelines to transport gas into Turkey and the European Union (EU).

PM: “Georgia has taken groundbreaking steps against corruption”

G

eorgia’s Prime Minister Giorgi Kvirikashvili says steps undertaken by Georgia to eliminate corruption may be considered less than revolutionary but the outcomes are “truly groundbreaking”.

Kvirikashvili spoke about his country’s efforts during his speech at the Anti-Corruption Summit: London 2016 yesterday. The event brought together world leaders, business and civil society to find solutions to corrupt practices and combat the culture of corruption in all facets of political activity.

We have developed a one-stopshop nationwide network of Public Service Halls in up to 20 cities and community centres in more than 30 large villages across the country that provides all types of public services to our citizens,” Kvirikashvili said.

Today … we are expanding this model to meet all possible needs of the legal persons,” he added, noting this would ensure all types of services people may require from the Governmental agency were available in one building.

This limits the corruption-related risks that are already low in Georgia,” Georgia’s PM told the summit.

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The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 12 Director: Levan Beglarishvili WWW.CBW.GE

May 16, 2016 #145

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Speaking about the major anti-corruption reforms in Georgia, Kvirikashvili said the introduction of a comprehensive online state procurement system, development of an E-Treasury and E-Budget programs and passing laws helped pave the way for efficient prosecution of corruption-related crimes.

I have to note that we have our political party funding law, which is crucial prior to the Parliamentary Elections that are scheduled this autumn,” Kvirikashvili said.

Speaking about practical partnerships, Kvirikashvili emphasised the UK government’s efforts within the Good Governance Fund to establish strategic cooperation between the Office of Budget Responsibility of the UK and the Parliamentary Budget Office of Georgia.

Georgia’s Prime Minister also noted the continual monitoring of the Asset Declaration System for Public Officials as one of the important novelties in Georgia.

This groundbreaking amendment will substantially affect our anticorruption efforts. Employees of the Civil Service Bureau (CSB) became authorised to undertake the permanent verification of asset declarations.”

If as a result of the checkup the CSB finds that an asset declaration consists of any incomplete or inaccurate information or document, or legal provisions have been violated on any other account, there will be an administrative or criminal followup as the case may be,” the PM said.

The PM also voiced Georgia’s international recognitions against corruption in his speech.

Specifically, he mentioned: According to the Open Government Index 2015 published by the World Justice Project, Georgia ranked 1st out of 13 East European and Central Asian countries in the Open Governance category; Georgia ranked 11th out of 197 countries according to the Business Bribery Risk Index 2014 published

by Trace International; and According to the Transparency International’s Global Corruption Barometer Survey, only 4 percent of people polled in Georgia said they had paid bribes.

These are truly remarkable outcomes. Of course, no countries can achieve tangible results separately.

These results may be attained only through consolidation of our international efforts,” the PM said.

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 16, 2016 #145

PUBLICITY

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4 Production of Heineken, Amstel and Krushovitses Beers to Start in Georgia Teliani Valley launches construction of beer plant. Construction of the plant might start in May. The project will be carried by subsidiary company Global Beer Georgia.

As of preliminary estimations, total cost of the project amounts to 37 million USD (VAT excluded). Over 13 million USD will be funded by emission of new shares, while the remained sum will be attracted from international financial institutions or local banks. Heineken, Amstel and Krushovitses beers will be produced in the plant. Agreements are already signed with Heineken, Amstel and Krushovitses.

Global Beer Georgia will be an exclusive producer of these beers in Georgia. The company will make realization of the mentioned brands in Azerbaijan and Armenia. However, the company plans to produce local beer and lemonade alongside international brands.

REAL ESTATE

May 16, 2016 #145

Learn More About Real Estate Market

More than 20 Local Companies Joined “Check in Georgia” Project More than 20 private companies have joined the “Check in Georgia” project which sponsorship contribution amounts to GEL 6 million.

It was announced at the event held in Folk State Centre. According to organizers of the project, revenues from ticket sale from three concerts exceeded GEL 2 million. The events are planned to be held in 19 cities within the frame of the project, where sponsors can offer their marketing initiatives to the population and guests. Recall that the Check in Georgia budget reaches GEL 29 million. It should be noted that the opposition blames the government for oppressing the local business, as if they were engaged in the project by force.

In Kareli 2 Mln Investment was Funded in Dried Fruit Processing Plant “Kareli agro-industrial company ” (KAI) funded 2 million investment in the dried fruit processing factory.

The company started its operations in last year, and the production realization began in January2016.

Enterprise uses raw materials grown in Kareli, Gori and Baghdadi regions.

The company also has 30 hectares of a variety of fruit trees’ gardens.

As it was stated by the company representatives, by this time the products are available at almost every market around Tbilisi. The enterprise is established within co-founded state programs, namely 10% was Private capital investment, while 90 percent was the co-financing. Kareli fruit plant plans to implement HACCP– standards in the production process standards, after which the company’s products will be exported.

The main objective by now for the company is to expand its production in order to acquire more and more reliability.

The Georgia Real Estate Index (GREI) being created by Real Estate Market Laboratory (REM lab) will soon be available to the public. REM lab is a joint project of TBC Bank and ISET (International School of Economy) and it is being implemented with the support of JumpStart Georgia. The goal of the project is to study the real estate market on a regular basis and calculate the real estate market index, in addition to other indicators.

The project is based on an agreement that ISET, with help from TBC Bank, will ensure collection, processing and analysis of the data necessary to study the real estate market.

VLADIMER MAGHNADZE, the head of TBC Bank’s collateral management and evaluation department, provides more details about the project.

- Why did TBC Bank become interested in studying real estate market?

- Real estate index and other indicators that reflect the trends of the real estate market are not regularly calculated in the country. The banks do not possess detailed statistics about this segment and order research on different segments of real estate markets from various companies from time to time. Without a doubt, it is necessary to feel the pulse of the market in order to make fast and efficient business decisions.

However, this should be done regularly, instead of an occasional study.

REM lab serves this purpose. It plans on researching real estate market indicators (real estate index and etc.) and publishing regular reports.

- What is a Real estate index and what information does it provide?

- In general, a real estate index measures how prices change in real estate and shows price dynamics in the market. When researching the real estate market, if we observe an

average price of 1 sq. m. for residential property, the indicator may increase when more expensive apartments (prestigious area, in best condition and etc.) are sold in one month compared to the previous month. However, this does not mean that the prices for residential property have increased. A real estate market index is necessary to determine the real change in prices. With GREI we will learn whether the fixed price on real estate has increased or decreased in any given month, and it will also show the real dynamics of real estate prices.

- What research methodology was used in the project and does it reflect international experience?

- International practice rely on Laspeyres, Paasches and Fisher methodology to observe real estate prices. In our project, we use international practice to calculate the real estate index. In addition, we use different sources to calculate different indicators. For example, data (online published announcements) for the

real estate index will be collected from one of the largest real estate web-pages used in the country and processed monthly. At this stage, on average 5000 announcements will be processed monthly for the Tbilisi market.

- How frequently will the Real Estate Index be published and when will be the results of the first study be available?

- Real estate index will be published once a month, and the first results will be available to the public in the nearest future. In the beginning, the index will cover districts in Tbilisi, as well as residential and commercial properties. The study will be conducted not only on sale of real estate but also the leasing and renting of property. REM lab will calculate not only the real estate market index, but also other indicators for Tbilisi and the country.

- How important is the regular study of the real estate market for business and the country’s economic development in general?

- One of the goals of our project is to increase the effectiveness of banking, and strengthen the function of research and analysis. However, regular research of the real estate market also serves broader goals. Local businesses or foreign investors (developers and others) need a realistic picture of the Georgian real estate market in order to make business decisions. Investing in a market, for which data is not available or is limited, poses significant risks and investors can avoid the market for this reason. Regular studies and accessible and reliable statistical data serve as a foundation and encouragement for the development of various businesses, as well as the economy as a whole. It should be noted that REM lab is a project that supports the development of the real estate market, and will bring significant benefits - not only to the private sector but also the state and any interested ciziten.

www.cbw.ge <<

Georgia’s Long and Winding Road to Europe: Deutsche Welle

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More than 20 Private Companies have Joined to Project Check in Georgia

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The Czech Republic is a Steadfast Supporter of the EU-Georgia Visa Liberalisation Process

May 16, 2016 #145

ECONO-MIX municipalities approved 5 032 building projects. As to complete projects, the situation is radically different. By September 2015, only 8018 projects were finished out of 35 172 ones.

Thousands of our compatriots have lost finances in this sector and they remain without residential spaces anyway: the building has not been constructed yet and companies sell unconstructed floors. Tbilisi has grown into a city of building boom, while many of our citizens have not received respective residential spaces.

“The population lacks for financial education.

Georgian consumers are ignorant of economic issues and financial aspects. They take unreasonable decisions depending on common situations”, engineer-economist Eka Gegeshidze noted.

Real Estate Market – Misbalance between Dreams and Solvency NAZI SARALIDZE SOPO MAKARIDZE

At first sight, everything is in order and legal. All licenses are issued. However, this business frequently damages our citizens.

The fact is that the building boom distorts the appearance of Tbilisi and makes it useless for living.

U

nder the current legislation, anybody is permitted to build high-rise residential buildings by submitting required documentations to the Tbilisi municipality.

It is sufficient to agree building project structure, expertise, façade design and several technical issues to obtain a building license.

According to GeoStat, the national statistics service of Georgia, 35 172 licenses were issued from 2006 through September 2015 for construction of residential buildings and houses in Georgia.

The number of those wishing to implement building projects especially increased by 2010, when 2 888 licenses were issued.

According to the January to September 2015 report, local

Well-organized PR campaigns swindle our citizens. We often hear about various building projects. Some of them offer vehicles to boost sales, some development companies offer home appliances, or travel tours to various countries. Similar campaigns make customers light-headed and they unreasonably buy incomplete apartments, while nobody knows what the value of the purchased apartments will be two years later.

Today we have heavier situation, because the national currency has depreciated, while apartments are sold due to the USD exchange rate.

“The population of Georgia has become less solvent to buy apartments. This signifies the prices of apartments of 45 000 GEL have risen to 75 000 GEL due to the USD exchange rate”, economist Eka Gegeshidze said.

The last period has actualized the building boom in our city.

However, Irakli Rostomashvili, head of the Georgian Association of Developers, says:

“I would not say too many buildings are being constructed. The quantity of ongoing projects reflects the existing demand.

When Tbilisi residents’ solvency match their dreams, real building boom will start in the capital city in this case, while today many reporters just find this topic as useful material for coverage”.

Naturally, prices depend on locations. Therefore, customers’ dreams often differ from

5 their real solvency. If you want to buy an apartment in central areas of the capital city, prices are expensive, while in outskirts the price of one square meter ranges from 450 to 500 USD. The main problem consists in the state of mind of our society when customers aspire to purchase apartments in prestigious areas for the price that suffice to buy real estate in only outskirts. This signifies the price of an apartment also includes the land plot price, besides the price of building materials and other tax expenses.

Developers do not outline this aspect. Consequently, the land plot prices in prestigious zones are much more expensive and this factor is reflected on the apartment prices.

Ambitious customers buy apartments in Vera and Vake and ambition is a costly affair, Irakli Rostomashvili said…. Building of residential apartments is an ordinary business that is oriented on making money and it cannot work without profits. Development companies cannot act as charity organizations. They will stop operation without profits, while customers have wide option of prices and they should make realistic decisions.

“People who complain about shortage of money and poverty and misery… the price of a square meter in outskirts is 450 USD. Which country offers lower prices? But Georgian customers want apartments in Vake, but at low rates – this is not correct position. Those who want to live in Vake and have big ambitions, buy apartments in Vake and ambitions are expansive”, Irakli Rostiashvili, head of the Georgian Association of Developers, said.

Private businessmen start construction projects without obstacles. The quality of residential buildings depends on companies only and various developers select staff due to various criteria. The company representatives noted that all fields lack for qualified staff and they employ workers based on their own experience and criteria for the purpose of implementing construction projects.

The above-mentioned suggests that various factors determine the price of residential apartments. We see many new buildings, but a certain category of our compatriots cannot afford buying them. Nevertheless, building boom continues in the city.

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GIORGI SAMANISHVILI

The head of National Wine Agency of Georgia

REGULATIONS

Georgian Wine Exports Grow in All Directions

Business Against Online Loans

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The exports have grown by 84% compared to 2015. The ratio of Russia accounts for 51%, the same volume of 2015. This signifies the Russia’s ratio has not increased. The current dynamics shows that the exports have increased in all directions. The growth was especially important in the Russian direction, because the situation was critical at the beginning of 2015. The situation in the regions has stabilized and business relations were revised between Georgian exporters and Russian importers.

The exports volume has increased at the expense of reduced prices. Total revenues have increased and all directions record positive tendencies.

-It should be stressed the growing dynamics is recorded in all directions, both on traditional markets and in the USA, Asia, China. I would say the same in the direction of EU, for example, in Poland, Great Britain and Germany. The ratio is low in France, but the indicator has doubled in this country too. Therefore, the exports grow in all directions. The diversification process is very successful.

Google Bans Advertising Online Loans in Search Engine

MERAB JANIASHVILI Economic Analyst

T

he private business sector objects to online credit organizations.

Apparently, online credits are considered hazardous undertaking in not only Georgia. Starting July 13, 2016 Google company will cease placing microloan advertisements in its Adwords system. The new regulation refers to any loan advertisement with the maturity period of less than 60 days or the annual interest rate of no more 36%. Naturally, restrictions were set to online loans, first of all.

It should be noted that Georgian online credit organizations actively use internet-advertising resources too, including the Google services. And the mentioned regulations will restrict their activities, first of all.

The technological giant justifies this step by arguments of microloan opponents. They think that similar organizations misuse the misery of impoverished people and offer financial resources on unethical conditions.

Two large Chinese firms help revive Georgia’s tea industry Two major Chinese companies are helping revive Georgia tea industry by developing an industrialcommercial, and cultural-tourism project to support the rehabilitation of tea plantations and improve the quality of tea produced in Georgia.

This morning Georgia’s Ministry of Agriculture, state-owned shareholding company the Partnership Fund (PF) and two Chinese companies - Beijing Jinfenghengye Agricultural Development Co Ltd and Xinjiang Hualing & Trade (Group) Co Ltd signed a Memorandum of Understanding (MoU).

By signing the MoU, signatories committed to jointly create a tea industrial-commercial and cultural-touristic project that would revive Georgia’s tea industry. Specifically, the project aimed to support and develop tea production, improve the quality of tea produced in Georgia, employ more people in the regions and raise the skillset and experience of people who could plan and grow tea plantations. Georgia and China have 100 years of history of tea producing, friendship and cooperation. Our country has the best conditions for developing tea production. It is also very important that Georgia has this great opportunity to position itself in Asian and European markets,” said head of the PF Davit Saganelidze.

He noted the project would also be beneficial for boosting Georgia-China bilateral relations and foster cooperation in the New Silk Road strategy, which envisioned re-establishing the old trade route from east to west. The two Chinese companies who signed the MoU with Georgia today have a vast history and proven track record of developing agriculture in China and in other countries.

Beijing Jinfenghengye Agricultural Development Co Ltd is a large Chinese firm that specialises in developing agriculture and selling agricultural products. Xinjiang Hualing & Trade (Group) Co Ltd it is a multi-profile company that owns wholesale trade centres and also works to develop China’s agricultural sector.

May 16, 2016 #145

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This decision is the first case, when Google globally bans a financial product.

Previously, the ADWORDS system had restricted only trade in firearms, drug trades and intimate service advertising

”

“The research has proved that the mentioned loans grow into huge debts. The objective of the mentioned change is to protect our consumers from detrimental financial products.

At the same time, restrictions will not concern automobile installment payment schemes, students or commercial loans and other similar offers”, the Google press release reads.

Wade Henderson, president of The Leadership Conference on Civil and Human Rights, says that “the new approach was developed against the aggressive marketing applied by these companies for enticing consumers and issuing loans at shocking high interest rates. Frequently, insolvent people borrow these loans too. Efficiency of these approaches will be appraised later, but we hope introduction of these

regulations will narrow the direct access of people to these hazardous products”.

This decision is the first case, when Google globally bans a financial product. Previously, the ADWORDS system had restricted only trade in firearms, drug trades and intimate service advertising.

Microloan opponents hope that other technological companies will also follow the Google sample and this decision will block financial companies to reach consumers by the internet.

The Adwords advertising system of Google is a de-facto standard of the internet. Through this service, companies place advertisements in both the Google services (search, Gmail, YouTube), and millions of external websites that are included in the Adsense system. There are many similar systems – a major part of commercial websites spends even a small part of their advertising traffic on the Adsense.

There are many opponents who object to online loans, because of enslaving conditions, in Georgia too. In the last period, the field regulation issues are actively discussed. Minister of Economy and Sustainable Development of Georgia Dimitri Kumsishvili noted that a new project is being developed, under which the national bank of Georgia (NBG) will be authorized to regulate the field of online credit organizations. „We believe this is a correct decision. The bill calls for protecting the consumer rights, because, regretfully, our citizens do not have due level of financial knowledge to protect their own interests independently. Consequently, our objective is to ensure the mentioned services for our citizens without taking excessive and unnatural risks”, Kumsishvili said.

It should be noted that the Georgian business also calls on the government to regulate online loans. Lasha Nikolaishvili, head of the Rico Credit supervisory board, says online credit organizations, first of all, should be stripped of the right for arresting real estate and effective interests rate must be determined. Online credits have aggravated social situation in

the country because of legislative gaps, Nikolaishvili added.

“Today the existing legislative gaps enable companies to seize the client’s real estate before the case completion. This situation aggravates the client’s condition.

At our company, 60% of mortgage loans have been taken because of online loans. In a short period, 100 GEL loans grow to 1000 GEL, while trials may last 2 years. And the legislative gaps enable online credit organizations to arrest the client’s real estate and movable property during the trial”, Nikolaishvili said.

Our country should share the experience of other countries and strip online credit organizations of the right for arresting the client’s real estate. „If they want to have an access to real estate, they should visit a notarial office, sign a due agreement and issue loans only after that. No country gives such liberty to online credit organization. Online credit organizations just arrest real estates and houses”, Nikolaishvili said.

It should be noted that Georgian commercial banks also object to online loans. The recent practice has showed that the clients who take online credits worsen their credit histories at commercial banks, even if they do not have overdue payments.

This signifies if a client uses an online credit, commercial banks may lend a loan to the client for higher interest rates.

Thus, our citizens and the private business sector jointly object to online credit organizations. It is interesting that Google’s decision to set regulations to fast loan companies is an unusual case.

Online loans belong to the field of legal business and as a rule similar restrictions are set to illegal business activities. Does this circumstance equalize online credit organizations to gambling games, porno business, traffic in arms and drugs?!

May 16, 2016 #145

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CURENCY

Yield on USD Denominated Deposits Shrinks

“If the national bank grows the foreign currency reserve ratio, this signifies it has restricted foreign currency inflows.

On the other hand, the NBG carries out smooth policy and shrinks the reserve ratio in the national currency. This signifies higher volumes of GEL will be supplied.

Consequently, the demand will increase in the national currency and commercial banks will have to increase interest rates on GEL denominated deposits.

However, it is difficult to make such a conclusion in the short-term period, because the correlation of interest rate to the currency rate may be considered in only long-term perspective”, Mikheil Tokmazishvili said.

Specialists do not rule out that in summer period interest rates on USD denominated deposits fall to 2.5-3%.

As to credits, averaged weighed annual interest rate on foreign currency denominated loans decreased by 0.1% to 9.9%, while the interest rate on GEL denominated credits declined by 2.4% to 20.9%.

In case of GEL-denominated loans, interest rates on individual loans declined by 2.2% to 25.6%, while increased for corporate clients by 0.5% to annualized 14.5%.

In case of foreign currency denominated loans, interest rate on corporate loans have not changed and remains annual 10.0%, while the interest rate has decreased by 0.3% to 9.9% in case of physical bodies.

In the reporting period, as compared to March 2015, interest rates on foreign currency denominated loans decreased by 0.7% to 9.9%.

Economist Lia Eliava says that interest rates on USD-denominated credits will increase. The reserve requirement of commercial banks is just a mechanism for lowering credit multiplier.

Interest rates on foreign currency denominated deposits fall, while the yield on GEL denominated deposits rise. Depositors who have conversed GEL denominated deposits into USD are facing new problems. They have to endure the decreased interest rates or carry out conversion into GEL, however, they will lose more finances in the process of constant conversion of deposits. As to loans, specialists do not expect interest rates to increase on “Commercial banks borrow USD-denominated loans because the reserve coefficient has increased. USD at 1-3%. The national

bank charges 2% on the reserve. Commercial banks do not bear much loss. In some countries, the reserve ratio makes up 25-28%.

BANKS AND FINANCES

A

t almost all commercial banks, averaged interest rate on GEL denominated deposits makes up 11% and 3% on USD-denominated deposits. Commercial banks show less attention to EUR and the yield on EUR-denominated deposits makes up only 1.5%.

According to the official report of the national bank of Georgia (NBG), as of April 1, as compared to the same period of 2015, interest rate on foreign currency denominated deposits decreased to 3.6% from 5.2%. Almost all commercial banks have lowered interest rates on USD denominated term deposits to 3.5%, while on GELdenominated deposits the interest rate exceeds 11%. In the last year the averaged interest rate on GEL-denominated deposits did not exceed 9%. It should be also noted that following the GEL exchange rate strengthening, the dollarization ratio in deposits declined by 1% for a month.

This statistics suggests that today the national currency remains the most indemand currency for commercial banks.

Specialists explain increased interests rates on deposits. First of all, the demand for USD has evidently fallen. The misbalance

makes up about 1 billion USD. Secondly, the national bank of Georgia has increased the coefficient of foreign currency reserves to 15-20%. This signifies that the USD resources have become expensive for commercial banks and they find it useless to pay high interest rate for it. Thirdly, the national currency rate stabilization and further strengthening expectations have restored the confidence in GEL to a certain degree.

It should be noted in March 2016, as compared to February 2016, the bank system’s deposit liabilities decreased by 347.8 million GEL (down 2.4%) to 14.6 billion GEL as a result of reduction in foreign currency denominated deposits.

The volume of GEL-denominated deposits increased by 42.5 million GEL (up 1%) and equaled 4.17 billion GEL. The increased ratio of term deposits has also driven a growth in national currency denominated deposits.

GEL resources in individual deposits makes up 36.1%. Foreign currency denominated deposits increased by 0.8% (31.8 million USD) and marked 4.27 billion USD at the end of the reporting period.

The deposits dollarization indicator

in March 2016 decreased by 1% to 70.8%.

The dollarization coefficient of corporate and individual deposits made up 61.1% and 81.4% respectively in late March.

Economist Mikheil Tokmazishvili says that in summer period, especially at the expense of intensified tourism season, USD inflow to Georgia will increase and the demand for GEL will further grow.

Therefore, commercial banks prefer to attract GEL resources.

“I do not possess latest updates on the demand for USD. The one thing is clear.

The imports shrink. Moreover, USD inflows to the country grow. Tourism seasons is intensified, new festivals will be held”, Mikheil Tokmazishvili said.

Formation of interest rates on foreign currency denominated deposits are related to specific currency demands, as well as on balance of payment, exports-imports correlation and so on, he added.

This is a quite efficient monetary mechanism to reduce USD-denominated loans and increase the larization in the economy. Therefore, I do not expect USD-denominated loans will increase in value”, Lia Eliava said.

According to official indicators, in March 2016, as compared to February 2016, crediting by commercial banks in the economy decreased by 241.4million GEL to 15.62 billion GEL. The credit portfolio base was reduced after indicators of foreign currency denominated loans declined. The total credit portfolio dollarization coefficient declined by 0.9% to 64.9%.

www.cbw.ge <<

The EBRD to fund Evex With a US$10 Million Loan

<<

Georgia Sees Surge in Chinese Investment

<<

Global Start-Ups: Cut Costs! Think Tbilisi, Not Silicon Valley

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BUSINESS

May 16, 2016 #145

Ice Cream Market Heats Up T

he ice-cream business becomes especially important prior to the coming summer season. What new products do the ice-cream manufacturers offer to customers? What do they expect on this season? How competitive is the market and what problems do manufacturers face?

LLC Aisi – Gurjaani Ice-Cream Brand Guram Berekashvili, head of LLC Aisi, Gurjaani Ice-cream manufacturing company, says that the company will introduce two new ice-cream products this season. Children ice-cream PIKOLI has been already put into distribution network and its price makes up 0.50 GEL. Another new product will appear in the retails network in several days. At this stage, the company manufactures 20 varieties of ice-cream products and sells 100% of them on the Georgian market, Berekashvili noted.

In previous years, the company was exporting Gurjaani Ice-cream to Azerbaijan, but now the company operates only on the domestic market.

“Previously we were exporting our products to Azerbaijan, but later I suspended exports, because the results were not satisfactory. If there is a serious client with serious plans, we will think of exports”, Berekashvili noted.

As to competition, the head of LLC Aisi, explains that the ice-cream business is the field with healthy competition. In the last period, several Russian and Ukrainian ice-cream companies have entered the Georgian market, however, they cannot compete with Georgian manufacturers in terms of quality or prices.

PINGO ice-cream Vitali Gelashvili, one of the founders of Four Bross, PINGO icecream manufacturer, explains that the company produces 16 varieties of ice-cream products, prices are standard and range from 0.50 to 0.70 GEL. The product is entirely sold on the domestic market, he said and added that exports negotiations were conducted with Armenia and Kazakhstan, but agreement was not reached finally.

The company cannot provide valuable advertising campaigns and this is a serious problem. The current budget of the company does not enable to carry out marketing and advertising campaigns, Gelashvili said. As a result, they will face problems with major network markets. “Despite we produce high-quality products, the major network markets give priority to lower-quality but perceptible products. But this is inner problem and the time is required to resolve it”, Gelashvili said. The PINGO ice-cream manufacturer also talks about imported ice-cream products. Ukrainian and Russian ice-cream products belong to comparatively lower segment, but they cannot compete with the Georgian product.

There is no problem with the product transportation, all standards and norms are protected. Georgian ice-cream is of higher-quality product compared to Russian and Ukrainian products. “The confidence aspect is an additional factor. The Georgian consumers trust to the Georgian product more”, Gelashvili noted.

As to the ice-cream quality, Georgia produces highquality products, but they are not made of natural milk, Gelashvili added.

“I do not have information what happens in other countries,

but we have this reality. According to my information, ice-cream is made of natural milk in Great Britain, however, I do not know what the final product looks like. Under the current technologies in Georgia, it is ruled out that companies produce ice-cream, from natural milk. We use high-quality milk powder and natural butter cream. For example, we use Valio butter. Coconut fat is used for lower-quality ice-cream products and this is much cheaper”, Gelashvili noted.

Barambo Ice-cream Barambo company is meeting the new season with many innovations. Barambo has entirely renewed the existing assortment and introduced new varieties and changed the product package.

The company says that a new exactly balanced taste was created by mixture of natural fatless milk and crispy vafel with Belgian chocolate, natural vanilla and ecologically clean fruit.

This assortment was enriched by cream-brulee Barambo Burger (with rusk) and TWINS ice-cream with chocolate and rusk.

Appearance of Barambo Export’s new line ice-cream is an important event on the Georgian market. It includes an assortment with wonderful taste characteristics. For the first time in Georgia, Barambo has produced three sorts of icecream cakes – Barambo Export ice-cream cake with Panakota strawberries, Caramel vanilla and ice-cream cake Tiramisusponge cake. Individual ice-cream in 500milliliter containers of Barambo Export is also an important innovation – with special tastes – Barambo Export vanilla with chocolate pieces, figs, cream-brulee with caramel pieces, brown, big con with vanilla-chocolate topping and yoghurt icecream with cherry topping.

Barambo has also introduced a variety of assortment family-type ice-cream products under the exports line: Barambo Export family vanilla, family nut, family panna cotta with blackberry topping, family chocolate cream, (1000 milliliters), as well as 2000 milliliter vanilla-chocolate and family panna cotta with strawberry and black currant topping. Family vanilla, family vanilla-chocolate-biscuitine, family blackberry-panna cotta-black currant in 5000 milliliter packing.

The development of a new line was a surprise the customers and Barambo Export deserved approval and popularity, the company noted.

Tolia Ice-cream Tolia marketing manager Sandro Lomsadze is content with the current sales.

“Based on the existing competition on the ice-cream market, at this stage we will keep silent about new products. However, in the near future our consumers will taste more new and interesting products”, Sandro Lomsadze said.

Thus, Georgian ice-cream manufacturers are meeting the 2016 season with many new products. It is interesting how successful the 2016 season will be.

May 16, 2016 #145

9

ASIA

Turkmenistan to Host International Anti-Smoking Meeting Turkmen Leaders Ban Beards, Ballet and Pet Pooches THE Department of Health will send two officials to a nanny state anti-smoking conference in Turkmenistan tomorrow despite the country being run by a mad dictator, The Sun can reveal.

GIORGI KHELADZE

The British government say they have “significant concerns” about human rights in the repressed central Asian country that has banned smoking outside and only sells fags from state owned shops. Turkmenistan’s President Gurbanguly Berdymukhamedov uses the title “Arkadag” or “Protector”.

In recent years the cultist leaders of the former Soviet state have imprisoned thousands of political opponents, banned the foreign press and also banned ballet, beards and even dogs.

Berdymukhamedov recently erected massive 20m high 24-carat gold monument of himself riding a horse in the desert nation. Tory MP Philip Davies demanded that officials cancel the planned visit, telling The Sun: “It makes you wonder how authoritarian and draconian the Department of Health is planning on being to smokers if they think they can learn anything from Turkmenistan.” Last night the Department of Health defended sending their staff to the repressive state, as the tickets and hotel will be paid for by the World Health Organisation.

This week WHO, the United Nations’ public health body, will hold its European Regional Meeting on the implementation of the Framework Convention on Tobacco Control in the country’s capital Ashgabat. Despite being slammed as a repressive regime by Amnesty International, Human Rights Watch and Médecins Sans Frontières, WHO gave Turkmenistan a prestigious award for their fight against tobacco in 2014. The UK Foreign Office’s own advice to travellers to Turkmenistan says: “It is against the law to smoke outside in Turkmenistan; this law extends to restaurants and other communal spaces.” “From January 2015 a new regulation has banned the import of more than 2 packets of 20 cigarettes per person and cigarette sales will be restricted to state run shops and outlets.

“It is against the law to give tobacco products as a gift; if you are caught you could be fined.”

They also note: “The human rights situation in Turkmenistan throughout 2015 remained of significant concern.”

The respected Human Rights Watch group say the country has an “abysmal human rights record saw no real improvements.”

They add: “The president, his relatives, and their associates maintain unlimited control over all aspects of public life.

“The government thoroughly denies freedoms of association, expression, and religion, and the country is closed to independent scrutiny.”

A Department of Health spokesman told The Sun last night: “This is a major public health event that impacts on tobacco control policies in the UK, which the WHO happens to be holding in Turkmenistan, so we think it’s right that officials should attend to make sure that the UK position is represented.”

The added: “Our officials’ travel, accommodation and subsistence is being paid for by the WHO, at no cost to the British taxpayer.”

However WHO’s website cites that it is part funded by the British government.

On April 11, the Foreign Affairs Committee of the European Parliament held its first hearing on the Union’s Partnership and Cooperation Agreement (PCA) with Turkmenistan. While the PCA

has been pending since the late 1990s, Europe has avoided finalizing it over human rights concerns and the profoundly undemocratic behavior of the Turkmen government. Unsurprisingly, human rights organizations including Human Rights Watch castigated the decision to hold a hearing and urged the Parliament to defer approval until Turkmenistan met its human rights benchmarks. A cursory look at Turkmen political life makes it clear those benchmarks won’t likely be met anytime soon.

With its enduring reputation as one of the world’s most repressive states, the question of Turkmenistan’s relationship with Europe comes down to a debate over whether the economic advantages the EU stands to gain are enough to let it swallow concerns over rights abuses and autocracy. Turkmenistan is sitting on the world’s fourth-largest natural gas reserves and is among the world’s top 15 producers. With Iran and Russia scaling back imports and China’s economic slump reducing demand, the Turkmen government is eager to find new markets for its key export.

Energy-hungry European states, for their part, would be equally happy to buy Turkmen natural gas (which would be imported via a new Trans-Caspian Pipeline) as part of wider efforts to diversify their energy supplies. In meeting their energy needs, the EU seems happy to leave its competing commitment to human rights by the wayside. As the European External Action Service diplomatically puts it: “The EU wishes to increase its dialogue and cooperation with

“

FROM JANUARY 2015 A NEW REGULATION HAS BANNED THE IMPORT OF MORE THAN 2 PACKETS OF 20 CIGARETTES PER PERSON AND CIGARETTE SALES WILL BE RESTRICTED TO STATE RUN SHOPS AND OUTLETS

”

President put up this 20m high 24-carat gold monument of himself riding a horse

Turkmenistan, and hopes to strengthen its institutional framework of cooperation with the ratification of the PCA.” However, the European Union isn’t the only international body getting cozy with Berdimuhamedov’s government. Britain’s Department of Health has come under fire for its plans to send representatives to the World Health Organization (WHO) European Regional Meeting in Ashgabat. That conference will focus on the implementation of the WHO’s Framework Convention

on Tobacco Control (FCTC), with the choice of venue perhaps influenced by the strident antismoking laws implemented by Niyazov and maintained by Berdimuhamedov. While the WHO actively criticizes European Union bodies for what in their view is a violation of the FCTC’s Article 5.3 (relating to officials’ interaction with the tobacco industry), it has lauded the Turkmen government for its tobacco control efforts.

The WHO’s singular embrace of Turkmenistan comes across as contradictory, considering

Berdimuhamedov (himself a dentist by training) still oversees one of the most dysfunctional healthcare systems in the world. The current president may have re-opened provincial hospitals, but the quality of medical care available outside of the capital has not progressed beyond the 1970s. The government has poured hundreds of millions of dollars into cutting-edge facilities in Ashgabat, but hospitals elsewhere lack running water, modern toilets, and even heating systems.

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BUSINESS

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Teliani Valley Plans to Attract $13 Million from the Shareholders Wine producer Teliani Valley declares about the placement of shares. The company plans to place not more than 200 million pieces of shares with voting right, which might be purchased merely by the shareholders. Nominal value on per share is 0.065 USD, respectively the company will be able to attract 13 million USD. Offer term expires on May 20. The shareholders of Teliani Valley are Liberty Consumer – 50,23%, BGEO Group -20.47%, Firebird Avrora Fund – 14.21%, Firebird Republics Fund – 8.82%, other – 6,27%.

BANK

BRAND

PASHA Bank was named the Fastest Growing Corporate Bank in Georgia On April 18th, 2016, for the second year in a row PASHA Bank was named the Fastest Growing Corporate Bank in Georgia

by Global Banking and Finance Review Awards.

Being a Baku-based financial institution, PASHA Bank provides corporate and investment banking services to large and medium-sized enterprises in Georgia since 2013.

In this short time, the Bank has been awarded various international designations, one of them being the Global Banking and Finance

Review Award. Since its inception in 2011, it reflects the innovation, achievement, progressive and inspirational changes taking place within the Global Financial community. The Awards were created to recognize companies of all sizes which are prominent in particular areas of expertise and excellent within the financial world.

The Awards have evolved and grown to include those in Banking, Foreign Exchange, Insurance, Pension Funds, Compliance & Advisory,

NEWS

TECHNOLOGY

Investor Puts 3 mln USD in Gurjaani Brandy Distillery Construction

Georgian Olive Entering the World Market

The construction of a brandy distillery is underway in the village of Velistsikhe, the Gurjaani District.

Kakhetian Traditional Winemaking has invested 3 million USD in the project implementation. The company’s General Director Zurab Chkhaidze told the Business Contact, the plan will be unveiled in late August.

KTW’s New Distillery in Gurjaani to Open in August The construction of a brandy distillery is underway in the village of Velistsikhe, Gurjaani district in Kakheti.

The plant will process local grapes to distill brandy spirits.

According to Georgian news site BusinessContact, Kakhetian Traditional Winemaking (KTW) has invested 3 million USD in the project implementation.

KTW’s general director Zurab Chkhaidze said the plant would be opened in the end of August.

Corporate Governance, Brokerage & Exchanges, Project Finance, Binary Options, Investment Management, Technology, Asset & Wealth Management, Exchange Traded Funds, Real Estate and other areas.

“We are more than happy to win this award for the second year in a row.

For a young company like PASHA Bank this award is a proof that we are moving in the right direction and the team does its best to reach new heights together. We strive to contribute to the growth and development

George Svanidze Founder of the Georgian Olive

The products of “Georgian Olive” will soon appear at the market from October 2016. Moreover, it is planned the production to enter the world market.

The first, high-class olive processing plant is already operating in village Sakobo, Signagi Municipality.

According to George Svanidze, founder of the company, he plans to make additional investment of 5 million GEL in this branch until 2018 and increase of olive plantation from 300 ha to 1000 ha.

George Svanidze expresses his gratification, that they have a chance to produce high quality olive oil with a competitive price.

Additionally, he makes a note on the following advantage, by which Georgia is distinguished from its main competitor countries: these are cheap workers, lower rates on energy and liberal tax policy.

It should be noted, that the first product will appear at the market from October under the name of “Georgian Olive”. However, the brand plans to add brands for the future. The products will be sold in the chain of “Carrefour”.

“I think that, if you do anything correctly with your heart, you should not be feared of the risk,” – Svanidze said.

of the Georgian and regional economy through funding value accretive projects while providing top-quality service both locally and regionally. We are committed to our long standing philosophy of doing business in ethical, reliable and sustainable manner. International recognitions like this are definitely helping our motivation and self-confidence, which is so important for every young company,”- said Shahin Mammadov, CEO and Chairman of Board of Directors at PASHA Bank.

Stores of Forever New to be Opened in Tbilisi New fashion clothing brand Forever New will be opened in Georgia. Businessman George Svanidze announces opening of stores of Forever New after New Look in Georgia by billionaire Tom Singh. Forever New is an Australian brand, which is the fastest growing chain in Georgia and holds more than 250 stores within dozens of countries. Tom Singh has arrived in Georgia for the first time with the assistance of Tika Tour.

“Singh is an official billionaire and he has made the investment after the arrival, he opened his own shops in the country.

He plans to bring the second brand in Georgia, the matter concerns to Forever New”, – Svanidze notes.

To note, Tika Tour is focused on VIP tours. Famous people are applying their services. “Such persons are our ambassadors in abroad and they make promotion of Georgia in their circle.

Tika Tour is a partner of a world-class “Keren Down”, which holds the status of the number one tour agency in the world”, – Svanidze notes and declares, the number of VIP tours is growing.

The EBRD financing will allow Evex to renovate and refurbish the Deka hospital in Tbilisi by mid-2017.

Value of Family Medicine Chest Declines by 33.6%

EBRD supports development of new hospital in Tbilisi

The Healthcare Platform organization continues publishing the April report for the Panaskerteli Medicine Chest as part of the Panaskerteli Pharma Monitor project. After baby medicine chest, the organization has identified the list and prices of medications and accessories for the family medicine chest.

The research has showed that as compared to March, in April the family medicine chest value decreased by 33.6%. Namely, the family medicine chest price in April made up 114.32 GEL, while the figure marked 172.23 GEL in the previous month. Prices considerably decreased on several medications in April, for example: the price of analgesic Ketorolak was 9 GEL in March and 1.35 GEL in April.

The organization has identified prices of 30 medications and accessories at four leading pharmacy networks.

The list and prices of family medicine chest medications are as follows: Medications and Prices of the Family Medicine Chest: Accessories: Phoneidoscope – 12.80 GEL Gloves (sterile) – 0.55 GEL Thermometer – 10.00 GEL Scissors – 1.50 GEL Injection syringe (0.30g) – 0.17 GEL Antiseptic Agents: Cohesive Bandage (bacteriocidin) – 2.00 GEL

BRUNO BALVANERA EBRD Director for the Caucasus, Moldova and Belarus The EBRD is financing the development of a new hospital in Tbilisi with a US$10 million loan to JSC Medical Corporation Evex (Evex) to establish a state-ofthe-art facility in the Georgian capital.

Evex has been operating since 2009 and is fully owned by Georgia Healthcare Group (GHG) PLC. Established in 2015, GHG has become one of the leading private health care institutions in Georgia, successfully completing an initial public offering on the London Stock Exchange premium listing in November 2015.

The EBRD financing will allow Evex to renovate and refurbish the Deka hospital in Tbilisi by mid-2017. The new facilities will provide patients with faster, more modern emergency services and state-of-the-art equipment for general, interventional and cardiovascular surgery. Deka Hospital will be able to offer additional services such as oncology and radiology, for which demand currently exceeds supply, and become a full-scale multi-profile hospital with a total of 310 beds.

The investment is part of a wider development programme that includes the expansion of a network of clinics and the development of new health care services throughout the country.

The EBRD loan will be complemented by up to US$ 250,000 grant provided through the Bank’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme to support the installation of energy efficiency technologies such as condensing

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HEALTHCARE

May 16, 2016 #145

boilers, LED lighting, a solar photovoltaic plant and a building management system to control energy and water consumption. These measures will improve energy consumption and reduce CO2 emissions.

Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus said: “By investing in the renovation of hospitals we invest in people and their future and in improving their lives.

This project will have a demonstration effect for a new generation of health care.”

“I am pleased to announce the successful completion of an important long-term funding transaction for our company, supporting the sustainable growth of our business. This is the first project for GHG with a development finance institution. It will help us renovate and launch a large health care facility, contributing to the successful implementation of our strategy. A long-term relationship with an institution such as the EBRD is important for our success as it brings significant knowledge and the sharing of experience, combined with stable funding,” added Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.

The EBRD is a leading institutional investor in Georgia. Since the start of its operations in the country, the Bank has invested over €2.6 billion in 190 projects in the financial, corporate, infrastructure and energy sectors, with 91 per cent of these investments in the private sector.

Sterilized bandage (7*14cm) – 1.04 GEL Cotton (steril) – 1.00 GEL Brilliant Green – 0.30 GEL Hydrogene Dioxide – 1.25 GEL Iodine (Betadine 100g) – 0.51 GEL Turmanidze Ointment – 4.90 GEL Injection Water – 0.80 GEL Cardio Drugs: Corsiz – 1.50 GEL Ammonia Solution – 1.00 GEL Validol – 0.44 GEL Co-Enalarpil – 5.30 GEL Analgesic and Fever Medicines: Ibuprofen – 2.80 GEL Ketorolak (Humanity) – 1.35 GEL Paracetamol – 0.30 GEL Ambroxol – 1.30 GEL Eyedrops: Albucid – 1.20 GEL Earache Drugs: Otipax - 7.20 GEL Intestine Drugs: Rehydron Optim – 25.95 GEL Festal – 1.74 GEL Drotaverine - 0 2.50 GEL Coal (white carbon active) – 3.12 GEL Antihistamine: Cetirizine – 3.50 GEL Pressure Relief Drugs: Kaptopril (20, 50g) – 4.60 GEL Adipin (30, 10g) – 13.70 GEL

First Aid Medicine Chest Value Declines by 15.1% in April

“

This is the first project for GHG with a development finance institution.

It will help us renovate and launch a large health care facility, contributing to the successful implementation of our strategy.

”

The Healthcare Platform organization has published the list and prices of the first aid medicine chest drugs. The report was composed as part of the Pharma Monitoring project.

The Healthcare Platform has already published March and April reports on medicine chests for baby, family and children.

The price of first aid medicine chest medications decreased by 15.1% in April. Namely, in March the price of first aid medicine chest was 158.45 GEL and 134.45 GEL in April.

The prices fell on several medications. For example: the price of Ketorolak medication was 9 GEL in March and 1.35 GEL in April.

The organization identified the price of medications at four leading pharmacy networks. The list and price of first aid medicine chest medications is as follows: Antitoxic agents: Rehydron Optim – 25.95 GEL Festali – 1.74 GEL Drotaverine (N20) – 2.50 GEL Coal (white carbon active) – 3.12 GEL Analgesics: Ibuprofen: - 2.80 GEL Ketorolak (Humanity) – 1.35 GEL Anti Cough and Fever Medications: Salbutamol Sulfate Inhaler. Aerosol – 6.95 GEL Paracetamol – 0.30 GEL Ambroxol – 1.30 GEL

Antihistamine: Cetirizine – 3.50 GEL Pressure Relief Drugs: Captopril (N=20,50g) – 4.60 GEL Adipin (N30, 10g) – 13.70 GEL Cardiac Medications: Corsiz – 1.50 GEL Ammonia solution – 1.00 GEL Nitroglycerin – 0.85 GEL Validol – 0.44 GEL Co-Enalapril – 5.30 GEL Tranquillizers: Somna-Ritz – 5.00 GEL Antiseptics: Cohesive Bandage (bacteriocidin) – 2.00 GEL Sterilized bandage (7*14cm) – 1.04 GEL Cotton (steril) – 1.00 GEL Brilliant Green – 0.30 GEL Hydrogene Dioxide – 1.25 GEL Iodine (Betadine 100g) – 0.51 GEL Turmanidze Ointment – 4.90 GEL Injection Water – 0.80 GEL Accessories: Phoneidoscope – 12.80 GEL Gloves (sterile) – 0.55 GEL Thermometer – 10.00 GEL Scissors – 1.50 GEL Tourniquet – 14.80 GEL The Healthcare Platform organization continues monitoring of list and prices of various medications at pharmacy networks.

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May 16, 2016 #145

Eprem Urumashvili Unmasks Rustavi 2 TV Company Disinformation

E

prem Urumashvili accuses Rustavi 2 TV Company of having spread disinformation. The issue is of the Different Accents TV program prepared by Eka Kvesitadze. The TV program spread information as if Urumashvili is unaware the Co-Investment Fund is one of the investors of BitFury company.

Eprem Urumashvili told the Different Accents TV program that he would examine the information and comment on the issue only after its exploration.

“I do not know about this. I will release my statement when I have seen it”, Urumashvili said.

As known, BitFury produces virtual currency, the so-called Bitcoins.

This business is related to the Co-Investment Fund. The company earns 300 000 GEL a day, sometimes more, Eprem Urumashvili said.

Eprem Urumashvili has released statement regarding the Rustavi 2 TV company information: “It is not my habit to make additional comments on my TV statements. However, I am making an exception concerning the plot made by the Different Accents TV program of my favorite Rustavi 2 TV company about BitFury Group company and I am making several necessary explanations: A subsidiary of BitFury Group that owns Mega Datacenter is an enterprise of a free economic zone and

receives electricity udner ordinary commercial tariff without VAT, like all other similar zones (industrial, free economic zone).

If this enterprise were not in similar zone, the company would pay VAT in ordinary regime and would direct it to its assets (i.e. would return the VAT back), because this enterprise carries out service exports.

This signifies in this case the budget loses nothing and consequently, BitFury Group enjoys no preferences!

I promised Mrs. Eka Kvesitadze and I have read the WWW.WSJ.COM article and gave my response letter the next day, where I explained and confirmed that the Co-Investment Fund has taken part in the third stage, but it has not taken part in the company portfolio formation!

Consequently, it is not founder of BitFury Group. Regretfully, the TV program author told me that the plot has been already prepared and we could express our position.

I hope I will have the opportunity to explain my position in the next TV program.

Finally: BitFury Group is an only major investor in Georgia’s IT sector and it scrupulously follows the Georgian legislation!!!

P.S. I hope the attitude to investors will change in our country soon and the future of our country will not be sacrificed to “the determined political agenda” – Eprem Urumashvili writes on his own Facebook page.

WORLD NEWS

May 16, 2016 #145

13

Quotes

“ The capacities of TANAP and TAP pipelines will make it possible to export the gas of Absheron field as well

Developed countries and advanced developing countries must open their markets for products from the developing world, and support in developing their export and import capacity

”

The beermaker also continued a costcutting drive by announcing a shift of 300 back-office jobs to India.

Anna Lindh

Azerbaijan can export gas from Absheron field to Europe

I

t will be possible to export the gas of Azerbaijan’s Absheron field to Europe via the Southern Gas Corridor, says Azerbaijan’s Deputy Energy Minister Natig Abbasov.

He made the remarks during a meeting with representatives of the Movement of the Enterprises of France (MEDEF) in Baku, read a message from Azerbaijan’s Energy Ministry.

“The capacities of TANAP and TAP pipelines will make it possible to export the gas of Absheron field as well,” said Abbasov.

During the meeting, vice-president of France’s Total company for Azerbaijan, Kazakhstan and Tajikistan Thierry Darrigrand noted that the company needs support in selling the gas to be produced at Azerbaijan’s Absheron field.

The first volumes of gas from Absheron gas and condensate field is expected to be received in late 2021 and early 2022, according to the forecasts.

The final investment decision on the project will be adopted in the fourth quarter of 2017, while the first

well at the field is expected to be drilled in the third quarter of 2019.

The discovery of Absheron field was announced in 2011. The reserve of Absheron field is estimated at 350 billion cubic meters of gas and 45 million tons of condensate, according to SOCAR geologists.

Shareholders of Absheron project are: SOCAR - 40 percent, Total 40 percent and Engie - 20 percent.

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian Sea region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and Trans-Adriatic Pipeline.

Competitive Fare to be Introduced on Trans-Caspian International Route

A

single competitive rate will be introduced in the framework of the of TransCaspian international transport route project from June 1, 2016. The Trans-Caspian international transport route (TITR), which is designed to provide transport connections between the East and West of Eurasia, will enable the countries to reduce the costs of international cargo transportation. The delegations from Azerbaijan, Kazakhstan, Georgia and Ukraine attended the recent meeting of the TITR members, which mulled further actions to increase the efficiency of the route.

Nadir Azmammadov, spokesman for the Azerbaijan Railways, said that the major topic of discussion was the

application of competitive tariffs for the TITR and the internal rules for container transportation on the Dostyk/ Altyngel-Aktau-Baku (Alyat)-Batumi route. “We also talked about the work plan of the route,” he added.

The meeting ended with signing a protocol which provides the application of the competitive preferential tariffs on the Trans-Caspian route from China and Central Asia via the Black Sea and Ukraine to Europe.

The Azerbaijani delegation included Igbal Huseynov, Deputy Chairman of Azerbaijan Railways, Azad Gasimov, director of ADY Express, Farhad Guliyev, Deputy Chairman of Azerbaijan Caspian shipping company and Vahid Aliyev, Deputy Director of the Baku international sea trade port.

Apple is no Carlsberg Sales Fall Flat longer the as Brewer Cautions on world’s most Russia, Asia valuable company Apple is no longer the most valuable company in the world.

As the iPhone-maker’s share price dropped Thursday, Google’s parent company, Alphabet, now has a higher market cap.

Apple’s market capitalization is down to $493 billion, while Alphabet’s current market cap is$498 billion, both via Yahoo Finance.

Apple’s stock was down Thursday morning on reports of a drop in iPhone-chip shipments. This was the first time that Apple had fallen to $90 a share since June 2014.

Maker of Turkish jet wins contracts for NASA’s Mars 2020 rover The space unit of U.S.-based Sierra Nevada Corporation (SNC) has won multiple contracts by NASA’s Jet Propulsion Laboratory to build critical hardware for NASA’s Mars 2020 rover. SNC, owned by billionaire Turkish businessman Fatih Ozmen, has been holding contract negotiations with the Turkish government to build Turkey’s indigenous regional jet with dual military and civilian use.

The latest NASA contracts marked the 13th time SNC will be supplying hardware for a mission to Mars.

SNC’s Space Systems division will design and manufacture the descent brake and actuators for the robotic arm and sample caching system. Earlier, SNC built the braking system for NASA’s Mars Science Laboratory rover Curiosity in 2012.

“SNC has been supporting NASA’s Mars Exploration Programs and missions since 1992, though the delivery of highly reliable and complex systems,” said Mark Sirangelo, vice president of SNC’s Space Systems division, in a press release. “We are proud of our long and successful history of delivering mission-critical hardware for some of the most challenging interplanetary missions.”

C

arlsberg A/S, the maker of Tuborg beer, reported first-quarter sales that disappointed investors as it offered a gloomier outlook for eastern Europe and Asia.

Beer volumes fell 2 percent, missing analysts’ estimates, as declines in Asia and western Europe offset a temporary rebound in its troubled Russian unit, the world’s fourth-largest brewer said in a statement Wednesday.

Carlsberg maintained its full-year profit forecast but that wasn’t enough to buoy the shares, which declined as much as 3.5 percent in Copenhagen, the most in almost three months.

The company’s 20 percent growth rate in eastern Europe is “unsustainable,” as it was boosted by an easy comparison with the same period a year ago, Chief Executive Officer Cees ’t Hart said on a call with reporters.

“The CEO’s comments about the current Russian pricing environment were quite cautious,” Eddy

Hargreaves, an analyst at Canaccord Genuity, said by e-mail.

Revenue growth in eastern Europe was double what analysts estimated, as volume rebounded in Russia after Carlsberg lowered the price of its namesake lager.

The beermaker also continued a cost-cutting drive by announcing a shift of 300 back-office jobs to India. The quantity of beer sold in Asia, which Carlsberg has touted as a profit driver, could decelerate, Christopher Warmoth, the company’s new head of strategy and a former regional director for Asia, said in an interview.

Twelve out of 15 divisions are spending less than their target budget, the company said, with further brewery closures planned in China. Beer volumes declined 1 percent in Asia, hurt by a decelerating market.

The shares fell 3.2 percent to 617.5 kroner at 11:46 a.m. in the Danish capital, trimming their gain this year to 0.9 percent.

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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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