Caucasus Business Week #211 by Caucasian Business Week

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October 9, 2017 #211

October 9, 2017, Issue 211 - www.cbw.ge

Healthcare International Dermatologic Clinic Kani CSR Campaigns Against Several Diseases Pg. 9

Company Colliers International Georgia’s New Oﬃce at King David Business Center Pg. 11

Wine “Saperavi World Prize 2017” - Why is it good for Georgia? Pg. 6

National Bank Lobbying Commercial Banks Several days ago National Bank of Georgia (NBG) released a special statement promulgating that corporate bonds are not insured by either Government or NBG guarantees. Therefore, NBG warns the population to show caution when purchasing bonds. Issuance of corporate bonds started in 2014 and several companies have already issued similar securities. Therefore, the field specialists stage serious criticism over the mentioned statement. At this stage, corporate bonds have been issued by M2, JSC Nikora, Silknet and so on. Corporate bonds are not insured by either government or NBG guarantees. Payment of the principal amount of an investment and interest rate depends on a company solvency. Moreover, financial instrument may lose market value partly or fully.

Banking Sector and Securities Market as Competitors

Pg. 4

Challenges of Digital Monetary Policy

Pg. 7

2 GOVERNMENT

NEWSROOM Gov’t Predicts Further Economic Growth in 2018 Tthe government expects 4,5% economic growth. Fiscal and macroeconomic indicators for the next year are planned by conservative approach, and by 2018 real growth of GDP will be 4.5% and the GDP deflator forecast - 3.5%.

Investments in Fixed Assets of Agriculture Sector Doubles According to information by Ministry of Agriculture, investments in fixed assets of agriculture sector considerably increased in 2016 and made up 180mln GEL, up from 80mln GEL in 2015 and up from 110mln GEL in 2014.

ECONOMY

Tourism Growth Achieved 28.8% in Georgia The country was visited by 5.822 billion international visitors through 9 months. The number of those entities has been increased who stayed in Georgia for 24 hours and more.

Georgia’s annual inflation rate posts 6.2% increase Meanwhile, in September 2017 the monthly inflation rate amounted to 0.7 percent. Last month prices for food and nonalcoholic beverages increased 1.2 percent and contributed 0.36 percentage points to the overall Consumer Price Index change.

BANKING

VTB Bank Increased Landing and Profitability VTB Bank increased landing up to 942 million GEL, +2% through July-August. Bank’s profitability is grown as well. As of September 1, 15.4% is Return on Equity (ROE), while Return on Asset (ROA) is 1.68%.

Commercial Banks Invest 30mln GEL in Short-term State Securities A total of 8 commercial banks took part in 1-year T-bill auction of Ministry of Finance. The demand constituted 88mln GEL, three times more compared to the supply.

BUSINESS

Al-Bawani Group Expresses Willingness to Invest 100 mln in the Partnership Fund’s Projects Al-Bawani Group is the first class building company in Saudi Arabia, which operates in Saudi Arabia, the United Arab Emirates, Turkey, Great Britain and China.

Turkmenistan Expands Trading Ties with Georgia According to the message, “Turkmenistan” store with a wide range of textile products, carpets and rugs, souvenirs, was opened in the shopping mall. Among the topical areas of cooperation the sides stressed energy and transport.

COMPANY

KTW Opened a Brand Store in Keda According to the company, products of Keda wine enterprise and KTW will be presented in the attractive environment for tourists.

October 9, 2017 #211

“Georgia is an island of democracy and stability” A delegation of Italian businessmen is visiting Tbilisi. The delegation is led by Ivan Scalfarotto, Deputy Minister of Economic Development of Italy. As part of the mentioned visit, Iota hotel hosted Georgia-Italy business forum. Economy Minister Giorgi Gakharia and Mr. Scalfarotto delivered a welcome speech at the Forum. This forum is of crucial importance for enhancement of Georgia-Italy relations, Giorgi Gakharia noted. “Italian party makes emphasis on agriculture, infrastructural projects, production, all the directions in which Italian exports keeps strong positions. On the other hand, we are interested in cooperation and absorbing the knowledge that Italian companies have accumulated, especially in terms

of exports enhancement. We believe we will have specific results”, Giorgi Gakharia said. Georgia’s free trade regimes with EU and China create attractive platform for colleagues and businessmen to make Georgia a specific platform-hub for development of production and trade, Giorgi Gakharia noted. Deputy Economy Minister of Italy Ivan Scalfarotto has also talked about enhancement of bilateral relations. The companies participating in the forum possess huge potential to cooperate with Georgian party and Georgian market is very interesting for us, taking into account all international indicators. The Italian delegation consists of about 30 representatives from infrastructure, power sector, agriculture, telecommu-

nications and tourism fields. Total turnover of these represented companies hits 100bln EUR. Michele Scannavini, president of Foreign Trade of Italy, has also taken part in the Forum, as well as Bruno Balvanera, ERBD regional director, IFC regional manager Jan van Bilsen and ADB representative in Georgia Ieshim ElhamKailari. According to Ministry of Economy, the Tbilisi Forum is an extension of the ItalyGeorgia business forum that was held in Rome in March 2017, where about 260 Italian and Georgian companies took part. The Georgian delegation was led by Prime Minister Giorgi Kvirikashvili. In Rome the parties decided to organize the visit of Italian businessmen to Tbilisi.

PASHA Bank Partners the First CEO Lunch Tbilisi by Caspian Energy On September 29th Caspian European Club and Caspian American Club hosted the first CEO Lunch Tbilisi within the framework of the oﬃcial ceremony marking the resumption of activities of Caspian Energy Georgia. The event involves organization of a series of meetings for CEOs of Georgia and Azerbaijani companies and is supported by PASHA Bank. Prime Minister of Georgia Giorgi Kvirikashvili, First Vice Prime Minister, Minister of Finance of Georgia Dimitry Kumsishvili, Minister of Economy and Sustainable Development of Georgia Giorgi Gakharia and Ambassador Extraordinary and Plenipotentiary of the Republic of Azerbaijan to Georgia Dursun Hasanov attended CEO Lunch as honorary guests. Shahin Mammadov, Chairman of the Board of Directors and Chief Executive Oﬃcer of PASHA Bank Georgia gave a presentation about the Bank’s activities and its financial highlights. He emphasized the significance of the project in regards of bringing together business circles from these two countries. Mr. Giorgi Kvirikash-

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 1 Director: Levan Beglarishvili Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

vili awarded PASHA Bank Georgia with a special certificate for joining and supporting the event that will serve the development of Georgia-Azerbaijan trade and economic ties. The Prime Minister of Georgia also thanked the organizers of the meeting. “This will boost a birth of new business initiatives, expand contacts not only between businessmen of Georgia and Azerbaijan, but also representatives of other countries”, he said. Also Giorgi Kvirikashvili noted that the Government of Georgia spares no eﬀort to facilitate attraction of investments into the country and Georgia is always open for Azerbaijani en-

trepreneurs. “I expect the Georgian businessmen to expand their activities in Azerbaijan”, the Prime Minister said. According to First Deputy Chairman and Chief Executive Oﬃcer of the Caspian European Club and Caspian American Club, Telman Aliyev, CEO Lunch is a very beneficial tool for networking and is hosted with the aim to create opportunities for CEOs to communicate in an informal environment and establish new contacts. The next CEO Lunch Tbilisi is scheduled for October 27, 2017. The following meetings will be held on last Fridays of every month.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili Technical Assistant: Giorgi Kheladze;

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

October 9, 2017 #211

PUBLICITY

ECONO-MIX

National Bank Lobbying Commercial Banks

Rati Abuladze Doctor Of Economics

National Bank Hinders Development of Securities Market

Challenges of Digital Monetary Policy

‘‘

Merab Janiashvili Economic Analyst

However, existing gaps in statistics do not give precise picture and consequently due policy is not carried out. According to current conditions, 80% of population belong to poor class, due to ranking of their revenues. For economic and democratic development of the country, it is necessary that a major part of the society constitute middle class.

everal days ago National Bank of Georgia (NBG) released a special statement promulgating that corporate bonds are not insured by either Government or NBG guarantees. Therefore, NBG warns the population to show caution when purchasing bonds. Issuance of corporate bonds started in 2014 and several companies have already issued similar securities. Therefore, the field specialists stage serious criticism over the mentioned statement. At this stage, corporate bonds have been issued by M2, JSC Nikora, Silknet and so on. Corporate bonds are not insured by either government or NBG guarantees. Payment of the principal amount of an investment and interest rate depends on a company solvency. Moreover, financial instrument may lose market value partly or fully. Therefore, making investments in similar instruments is related to personal risks of investors and such decisions require corresponding caution and analysis», NBG statement reads. Attracting financial resources through issuance of corporate bonds is a new instrument for Georgia-based major companies. There are many reasons for such a situation and the role of regulatory bodies is one of them, namely, their policy towards the capital market development. Economic expert Akaki Chargeishvili says that the NBG statement hampers securities market development and the head of the parliament’s finance and budgeting committee was to react to the mentioned statement, which contains two inaccuracies: 1) NBG talks that corporate bonds are not insured by the Government and 2) the bonds are not guaranteed by NBG either. Similar interpretations aim at misinforming the society on behalf of financial interests of commercial banks on the free market. «In reality, in the market environment, free economy, when private companies use one of the free market instruments, be it a privileged share or bond, this signifies that everything depends on the company’s private obligation. It is not correct when the regulator tells the consumer in advance that these securities are not guaranteed by either government or the national bank. This signifies that interested bodies should not buy similar bonds at all and the securities market will not be developed», Chargeishvili said. NBG should be called to account for this statement. Today, banking monopoly has occupied the Authorities and parliamentary control does not exist either, he said. The NBG statement was also criticized by Gogi Loladze, founder of Caucasus Capital brokerage company and the former head of the stock exchange supervisory board. Each word in the statement complies with the legislation, however, the fact is that intensification of similar statements raises many questions, even more so we have not heard similar warnings for commercial banks’ depositors, Loladze said. «We have market economy and a company is responsible for any obligation they take. The information that is required for public oﬀer should be supplied to a wide society in line with the legislation – through an issuance prospectus. NBG proves an issuance of prospectus and its correspondence to the legislation. Therefore, content of this statement is correct, however, NBG is, first of all, to regulate commercial banks and we have not heard the same warnings for millions of depositors. Nobody has said that deposits (at commercial banks) are not insured by the Government and NBG», Loladze noted and pointed to the asymmetric position that NBG demonstrates in relation to various sectors of financial field.

‘‘

Digital currency makes influence on global monetary system, which has been developed by private and civil bodies. Digital currency is considered as an asset stored in electronic form that performs the same function as the physical currency. Digital currency comprises cryptocurrency shaped in the form of digital record (Bitcoin, Litecoin, Dogecoin, Peercoin) and virtual currency (Linden Dollars, WoW Gold). They differ from each other due to issuers and functions (dbc.wroc.pl). Cryptocurrency as a digital monetary system is managed by P2P network and is protected by a powerful code. It may be relocated to any global location. Network transactions are carried out and checked immediately. It should be noted that the financial ecosystem remains always open. It is decentralized. No central body bears responsibility and supervises it or interferes in private transactions (globalfxm). It should be noted that the cryptocurrency liquidity (for example Bitcoin) has changed mechanisms for wealth collection. Therefore, cryptocurrency has widely spread thanks to its convenience, quick transaction, fashion tendency, operational and confidentiality characteristics. Digital money illustrates the essence of money-credit policy that is focused on money flexibility. Amid global tendencies, central banks examine opportunities of issuing sovereign digital currency (Canada, European Central Bank), People’s Bank of China carries out experiments for technical specifications. Bank of England carries out research works for many years. Commerce Bank of Switzerland (UBS) plans to implement digital currency project jointly with 6 major commercial banks (Barclays, CIBC, Credit Suisse, HSBC, MUFG and State Street). The issuance is planned in 2018. centralbanking). The world’s major banks have taken first steps for moving to blockchain system (to the direction of Bitcoin). According to forecasts, for the coming 10 years, the ratio of Blockchain in global GDP will be 10%. The research works prove that the market of cryptocurrency continues growing after a 25% downfall. According to reports by research organizations, more than 1106 cryptocurrencies are recorded worldwide and their market capitalization makes up 159.8bln USD. Along with global processes, both private and civil societies have been also shaped in Georgia for use of digital money. Digital money (namely, Bitcoin) enables to trade, exchange, store, collect products and invest in investments instruments attached to Bitcoin price. It should be noted that digital monetary system does not have stable and state-dominated monetary hierarchy. However, its advantage is diverse and among them we should note (oecd): • Assessment of money aggregates and money turnover speed in economy; • Transparency; • Checking a huge volume of transactions in everyday regime in real time in confidential environment. • Supervision over money aggregates, efficiency of policy of correction for macroeconomic purposes; The research works prove that amid spread of digital money, key challenges are as follows: • fixation of nominal expression, universal attainability; • its recognition as a legal payment method for all public transactions (WEF, 2017). • Growth in central bank’s efficiency, fulfillment of base functions; • Efficiency of digital money as an exchange instrument, safety of its storage, stability of its value in economic and financial operations (voxeu); • Weakening potential of macroeconomic instruments; problem with management (taking necessary decisions and implementation) on global level; It should be noted that today a huge volume of money generates real challenges in the world. The fact is that the global market capitalization of Bitcoin is an important part of money mass. Therefore, there are more questions than answers to the issues such as: volume of money in turnover and efficiency of huge money mass. Whether it makes influence on inflation level, stability of prices (bis.org); Based on summary of issues, we can note that in the field of digital currency and payment technologies, amid quick paces of innovations, Government should take active steps to get prepared for global digital challenges. The current global developments show that digital money cannot make influence on national monetary system, but in long-term perspective the inactive position of our central bank may raise certain risks. To ensure healthy and valuable environment for the future challenges, National Bank of Georgia (NBG) should take the following steps in digital monetary field: • Conduct research works; • Arrange legislative environment; • Arrange rules and standards for shaping digital monetary system; • Shape a system of values that will consider a digital money as a part of money-credit and currency policy.

October 9, 2017 #211

«Discriminating attitude is demonstrated towards the securities market and this is a big error. Today, there are only several hundreds of citizens interested in purchasing bonds, while we have millions of depositors in the country, while statements are directed towards those potential or active investors, who have applied diﬀerent mechanism – securities market. Therefore, this fact raises a lot of questions», Loladze noted and explained that the banking sector and securities market are competitor fields as two alternative sources for attracting financial resources to the business. Therefore, the logics is that the banking sector is not interested in securities market development. Georgia’s main stock exchange infrastructure entirely belongs to the banking system and the field cannot be developed, when it is controlled by the competitor sector, he pointed out. The Caucasus Capital founder also talks about legislative gaps, but notes that today only the banking sector representatives are prioritized and the so-called strategy approved by NBG and Government are designed for development of only the banking sector instruments. «First of all, we should note that the securities regulator is subjected to the National Bank, while NBG regulates almost the whole finance sector. Small market players are exceptions and NBG avoids the responsibility to control them. At the same time, NBG carries out active control and issues corresponding resolutions for the securities market regulation to hamper a development of the banking sector’s competitor. All these tendencies are expressed in a lot of samples, including, over the past period NBG has released several statements to urge population to abstain from buying corporate bonds, under the pretext they are not insured by either Government or NBG. Similar statements signify that NBG and the Government are not interested in the securities market development. However, investors know very well that unlike state securities, corporate bonds bear high risks and when the regulator urges the investor to abstain from purchasing similar securities, this signifies the corporate securities market development is artificially hindered. Therefore, it is surprising how the Government plans to reform the capital market, when, to this end, it is of fundamental importance to raise the interest of as many investors as possible so as they buy shares of successful Georgian companies or issue shares at the Georgian stock exchange themselves», Shota Gulbani, president of Association of Young Financiers and Businessmen (AYFB) noted. Over the past period, only several issuances were carried out on Georgian corporate bonds market, mostly by BGEO Group companies. Successful placement of these bonds is carried out by JSC Galt&Taggart, a 100% subsidiary of Bank of Georgia holding company (BGEO). Nikora Trade is an exception that is not related to major banking group. Note that Galt&Taggart owns about 90% ratio of brokerage market on the Georgian stock exchange and almost all major placements at the stock exchange is carried out by this company. Today, only one brokerage company operates in Georgia that is not a subsidiary of any commercial bank. This signifies that commercial banks control all alternative sources for attracting capital. Therefore, similar situation cannot ensure competitive environment, while the Government has promulgated to develop the capital market. And in this situation NBG releases negative statements around corporate bonds. As a result, the capital market development is frustrated.

“To tell you the truth, you have exceeded expectations. Cultural diversity, astonishing people and a wonderful city really makes the wish to take another step. We have found a lot of opportunities for cooperation during the meetings with the Prime Minister of Georgia, Ministers of Infrastructure and Economics and Funds”.

Fakher Al Shawaf CEO of Saudi Arabia’s largest group Al-Bawani

October 9, 2017 #211

PUBLICITY

WINE

October 9, 2017 #211

“SAPERAVI WORLD PRIZE 2017” Why is it good for Georgia? Soon Tbilisi will host “Saperavi World Prize” – the first Georgian wine contest for foreign winemakers. Saperavi wines produced around the globe (even in far-away Australia and News Zealand) are being shipped to Georgia, where they are to be judged by country’s best winemaking experts. Caucasian Business Week is among oﬃcial media partners of Saperavi World Prize (“SapPrize”). We have received questions from readers about this new event, and contacted the organizers for answers. Inge Olsson of Georgian wine news is manager of Saperavi World Prize. He kindly agreed to answer our questions.

- These Saperavi wines are produced abroad. Why are they important for Georgia? - Saperavi is the most famous Georgian variety. In Georgia it’s a legend, but in many countries it is not known. If we want Georgia to sell its products at global market, we must use all opportunities to promote everything Georgian, and of course Saperavi. The winemakers who produce Saperavi wines in USA or New Zealand are doing a very good job for Georgia. And Georgia must not only show its appreciation, but stimulate a wider use of Saperavi in the world. The words “Saperavi” and “Georgia” must be heard often, to become familiar to international consumers. In result, more people will buy Georgian products. So, Georgian producers will gain direct benefits. - What other benefits or advantages are there for Georgia in this project? Georgia will establish itself as main authority in this sector of winemaking, it will act as consultant to everybody interested in Georgian wine varieties and technologies (for example, qvevri technology). Georgia must position itself as a “hub”, encouraging people to come here, seek information here, apply to Georgians for expertise, etc. Georgia is one of the most ancient centers of winemaking, but this will remain just a phrase, if we do not install motivational mechanisms. Saperavi World Prize is one of such mechanisms. It can be followed by master-classes, or other educational projects.

- Can Saperavi World Prize be used to advertise Georgian products? Yes, Saperavi World Prize is an eﬃcient advertising platform for all companies who seek international exposure. And not just for winemaking companies – SapPrize is a useful resource for attracting attention to all brands, for instance to real estate companies, hotels, tour agencies, even to startups… - So, Georgian wine brands can be promoted at Saperavi World Prize? Yes, Georgian wineries are welcome to use this opportunity. Because the Georgian winemakers are out of competition, they are free to use it for advertising, as sponsors. Gold and Diamond sponsors will place their logos on information materials, website, merchandise, and during the winners announcement ceremony. It’s actually good for the Georgian wine brands that they are not competing in SapPrize – otherwise they could not use it for advertising and marketing. - But why Georgian wines are not allowed to compete in “Saperavi World Prize”? Is this fair? Answer is simple. Wineries who make Saperavi are still very rare in the world – perhaps several dozens only. In Georgia we have several hundred wineries, and practically all use Saperavi variety to produce thousands of diﬀerent wines (including Mukuzani, Napareuli, Kindzmarauli, etc.) Remember, participation in our contest is free – there is no registration fee. So if the contest was

open to Georgian wines, we would get hundreds of samples from Georgia, and just several dozens from abroad. Georgia would outnumber foreign participants, and their chance of winning would be close to zero. No doubt, the foreign wineries would lose interest in such competition. Next year they would not enter, so the Georgian wines would compete between themselves. Since national contests already exist in Georgia, another such contest would be useless. - Who is supporting your project? SapPrize is thankful to our patrons - National Wine Agency (Ministry of Agriculture), International Chamber of Commerce, Revenue Service (Ministry of Finance), Ministry of Foreign Aﬀairs, National Intellectual Property Center “Sakpatenti”. - How can you guarantee that sponsors of your event will get good visibility and promotion? World’s leading news agencies, for example AFP (Agence France Presse), have confirmed they would cover Saperavi World Prize, in addition to Georgian television and newspapers. That means global publication and global attention. In addition, SapPrize has several media partners, and our own Hvino News media network with readers in 160 countries and over 1,5 million visits. For international media’s attention it is also very important what the world’s top experts say about our event. Gerard Basset – World’s Best Sommelier and Oﬃcer of the Order of the British

Empire – said “It is really wonderful that there is now a special event for Saperavi” and wished us success. On our official site there are many more quotes about SapPrize by Masters of Wine from USA, France, Britain, Hong Kong… - Is it difficult to place a brand’s logo at Saperavi World Prize main page? We soon will finalize this year’s list of sponsors, and place all the logos. The sponsorship packages are flexible, so can fit in any company’s budget. The first step is to contact us through official website http://sapprize.hvino.com. Our decision-making is quick and friendly. All who want to support SapPrize is welcome, but time is short!

October 9, 2017 #211

Banking Sector and Securities Market as Competitors National Bank of Georgia (NBG) warns Georgian citizens that corporate bonds are not insured by either government or NBG guarantees. According to NBG, the website http://ubani.ge/ has spread a securities oﬀer with erroneous and misleading information that does not comply with Georgian legislation requirements for securities market. We remind you that: 1. Neither National Bank nor any other oﬃce carries out securities certification or its evaluation in any other form; 2. NBG only adjusts the prospectus form to the legislation requirements and does not bear responsibility for its content. The law sets the same requirements. Namely, the frontpage of the final prospect must depict the following words: prospectus issuance approval by NBG refers to the form of a prospectus and it should not be considered as a conclusion about its correctness or value of investments described here. 3. NBG neither insures any risks for issuers nor determines the nominal value; 4. The securities indicated in the above-mentioned statement, according to the issuance prospectus, is an uninsured obligation.

ccording to the Georgian Law on Securities Market, the issuer must submit a final prospectus of approved issuance to a potential investor, not other documents. Moreover, according to the Georgian Law on Advertising,when spreading Advertisement on securities, it is inadmissible to spread any other information than the mentioned information in the issuance prospectus. For the purpose of correcting gaps and updating investors, NBG will act within legal frameworks. We remind you that corporate bonds are not insured by government or NBG guarantees. Payment of the principal amount of an investment and interest rate depends on a company solvency. Moreover, financial instrument may lose market value partly or fully. Therefore, making investments in similar instruments is related to personal risks of investors and such decisions require corresponding caution and analysis», NBG explains. As reported, issuance of corporate bonds started in 2014. Some companies have already issued similar securities in the country. Therefore, specialists sharply criticize similar statements. At this stage, corporate bonds have been already issued by M2, JSC Nikora, Silknet and so on. The Caucasus Business Week (CBW) has inquired who a responsible body is and what guarantees exist for buying bonds of a specific company and whether consumer are protected. Economic expert Akaki Chargeishvili noted that this statement by NBG hinder securities market development and the head of the parliament’s finance and budget committee was to make reaction to this statement. The NBG statement contains two inaccuracies. 1) NBG talks that corporate bonds are not insured by the Government and 2) corporate bonds are not insured by NBG either, Akaki Chargeishvili said. This is an erroneous explanation that serve the interests of commercial banks on the free market, he added. «In reality, in the market environment, free economy, when private companies use one of the free market instruments, be it a privileged share or bond, this signifies that everything depends on the company’s private obligation. It is not correct when the regulator tells the consumer in advance that these securities are not guaranteed by either government or the national bank. This signifies that interested bodies should not by similar bonds at all and the securities market will not be developed», Chargeishvili said. NBG should be called to account for this statement. Today, banking monopoly has occupied the Authorities and parliamentary control does not exist either, he said. «The parliament’s finance and budgeting committee has not made even one statement. This committee is to raise the issue of responsibility of NBG, because it is to control the regulator. Nor other state oﬃces have made reaction. NBG had no right to make direct hinting to the population», Chargeishvili said. The securities market is self-regulated, in itself. This signifies that the financial infrastructure should be regulated in a guaranteed way by the law-determined supervisory body, in our case, by NBG. First of all, NBG should set securities market requirements. Secondly, it should act as a regulator, issue regulating norms and carry out supervision, but NBG does not take these steps, Chargeishvili noted. «In this case NBG was to inform that there are corporate bonds of private company. This is regulated by the law», Chargeishvili said. Securities market always bear certain risks, but they are especially high in Georgia. NBG does not apply due leverages and instruments to ensure the securities market development. In this case the regulator makes such warnings that shapes negative climate for those, who are interested in purchasing similar bonds. «NBG should say that it has created instruments, shaped market conditions, minimized falsification risks through its own regulations. However, NBG does not talk about this, but it says bonds are not insured by guarantees and similar statements shape negative environment», Chargeishvili said. In response to the question, whether bodies interested in corporate bonds are protected, Chargeishvili noted that in this case

citizens are protected by the legislation. Any action on the market is related to risks, in general, he added. Gogi Loladze, founder of Caucasus Capital brokerage company and the former chairman of the Stock Exchange supervisory board, noted that similar statements make negative influence on the undeveloped securities market, disorient citizens and shape negative background. Each word in the NBG statement satisfies legal frameworks, but the fact is that spreading similar statements so frequently raises certain questions, even more so we have not heard similar statements in relation to depositors of commercial banks, Givi Loladze noted. «We have market economy and a company is responsible for any obligation they take. The information that is required for public oﬀer should be supplied to a wide society in line with the legislation – through an issuance prospectus. NBG proves an issuance of prospectus and its correspondence to the legislation. Therefore, content of this statement is correct, however, NBG is, first of all, to regulate commercial banks and we have not heard the same warnings for millions of depositors. Nobody has said that deposits (at commercial banks) are not insured by the Government and NBG», Loladze noted and pointed to the asymmetric position that NBG demonstrates in relation to various sectors of financial field. «Discriminating attitude is demonstrated towards the securities market and this is a big error. Today, there are only several hundreds of citizens interested in purchasing bonds, while we have millions of depositors in the country, while statements are directed towards those potential or active investors, who have applied diﬀerent mechanism – securities market. Therefore, this fact raises a lot of questions», Loladze noted. Today we have banking system in Georgia and the Authorities do not pay due attention to securities market development. They make empty statements on capital market development, but the process does not advance, he said. The banking sector and securities market are competitor fields as two alternative sources for attracting financial resources to the business. Therefore, the logics is that the banking sector is not interested in securities market development. «It is frequently said that commercial banks have assisted business companies in issuing bonds. In reality, all these instruments belong to the banking sector. These securities are not liquid secu-

rities in its classical understanding. The nominal value of bonds is so high that we receive absurd situation - 107 million GEL bonds of EBRD. The price of one bond is 1 million GEL. And where is there securities market here?! Under real liquid instrument, the nominal value should be 50, 100, 500 GEL, while today the cheapest bond is worth 1000 GEL or USD. The lower the price, the more attainable bonds are for population, while today we have a form of loan. It look like securities in appearance, but this is a classical form of a loan that are bought by commercial banks», Loladze said. Georgia’s main stock exchange infrastructure is wholly owned by the banking system and it is unimaginable that the stock exchange will be developed, when it is controlled by the competitor sector, he pointed out. The Caucasus Capital founder also talks about legislative gaps, but notes that today only the banking sector representatives are prioritized and the so-called strategy approved by NBG and Government are designed for development of only the banking sector instruments. Shota Gulbani, president of Association of Young Financiers and Businessmen (AYFB) explains that the Government does not try to diversify financial system and the strategy proves this consideration, because it does not ensure equal opportunities for those institutions, which are not affiliated with commercial banks. «It is important that ownership of the stock exchange be represented wider. This signifies reformation of the current environment on the stock exchange will bring more benefits, because today one brokerage company affiliated with a specific commercial bank maintains dominating control on the whole industry of the stock exchange (Galt&Taggart as noted above). This move will grow the interest of other brokerage companies in building the stock exchange as an institution. It is also important that brokerage companies, which are members of the stock exchange, but are not affiliated with commercial banks, have adequate representatives at Georgian Stock Exchange (GSE) supervisory board. The new strategy does not call for protecting the trade centrality principle and improving objective pricing mechanisms, as it was in the securities regulating law before 2007. Moreover, the stock exchange should be entitled to adopt obligatory trading regulations for the stock exchange members, because today offexchange deals are made mainly”, Gulbani said. First corporate bonds issuance started in 2014.

PUBLICITY

October 9, 2017 #211

Clinic “Kani” is leader dermato-venereal clinic in Transcaucasia. The clinic is special among others for its newest German diagnostic equipment for skin and moles, also for its international standards of treatment. Since 2014 clinic is constantly developing and enlarging. At this time branch oﬃces are located in Tbilisi, Batumi, Kutaisi and Marneuli. We had conversation with the head of Marketing department Sandro Bochorishvili and PR manager Nini Dedalamazishviili. They talked about activities that clinic carried out for people’s needs.

INTERVIEW

INTERNATIONAL DERMATOLOGIC CLINIC KANI CSR CAMPAIGNS AGAINST SEVERAL DISEASES Sandro Bochorishvili Social campaign #Take care is realized by initiative of clinic ,,Kani”, which is aimed to take care of people and make them thoughtfull about problems which is caused by sexually transmitted diseases. According to the existing statistics of Georgia in 2015 were recorded 15 000 cases of venereal infections, but we must take into account that aplying to healthcare proffessionals is very low and real number may be more than 1000 000 . Existing data is really alarming because these infections often become a cause of complications such as infertility, erectile dysfunction, deterioration of sexual life and etc. Take care of your, as well as your partner’s health. Many famous people and psychologists have supported “Kani” in raising awareness of previously mentioned social campaign. Different companies have introduced their activities, also more are yet to be introduced. They are going to support necessity of visiting venerologist, which is essential for demographic development. As you know “Kani” has urine DNA (genetical) test for diagnosis, which fully fits newest international standards. Urine test may be done for different infections, which is important for everyone, especially for males, because until this, test was done only by smear and the process was very painful for men. According to everything we talked about, we can frankly say that in Georgia, particularly in clinic the “Kani” international standards of diagnosing and treatment of venereal diseases are kept. Social campaign is actively realized by social networks, besides web-page www.venero-

logia.ge is already functioning, where every volunteer will be able to take part in this activities which is aimed to #take care of each other. Nini Dedalamazishvili Social campaign #forpreventionofskincancer In Georgia there are many risk factors for development of Melanoma (skin cancer): Due to lack of knowledge about risk factosrs and ignorance of preventive measures. Besides, there is very low motivation among people for applying doctors on time. For the first time , on April 30, by initiative of clinic “Kani” and association DODVE ( international association of dermatooncology, dermatology and venerology) worldwide exhibition of moles of famous peoples’ was arranged. By initiative of the clinic from May 1-6 free diagnosis of moles was carried out as well. Volunteer envoys against skin cancer are: Nani Bregvadze, Valerian Shiukashvili, Zura Kipshidze, Kaxa Bakuradze, Nodar Cheishvili, Nikoloz Tsulukidze, Qetevan Qemoklidze, Nanuli Sarajishvili, Aleko Maxaroblishvili. This exhibition is aimed to spread awareness amongst population and significance of mole diagnosis on time. On March 28-31 International conference by Sprimus Egid in Rene, France was held. There were delegates of diﬀerent countries. We took recommendations of other countries for our social campaign #takecare. Sexually transmitted diseases are a big danger, nowadays everybody agrees with the necessity of visiting venerologist. Aim of this social-informative campaign is to make people more aware about the issue. In informal part there was held informative meeting for delegates where they were informed about previously mentioned campaign, also about other services of clinic. Healthcare starts with information, just because of it our team works actively for people to be informed properly. In Tbilisi hotel “Iota” On September 13, year 2017 by the presence of European Union project ,, advocacy of equal capabilities education and employment of persons with limited capabilities” was held conclusive meeting . Oﬃcial part of this meeting was opened by general director of European Union’s neighborhood politics and broadening issues, Christian Denielson. Deputy of healthcare minister also was attended. There was announced that in our future plans is to employ people with limited capabilities. Department of public relations and marketing in medical sphere serves for people to make them more informative , also about taking care of preventive medicine, because timely diagnosis and treatment is guarantee for defeating diseases.

Advertising is a permanent engine of business Mariam Arevadze - Istanbul Reklam Market Manager: Advertising company ‘’Istanbul Reklam Market’’ offers wide range of advertising services. If one needs a real amendment to make business more successful and lucrative – They know it how to achieve the aim at the company. According to company business development manager, Mariam Arevadze, efficiant communication with a customer and sharing right information is a key of success. ‘’It’s hard to imagine modern world without advertising. Good advertising is a permanent engine for business.’’ Our company had established 3 years ago in Georgia. Although, it has 18 years history in Azerbaijan, our Head Office. Customers’ demands change along the years, innovative technologies are being created and advertising market develops. ‘’Istanbul reklam Market’’ follows the changes, although stably maintains its main values – responsibility, quality and individual approach. Our company’s professional team is ready for cooperation. Corporate responsibility • We are ready to cooperate with you and we know how to get desired result according to your will. We don’t serve any other clients during our cooperation with you! We have our partners which tells a lot. Quality •Our company guarantees high quality result. Our business area is beyond the country’s borders – Head Office in competitive environment, such as Azerbaijan, tells you about the reputation of the company. Individual approach • Your business is unique. Our approach – individual. It’s our priority to Create top quality product based on customer’s demands. Why you should choose our company • We are responsible to fulfill the order of our customer on time. • It’s convenient and comfortable to cooperate with us, each customer is very important to us. • ‘’Istanbul Reklam Market’’ is a relaiable partner. We offer authentic, creative decisions. • We are responsible on quality, as well as deadlines. What is the main profile of the company? The main profile of the company is inner and outward advertising full service: *Large-scale printing * Vehicle branding * Billboards * Volume letters * Light boxes * Advertising tabs * Polygraph * Advertising stands * Creating individual design * Flags * Awards * Promo gift items * soft wares branding This is the list of services that can be offered by our team. We propose any kind advertising service and planning PR activities, carrying it out productively, as well as involving in promo actions. Tell us about one of the project implemented by your company. We implemented numerous projects during these years. One of the last one that we carried out recently is ‘’Beko’’s 20th anniversary. We had to furnish the stage for the event, branded the Automobile, designed certificates/ awards and further details. We are glad to be the part of this project and I think we made it properly. We are looking forward to larger projects and challenges along company’s growth daily. Who are your partners? The number of our partners is large, including hundreds of organization. I would emphasize: Macro Construction (Belissa), Beko, NK, Flo, Polaris, Hilt, Henkel and some more large segment company or store. The list increases every day as our service range is big. Remember the largest project for your company when you were taking a start. It was in 2014, March, Lightened letters and light boxes for LTD Castel Georgia, after what the number of our projects increased day by day. Do you have an enterprise, what kind of supplies do you save there? Of course, our company owns an enterprise where we prepare every service, we have printing machines, plotter, CNC Router service, and company has its own installer, which complete an order on time. What are your future plans? We are planning to participate in large projects and plan innovations, which I can share later. We are going to add promo company, that means following: planning promo actions, promo girls service and helping implementing it successfully. Our motto is: Istanbul Reklam Market, a place where your dreams will come true. Contact us : f: irm.ge www.irm.ge 592703434 Didi Dighomi, Davaris 15A.

BUSINESS

October 9, 2017 #211

Silknet has Introduced Additional Service for its Subscribers – Credit

New, Personalized Mobile Platform – VEON Submission for Startups

The new service enables the company subscribers to have continuous access to Silknet internet, telephone and television services. To activate the suspended service for 3, 7, 15 or 30 days, there are several ways: interested bodies are able to contact the hotline, pass identification process and get switched to the desirable period of Credit. The subscribers are able to restore the service by sending a message from the contact number registered in the Silknet database to the special number 90 001. Moreover, subscribers are ale to apply Credit service by filling out an application at a service center. Subscribers are also able to activate Credit within 30 days after service restriction day. Activation of the service for 3 days – 1.50 GEL; 7 days – 2 GEL; 15 days – 3.5 GEL, 30 days – 4 GEL.

VEON presented a new mobile platform to startups and digital society at Technopark, on October 2. VEON is a digital ecosystem that combines everything that is in the interest of a modern Internet user: chat, internet calls, popular content, personal cabinet, exclusive oﬀers of local and international partners. VEON was introduced by Gabriel Jordan, the Head of Product Development of the team. ”Modern world is being developed and everyone should integrate with a new environment. We created a new application by available internet and combining existing services around, VEON- the primary value of which is a total freedom. VEON is an open platform for any business, among them are startups, for which it will be the best way to start cooperation and get an access to millions of local users, as well as international market,”- says Gabriel Jordan, the Head of Product Development of VEON.

Use Terrabank’s Modernized Internet Banking Ebanking.ge – Terrabank clients know this website very well, however, starting today visitors of Ebanking.ge will see entirely different design, functions and offers. After branches, Terrabank has also renovated its internet banking and introduced new offers for its clients. Starting today, physical bodies are able to use any banking service in distance regime thanks to renovated interface and system: money transfers, payment for public utilities, bank assets and permanent control of liabilities – renovated internet banking of the financial house will enable you to feel cozy and comfortably in Internet space too. Use high-level, fast and efficient banking service and ask question related to finances. Your distance financial housese of Ebanking.ge is waiting for your first visit.

Kazakh Companies to Involve in Infrastructure Projects of Georgia The Prime Minister of Georgia Giorgi Kvirikashvili and the Minister of Investment and Development of the Republic of Kazakhstan, Jenise Kassembek, discussed the economic and trading cooperation between Georgia and Kazakhstan, the ongoing infrastructural projects in the country and the economic situation in the region. The sides positively evaluated dynamics in the direction of trade-economic cooperation and expressed readiness to further deepen existing connection. Attention was focused on cooperation in the field of railway and transportation. The Prime Minister noted that Kazakhstan is an important partner of Georgia. Kvirikashvili spoke about current and planned infrastructural projects in the country. The Kazakh Investment and Development Minister expressed interest in involving Kazakh companies in implementation of infrastructure projects in Georgia.

BIA Develops Innovative Business Media Platform On September 29 Holiday Inn hotel hosted a presentation of new brand of BIA – Business Follower. Invited guests received information about the innovative platform that enables users to follow information about business companies published by various media agencies in real time, filter information due to fields, time, media sources or other criteria and organize their own media space to get sorted and interesting information. At the same time, businessmen will be able to supervise information about their own companies in media space, appraise media agencies and place and spread news items in media agencies through the innovative media platform. At the presentation the project authors talked about the new instrument for media monitoring that enables the audience to control information and simplifies content analysis in real time. The new online platform of the Follower is designed for

marketers, PR specialists, reporters and interested bodies, who are interested in business tendencies in Georgia. www.follower.ge enables the audience to have access to publications about more than 35 000 active business companies, which are registered at BIA online bas. More than 100 online media agencies will be involved in the platform, which sorts information due to about 40 categories and this mechanism simplifies filtration process. Separate pages have been created for each company, where all information about these companies are collected and sorted due to time. In parallel regime, all information about business companies will be published on BIA.ge website. The Follower is based on modern technologies. The new platform was developed for saving time, simplifying analysis process and eﬃcient application of business resources.

Literary Contest Winners Revealed – Liberty Bank Awards The Writers National Association for Professional Development of Teachers and Liberty Bank have awarded writers, who have won the literary contest as part of Teacher Weekly. Money awards and notebooks were transmitted to winners of first, second and third places. The first prize was won by Eka Kevanishvili for her best work – I Am Absent, Teacher; The second prize went to Zurab Abashidze for novel Staﬀ Units; The third prize – Luka Bakanidze for “They were Shooting, Teacher”. Moreover, a jury of writers named the best 10 authors of 62 ones: Tornike Chelidze (Javakheti Diary); Diana Anfimiadi (Contact); Levan Loria (Kurum, Kurum); Natia Rostiashvili (I am Lost); Marus Tsotne Tskhvediani (Unfastening Horses); Misha

Bakhsoliani (Teacher of Georgian Language); Ina Archuashvili (Deduka Bekauri); The contest partners have allocated prizes for other participants too. Intellect publishing house has handed over book coupons to Ninia Sadgobelashvili and Ina Archiashvili, while Books in Batumi publishing house transmitted book coupons to Diana Anfimiadi and Leva Loria. Association of Professional Chemists transmitted money award to Tornike Chelidze. The contest of Best Novel on Teacher was established by National Association for Professional Development of Teachers 2 years ago for contemporary Georgian writers. Objective of the contest is to popularize the profession of teachers and upgrade public awareness of importance of their profession.

October 9, 2017 #211

PAINT THE WORLD

COLLIERS INTERNATIONAL GEORGIA’S NEW OFFICE AT KING DAVID BUSINESS CENTER

The ChangeMaker summit took place in the Phillipines in the beginning of Fall. 20 participants from all over Asia were invited to present their youth ventures. The only European participant was Lika, who was also the only Georgian that has ever participated in the summit! Lika presented a social venture which she established at the age of 14- an NGO called Paint the World. “Paint the World” is a youth organisation and a movement “for colours”, originally established in Tbilisi, Georgia. Its all about finding fun and innovative ways of fighting poverty and sadness around the world, and inspiring young people do be more active in charitable activities. The movement soon spread to the entire country, and after the projects was taken over by UWC Atlantic College students in Wales, the NGO became international. At the moment we had projects in Georgia, Malaysia, Swaziland, Oman. I hope that one day each country will have their own “Paint the World” ambassadors. Now when I am 20, I try to think of was of how Paint the World can become a world wide known and recognised brand, the main target of which will be bringing happiness and smiles, and uniting young like minded students from diﬀerent countries.” “I am always honoured to represent Georgia wherever I go, as our country is tiny and most people mistakenly

work, enhance their own initiatives in a dialog with other participants and start joint projects. The program is open to social innovators between 18 and 30 years of age from Africa, Asia and Europe. Since 2012, 350 young socially engaged people from 70 countries came together. So far it has supported 60 international collaboration projects, which had more than 1,00,000 direct beneficiaries. By including eight more summits in 2017, the Changemaker network and its impact continues to grow. The ChangemakerXchange platform is co-created by Ashoka and the Robert Bosch Stiftung. Ashoka (branded Ashoka: Innovators of the Public) is an international organization that promotes social entrepreneurship by aﬃliating individual social entrepreneurs into the Ashoka organization. Their stated mission is “to shape a global, entrepreneurial, competitive citizen sector: one that allows social entrepreneurs to thrive and enables the world’s citizens to think and act as changemakers”. Bill Drayton founded Ashoka in 1980. Today, Ashoka operates in 93 countries on every continent, having elected more than 3,000 Ashoka Fellows worldwide. Ashoka’s Youth Venture is an international community of young changemakers, with over 6,000 Venture Teams in 23 countries across the globe. The aim of the program is to help create an “Everyone A Changemaker World”. Youth Venture was developed from understanding a key insight of Ashoka fellows in the field of youth development: one of the most eﬀective ways to engage youth in the process of changemaking is to help them realize and understand their own ability to make positive social change. Speaking about her experience at the summit, Lika said: I met very inspirational young people. I have been to Asia only once, while working on paint the world project on Borneo. However, now I made connections with the most active young people from The Phillipines, Indonesia, China, Japan, Korea, India… and I am so inspired to collaborate with them and create more interesting projects to change the world for better!” I also met a very special very special new friend from Indonesia, Dissa Ahdanisa.

think its a state in the USA. I am proud to be Georgian, and I try to emphasise that I am a Georgian wherever I am in the world. The summit was dedicated to presenting your social ventures or companies to each other, and all the participants were in their twenties ( I was the youngest one ! ). I presented Paint the World and told the story of its creation in Tbilisi. I also heard stories or my fellow change makers, who do amazing work in their home countries and beyond. After 5 days or trainings, games, conversations and inspiration, I felt that there is much more out the re in the world to focus on, and many more interesting projects and collaborations are yet to come ChangemakerXchange stands for an exchange of ideas between young people who are working on innovative solutions to social, environmental, or societal problems in their immediate surroundings. At five-day exchange meetings, they deepen their knowledge and further develop their initiatives and business models. They net-

Dissa presented her project called “Fingertalk”. Its an organisation dedicated to giving livelihoods to deaf people through service skills training, such as cooking, car shin, and handicrafts. They even give employment and job skills training and employ deaf people at their own Fingertalk`s car wash and cafes! Dissa is a Muslim, and I am Jewish, and we clicked straightaway as we met She taught me some Arabic and said that she loves Jews and has the same views and the world peace as I do- that we can all love each other and be friends and do together. Dissa and I decided to do more projects together in the future, both ion Indonesia and Georgia, to the the message to the entire world that Jews and Muslims can not only be fiends, but also change the world together and bring peace! Lika is currently pursuing a Bachelor of Arts in Bennington College, Vermont, USA. Her dream is expand Paint the World movement more, and to create a better and more colourful world.

The only girl from Georgia in CXC Summit Philippines

“

I am always honoured to represent Georgia wherever I go, as our country is tiny and most people mistakenly think its a state in the USA. I am proud to be Georgian, and I try to emphasise that I am a Georgian wherever I am in the world.

“

Paint the World” is a youth organisation and a movement “for colours”, originally established in Tbilisi, Georgia.

Georgian office of the global company for real estate services awaits for partners at Kind David business center. Multifunctional project King David is in operation handover since summer 2017. The first tenants launched operation at the business center in September,

organization, catering) services. Employees will be able to enjoy special conditions on various services, including in case of accommodation at the complex hotel. Colliers International Georgia provides an exclusive brokerage services to King David business center.

including PwC Georgia and Samsung Georgia. Starting today, Colliers International Georgia has also joined their team. King David is Georgia’s first A-class business center that covers 12 000 square meter space for oﬃces. The business center will serve international and domestic companies. The 19-floor complex has its own underground parking zone, 300 square meter lobby/reception, a conference hall for 100 delegates, rooms for business meetings, cafeteria, bar on terrace, 18 hotel suites. Later the complex will also open spa center, fitness center and a swimming pool with panoramic views. Tenants at the business center will enjoy any oﬃce, courier and organizational (event

Colliers International Georgia is a global company for real estate services that oﬀers a full range of services to investors, tenants, property owners and developers. The company is represented in 68 countries and unites 15 000 professionals worldwide. The company has been operating on the Georgian market for 4 years. With focus on real estate development service, corporate brokerage service, real estate research, consulting and evaluation the company covers the following business sectors: oﬃces, industrial and logistics sector, retail and hotel business.

PUBLICITY

October 9, 2017 #211

WORLD Forbes: Georgia’s Tourism Strategy is Starting to Pay Oﬀ

Istanbul drops 12 places in global financial centers index In a leading index of global financial centers, Istanbul has fallen 12 places to 78th, despite a rise in its rating, among 92 centers across the globe on factors such as infrastructure and access to high quality staﬀ. Istanbul’s overall average rating is 617 in the 22nd Z/Yen global financial centers index (GFCI), up from 609 in the previous index. The city ranked 66th in the previous list, which was released in March and covered 88 financial centers. Warsaw became the top center in the Eastern Europe and Central Asia region, to which Istanbul belongs. Warsaw ranked 36th in the global list with a ranking at 664. London remains top London remains the globe’s most attractive financial center, extending its lead over New York despite Britain’s looming departure from the European Union. Britain’s departure from the trading bloc has led to some politicians and economists predicting London will lose its pre-eminent status as a financial center, but there are few signs of that happening yet. London was placed first, followed by New York, Hong Kong and Singapore in the index. New York was 24 points behind the British capital, the biggest gap between the two since the survey started in 2007. New York’s ranking fell 24 points from last year, the largest fall among the top contenders, a dip the survey’s authors said was “presumably due to fears over U.S. trade.”

Georgia takes its tourism seriously, very seriously. Just ask Jesper Black. When the Dutch tourist landed at Tbilisi International Airport becoming the country’s six millionth visitor in 2016 he was whisked away in a Mercedes sedan for a red carpet welcome and private dinner with Prime Minister Giorgi Kvirikashvili. The agency behind the campaign to mark the country’s milestone even created a website for Georgians to vote on which national dish should be served to the six millionth tourist, khinkali dumplings or chkmeruli chicken? Clearly having jumped from 2.8 million visitors in 2011 to six million in 2016 is a big deal in this former Soviet Republic situated between Europe, Russia and the Middle East. And suddenly it feels as if it’s on every traveler’s radar. In 2015, Georgia ranked 25th on the New York Times’ 52 Places to Go. New flight routes have launched from cities around Europe and this year Georgia made Conde Nast Traveler’s list of hottest upcoming wine destinations. These inroads are the culmina-

tion of a significant push and investment on all fronts to develop Georgia’s tourism industry into sustainable major driver to improve its overall global economic position. In 2015, the Georgian government partnered with the World Bank to develop a cohesive strategy to attract high-value tourists from around the globe. Georgia has always been synonymous with a culture of hospitality and warmth, visitors are said to be “gifts from God.” In Soviet times its Black Sea resorts were a big draw along with its celebrated cuisine and wine culture. But after the breakup of the Soviet Union tourism began to decline due to crumbling infrastructure, corruption, failure to collect tax revenues and political unrest. Since 2004 the government has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. The World Bank has praised Georgia’s anti-corruption eﬀorts and is working closely with the country to modernize its tourism industry.

Putin Says Oil Pact With OPEC May Be Extended to End of 2018

Ukraine state company wants in on development of Azerbaijan’s biggest oil&gas fields

Older Persons Key Players in Global Development Agenda

Ukraine’s “Zorya-Mashproekt” is interested in establishing large-scale and long-term cooperation with Azerbaijani companies in the energy sector, the company’s Head of the group for market analysis, Natalia Garkusha told Trend. Garkusha said the company is ready to supply gas turbine equipment with the capacity of 6, 15 and 25 MW for the needs of oil and gas companies of Azerbaijan and for regional power supply and power supply of factories. “Our biggest interest is cooperation with companies who are involved with energy projects based on EPC [Engineering, procurement and construction] contracts, as well as with suppliers of gas pumping units for construction or modernization of existing compressor stations,” Garkusha said. She went on to add that the company is interested in participating in oil and gas projects, where gas turbine equipment is in demand. “Such projects include the development of Shah Deniz and Neft Dashlari fields, the Azeri-Chirag-Guneshli, the extension of the Baku-Tbilisi-Erzurum gas pipeline and other projects involving the State Oil Company of Azerbaijan (SOCAR),” Garkusha said. “Zorya-Mashproekt”, which is part of the state Ukrainian concern “UkrOboronProm”, has already worked in Azerbaijani market. In the mid-1980s, the company supplied gas turbine engines with a capacity of 12 MW for power supply of the Neft Dashlari (Oil Rocks) oil field.

As the proportion of the older persons across the Asia-Pacific region increases exponentially, we must seek out new and innovative approaches to turn this demographic trend into an opportunity to be harnessed to help achieve the ambitious targets of the 2030 Agenda for Sustainable Development. The number of older persons in the region is expected to more than double, from 535 million in 2015 to about 1.3 billion by 2050, we need to consider the myriad impact of this phenomenon on our economies, societies, and livelihoods. Ignoring this challenge is likely to have profound consequences. We cannot leave the care of older persons to families alone nor can we ignore the need for progressive health care and income security schemes. Future economic growth cannot be assured by the current and projected working-age population. The ratio of people of working-age to older persons is decreasing sharply, and in most countries of the Asia-Pacific region, less than a third of the workingage population contributes to a pension scheme. Traditional systems rely on the family to support their ageing relatives – both financially as well as providing care for those who need it. However, with smaller families, there will be fewer

family members in working-age to shoulder this responsibility. Declining support ratios also have implications on existing social security schemes, particularly pay-as-you-go pension systems, under which the contributions paid by current workers support the pensions of retirees. When one considers the diﬀerences in the average age at marriage, coupled with the longer life expectancy of women, women outlive their spouses on average by a range of 4 to 10 years. Yet, as the proportion of women in the population increases with age, women are less likely than men to have adequate pension benefits or control over assets, such as land, in their old age. Special social protection measures are required to redress the feminisation of poverty, in particular among older women. There is a linear relationship – although not a causality – between GDP per capita and the level of population ageing, which shows that countries with higher incomes tend to be more advanced in the ageing process. Some countries became old before becoming rich, such as Georgia, Armenia and Sri Lanka with per capita incomes between $3,500 and $4,100 and a proportion of older persons between 13 and almost 20 per cent.

President Vladimir Putin said Russia is open to extending a deal with OPEC to curb oil supplies to the end of 2018, though he’ll wait to make a decision until nearer the expiry of the existing pact in March. The comments are the strongest signal yet that the Kremlin is willing to redouble efforts to lift global energy prices, coming as Putin prepares to welcome King Salman Bin Abdulaziz of Saudi Arabia to Russia for the first time this week. OPEC Secretary-General Mohammad Barkindo called them a “very strong endorsement” of the deal. “Based on the realities in March 2018, we will make our decision, but I do not rule out that we may extend” the agreement, Putin said at the Russian Energy Week conference in Moscow on Wednesday. “If we speak about a possible extension, then of course, it should be at least until the end of 2018.” Brent crude, the international benchmark, erased losses following Putin’s comments, trading little changed at $55.94 a barrel at 2:31 p.m. in London. Russia, which relies on energy for more than a third of its budget revenue, reached a historic accord last year with the Organization of Petroleum Exporting Countries to cut production, hoping to eliminate a global oversupply. While the nation’s economic growth accelerated to the fastest pace in almost five years in the second quarter amid recovery in crude prices, the supply glut has taken longer than expected to clear. Growing U.S. shale output means the market could return to surplus again next year if the producers were to reverse their curbs.

PUBLICITY

October 9, 2017 #211

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 76-g Chavchavadze Ave., Tbilisi Tel: 231-11-61, 231-14-54 E-mail: 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 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.esRomania Embassy 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy

TBILISI GUIDE 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 European Investment Bank Regional Representation for the South Caucasus Address: 1,G.Tabidze Street, Freedom Square Phone: +995 322 006284

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 RIVER SIDE HOTEL With incredible service and views Addr: Mari Brosse street turn, Old Tbilisi. Tel: +995 32 2242244; +995 32 2242288 Fax: +995 32 2 242277 Email: info@riverside.ge Website: www.riverside.ge

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

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

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,

LIMELIGHT TRAVEL INFO CENTER Address: 13 Sioni Street, 0105, Tbilisi (at the end of Shardeni Street) Phone: +995 322 999 123 E-mail: info@limelight.ge Web-page: www.limelight.ge Facebook page: www.facebook.com/limelight.ge

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

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

PUBLICITY

October 9, 2017 #211