Caucasus Business Week #218

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December 4, 2017 #218

December 4, 2017, Issue 218 - www.cbw.ge

Security Whether Hotels Ignore Firefighting Systems to Avoid Taking Extra Costs

Pg. 9

David Lynch: We’re Going to Find a Peace in World very soon, and Georgia’s Gonna Play a Role in This Pg. 6

PR Person Lali Galumashvili: PR is simplified way to obtain contacts and sources Pg. 8 REGUS, the World’s Largest Provider of Service Offices, Opened New Service Center in Tbilisi

Number of Insolvent Citizens in Georgia Grows Debtors Registry Records more than 230 000 Entries

Regus, international provider of services offices worldwide, has entered the Georgian market. The company offers comfortable and ideal working environment, adapted to consumer needs on Freedom Square in Tbilisi, the most prestigious, active and dynamic part of the capital city (address: Leonidze Street N2, Business Center Tabidze 1, 4th Floor). Regus meets the demand on flexible and agile working environment for all type of businesses. Newly renovate A-class offices, flexible and simple terms of payment, modern IT infrastructure, meeting rooms, shared working space, administrative services, access to 3000 business centers of Regus worldwide - all these services important for successful operation of small, medium and major business companies. Everything is close to the Regus Business Centre – highclass hotels, cafes, restaurants and shops, and all these creates ideal environment for both – work and leisure.

Pg. 11

Software Asset Management Microsoft’s Answer to Cyberthreats

Pg. 4

How secured are intellectual property rights in Georgia nowadays?

Laurent Signoret, Central and Eastern Europe SAM & Compliance Director at Microsoft answers our questions.

Development of new technologies, implementation of new services and solutions in business management, significant increase of information environment in which modern society work, requires from public and private sector to pay attention to the security of private information.

The pattern of cyberthreats is constantly changing, which results in changing requirements to the methods and means of security as well. Given the above, Microsoft offers to the companies Software Asset Management to leverage cybersecurity risks.

Pg. 11

Newsroom

2 Government

State Budget to Transfer 60 million GEL to Tbilisi City Hall

The funds will be spent purposefully and a bulk of these sums will be spent on improvement of Tbilisi subway infrastructure. The transfer will also finance the rehabilitation of the historical part of Tbilisi.

Georgia Ranks 76th in terms of Infrastructure Quality

Georgia ranks 69th in terms of infrastructure competitiveness. According to the World Economic Forum indicators, Hong Kong ranks first with the world’s best infrastructure.

Georgia’s rating score is 4.2.

economy

Economic Growth in October Hit 5.7%

According to preliminary estimations, as compared to the same period of 2016, in October 2017 real GDP growth pace made up 5.7%, while the 2017 January-October real upturn constituted 4.9%.

Georgia’s External Debt Rises by 0.545bn USD Year on Year

According to Ministry of Finance, monthly reports have recorded a slight contraction in debts, down from 5.005bln USD as of September 2017.

The figure stood at 4.456bln USD as of October 31, 2016.

banking

TBC Bank Signs 94 million EUR Agreement with EIB Group

The 80mln EUR guarantee agreement called as EU Funding for Innovators (InnovFin) will be spent on development of innovative small and medium companies in Georgia.

Total Assets Amount to 33.5bln GEL

Total assets of commercial banks (in current prices) stand at 33.5bln GEL as of November 1. In October month on month growth marked 1.2bln GEL (+3.7%). The growth without exchange rate effect constituted +1.1%.

business

170 Mln USD to Be Invested in Tekhuri HPP Cascade Construction

The installed capacity of “Tekhuri Cascade” is 112.39 MW, and the estimated annual output is 653.25 mln KWh. Estimated investment cost of the project is USD 170,050,000.

Turkey Sends First Train to Azerbaijan via BTK Railway

The first freight train was sent via the new BTK railway from Kazakhstan’s Kokshetau on October 24. The train consisted of 32 containers loaded with grain.

company

iPhone at Beeline with the Best Terms

Beeline, communications and technology company, signed an official contract with Apple and now offers customers a pre-order and best installment for iPhone.

December 4, 2017 #218

Bjorn Brandzaeg CEO of Clean Energy Group: The hydropower resources in Georgia gives the country the opportunity to develop cheap, flexible renewable energy resources and secures energy independence

B

jorn Brandtzaeg, the CEO of Clean Energy Group, attended the Belt and Road Forum, a follow-up to the 2015 Silk Road Forum, at Tbilisi’s Biltmore Hotel. Mr. Brandtzaeg is also the CEO of the company’s Georgian subsidiary, Clean Energy Group Georgia, which is planning to construct the Namakhvani Hydropower Plant (HPP) cascade.

This plant, with a capacity of 433 MW / 1514 GWh, will represent one of the largest investments in Georgia’s energy sector.

Construction of Namakhvani Hydropower Plant cascade is planned to start in 2018 under an Engineering, Procurement and Construction (EPC) contract with ENKA, a leading Turkish engineering & construction company, with extensive international experience. ENKA is currently constructing part of the USD 500 million BP gas pipeline through Georgia.

Namakhvani Hydropower Plant cascade is crucially important for Georgia to gain energy independence. The project will be increasing the country’s electrical generation by approximately 15%. The substantial reservoir capacity of the project will

improve the energy security of Georgia and enhance electricity system stability. The project is expected to create up to 3000 jobs during construction with preference given to employing local residents. The project will also help meet Georgia’s commitments under the Paris Accord by reducing the CO2 emissions by approximately 750,000 tonnes per year.

During the forum, Mr. Brandtzaeg discussed the importance of realizing Georgia’s renewable energy potential to the country’s pursuit of energy independence.

He also stressed the importance

of constructing transmission lines, developing cross-border transmission capacity with neighboring countries, and Georgia’s geographic advantages in the energy market. He stated, “The hydropower resources in Georgia gives the country the opportunity to develop cheap, flexible renewable energy resources and secures energy independence.”

Clean Energy Group Georgia LLC is a privately held renewable energy developer, investor, and long-term asset manager, owned by Clean Energy Group AS of Norway and ENKA İnşaat ve Sanayi A.Ş. of Turkey.

British Singer James Blunt to Visit Georgia on May 26th

P

rominent British singer James Blunt will visit Georgia in the framework of world tour. Concert will be held on May 26th, Independent day, at Mikheil Meskhi (Lokomotivi) Stadium. Singer and composer will perform songs from his previous album ”Afterlove”. Festival is organized by new promotion company Black Pearl Live.

Promotion company Black Pearl Live help press conference at Hotel ”Hotels & Preference Hualing Tbilisi”. Event organizers shared details of the concert.

“I want to thank you under the name of Black Pearl Live. James Blunt is the first international star to invite at the Mikheil Meskhi Stadium on May 26th. This show is part of his world tour – Afterlove and a fifth studio album presentation that was created after the multi-platinum album “Moon Landing”. Fans can wait for all their favorite hits, including his last single, “Love Me Better”. It is important that all the local singers and special guests from South Africa participate with him. We want to join the joyful moment with our festival and we think that this is a wonderful way to celebrate Georgia’s Independence Day, we invite you all to attend the holiday, “said Kuun De Beer, managing partner of Black Pearl Live.

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

The grand festival of “Independence Day” will be held on 26 May 2018. The festival’s common language is music, which unites Georgian and foreign listeners and enables Georgian students to become an important event participant.

“Other performers will also participate in the festival. It is very important that Georgians will be together with foreign participants. Due to the varied program of the event we can say that it will be a very memorable and full of impressions. The Festival will definitely contribute to the Independence Day celebration “, – said Tinatin Samkurashvili, Chief Consultant of GEPRA, It is known that Parlotones is invited to the festival – Rock Band from Johannesburg (South Africa),

which will perform songs created on love and life motifs. The host of the event will be complected by energetic and strong rock groups as Young Georgian Lolitaz and Loudspeakers. Young Georgian Lolitaz – is the first band of men who presented Georgia on the “Eurovision” of 2016, the Loudspeakers – a famous Georgian rock band that gained tremendous popularity with the Tbilisi Altervision Music Festival.

The international promotion company Black Pearl Live is based in Georgia, which cooperates with the world’s top performers. The company has quite ambitious goals in the Georgian market. The Black Pearl Live aims to carry out large-scale festivals, concerts and shows to make Georgia the home of cultural events of the world.

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

December 4, 2017 #218

publicity

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econo-mix

December 4, 2017 #218

Number of Insolvent Citizens in Georgia Grows Debtors Registry Records more than 230 000 Entries

Merab Janiashvili Economic Analyst

Hence, we keep building the country, where the banking sector is the most profitable field, while our population pays a major part of their incomes and property to commercial banks because of enslaving agreement terms

‘‘

December 6th, Radisson Blu Iveria Hotel - PASHA Bank hosts its fourth business conference in the scope of MEETING ROOM with the topic being “Capital Raising Alternatives for Agricultural Projects”.

MEETING ROOM will bring together interested parties from public and private sectors to discuss major issues concerning the agricultural project financing and management. The MEETING ROOM will cover, among others, the following topics: overview of the agribusiness development in Georgia, capital raising options, insurance offerings for agribusiness, specific considerations for financing agro-projects, etc.

The presentations will be delivered by following confirmed speakers: Mamuka Kvaratskhelia - Director, Agriculture Projects Management Agency Giorgi Danelia - Head of Investment Department, CIO, Partnership Fund Ani Kobalia - Associate Director, Agriculture & Logistics, Georgian CoInvestment Fund Zviad Kajaia - Head of Business Development Department, PASHA Bank Vladimir Gugushvili – Partner/CEO, Georgia’s Natural The meeting will be moderated by George Sharashidze, General Manager of Georgia Today Group.

“We are happy to announce our fourth business conference under the auspices of MEETING ROOM - a series of conferences focused on various economic sectors. The previous three business conferences were dedicated to the Hotel Development, Renewable Energy and Healthcare. On December 6th we will gather again in Radisson Blu Iveria Hotel to talk about the major issues concerning the implementation of agricultural projects in Georgia.

Hereby, we would like to invite all interested parties to the conference to join the conversation and share their experience in the field.“– said Goga Japaridze, CCO, Member of the Board of Directors at PASHA Bank.

MEETING ROOM is a project initiated

by PASHA Bank - a cycle of business conferences that aims to bring together participants from various industries providing a platform for sharing ideas and best practices as it relates to raising the capital for a wide range of business sectors.

Those who would like to attend the conference can write to PASHA Bank to the following e-mail address: diana. tigishvili@pashabank.ge.

‘‘

Capital Raising Alternatives for Agricultural Projects – the Fourth MEETING ROOM Conference by PASHA Bank

Quantity of insolvent citizens rapidly grows in Georgia. The tendency has intensified in 2017. Over the past 10 months, the quantity of insolvent citizens rose by 23.5%. As of January 20, 2017 the Debtor Registry of National Enforcement Bureau registered 186 285 debtors, while currently the registry records 230 223 entries. Thus, in JanuaryOctober period the list of insolvent citizens has recorded 43 928 new entries.

According to the mentioned statistics, currently, 6.1% of total population of Georgia are insolvent (3.718mln persons live in the country, according to Geostat). It should be also noted that 1.998mln citizens are economically active in Georgia. This signifies 11.5% of active population are insolvent and this signifies this category is ejected from economic processes.

In general, data in the Debtor Registry changes quickly, because entries are removed after debts payment. However, the fact is that over the past years the Debtor Registry records more and more entries. According to economic experts, when the number of entries grows in the Debtor Registry, this signifies the living conditions in the country becomes expensive and the number of insolvent citizens also rises. All these factors signify that economic activity is low and social background remains heavy. To change the situation, at least the economic activity should be intensified.

Even the credit bureau indicators prove the situation is heavy. According to these indicators, more than 0.5mln persons have overdue loans in Georgia and total amount of the overdue loans exceeds 10bln GEL. «The Credit Bureau indicators show how many people have overdue loans. Regretfully, this is a huge figure. More than 0.5mln persons are recorded in this list. Our goal is to reduce this quantity. Our objective is to protect our population from heavy burden and they have enough incomes to serve their loans. We talk about shaping these mechanisms. If their incomes do not suffice to serve the loans, naturally, a considerable part of our population will be impoverished», NBG vice president Murtaz Kikoria noted.

Akaki Zoidze, head of parliament’s health and social issues committee, names 4 reasons the number of insolvent citizens has increased.

«In general, the number of insolvent citizens grows because of complex issues and it comprises several directions, including loans, especially consumer loans, microfinance organizations, online loans and gambling games.

All these factors have brought the current results. Government is working on this

direction. The issue with online loans were resolved. Similar organizations had imposed high interest rates and fines and people, who could not cover debts, were included in the list of insolvent people. I reaffirm that now these issues have been resolved.

As to microfinance organizations and financial pyramids, NBG continues active job on this issue and we have submitted a new initiative to the Parliament. We will discuss this initiative and we hope pseudo investment funds and pyramids will be subjected to maximum regulations.

Online games and casinos are in the next category. Regarding this issue a new initiative has been submitted, which is being discussed at this stage. The submitted mechanisms will be very efficient. Larization program will promote the process, which alleviates the threat of turning insolvent as a result of GEL exchange rate devaluation», Akaki Zoidze said.

Along with the growing number of insolvent citizens and growing amount of overdue loans, commercial banks also grow their profits. «Georgia-based commercial banks rank first in terms of profits in Europe and Asia», economic expert Mikheil Dundua said.

«According to International Monetary Fund (IMF), among deposit-banking systems Georgia comes behind of only China’s tiny province of Makao in terms of Return on Equity (ROE). In Georgia the ROE accounts for 22.9%, while in Makao the figure constitutes 23.1%. As to Return on Assets (ROA) Georgia comes behind of only Maldives. In Georgia ROA accounts for 3.1%, while on Maldives ROA is 3.5%. Over the past 34 months, net profits of the banking sector exceeded 1.885bln GEL, up 240mln GEL as compared to total amount of all previous years. The January-October profits of the banking sector exceeded 669mln GEL (259mln USD).

For comparison, in 2016 the net profits of the banking sector made up 679mln GEL (257mln USD), Dundua said.

The central and commercial banks jointly with other crediting organizations have accustomed us to the existing reality. Social conditions of our population and their solvency worsens, while profits of commercial banks beat records every year.

Regretfully, neither Government nor National Bank demonstrates readiness to change the situation. Hence, we keep building the country, where the banking sector is the most profitable field, while our population pays a major part of their incomes and property to commercial banks because of enslaving agreement terms.

“We are sure that cross-border infrastructure should be developed further to reap more benefits.

Our bank is eager to back a formation of synergy and this initiative, which is called as One Belt- One Road. At the same time, this is a country, which grows and gets modernized. We are long-term investors and we believe in stable development of Georgia, in its future, its strategy. This year EIB will celebrate the 10 anniversary of operation in Georgia”.

Vazil Hudak

Vice president f European Investment Bank

December 4, 2017 #218

publicity

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interview

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ninna gomarteli

December 4, 2017 #218

According to David Lynch, ‘’happiness lies within’’, although it was all around while his 4-day visit in Georgia. His visit was organized by David Lynch Foundation Caucasus, established by Giga Agladze, with following several missions.

David Lynch: A prominent film director, script writer, artist and musician founded the David Lynch Foundation (DLF) in 2005, which has brought the most effective technique for Self-development and stress-management, the Transcendental Meditation (TM) technique, to more than 600,000 children, women, veterans, prisoners, etc., all around the world, headquartered in NYC, main companies operate in USA, the UK, France and Ukraine.

Giga Agladze, a famous figure in Georgia and in the Caucasus as a musician, composer and director of documentary and feature films established David Lynch Foundation Caucasus in July 2017. David Lynch had a tour of the DLF Caucasus office premises and introduction of staff and supporters of DLF Caucasus.

David Lynch had a meeting at the Parliament of Georgia moderated

by Mariam Jashi, Chairperson of the Parliamentary Committee of Education, Science and Culture. At the meeting topics were discussed, such as: experience of DLF programmes globally, ongoing reforms and internalization prospects of the Georgian Education and Science systems, including in Cinematography, overview of the Georgian Film making history, Prospects of joint collaboration of the Parliament, Government

and DLF in the fields of education, science and culture.

Gia GogitashviliAlong with his visit, a film director was introduced Georgian traditions, wine and its making techniques, local cuisine and attended a special rehearsal consisting of Georgian polyphonic song and dance performance of Erisioni held for David and his delegation. After which, he shared his impressions: I love Georgia, I love the people, so warm, intelligent, creative. I feel very good about what will happen here in Georgia with this new university for cinema and creative arts, and technique of transcendental meditation for individual saying goodbye to suffering and taking happiness.

In the framework of main mission, supporting health and social rehabilitation programs for the most in need population groups in Georgia, he met wounded warriors of the Tserovani premises of the Ministry of Defense of Georgia – war veterans working or under the treatment of the, presented rehabilitation for wounded warriors globally.

Meanwhile, locals got a chance to attend a public lecture on Transcendental Meditation and DLF work by Mr. David and Mr.Bob Roth, CEO of the David Lynch Foundation. Before their arrival of the DLF delegation, auditory of 500 people received fur-

ther information about the topic and watched video of its introduction, lecture by Bob Roth. Q&A session was attended by students and youth, representatives of medical and social science societies.

A film director also greeted the audience gathered at Amirani Cinema, ”Mulholland Drive” screening.

The characters of your films have very interesting journeys, while they feel ambiguous and sometimes even depersonalized.

Do you think that if they practiced transcendental meditation, it would give us essentially different stories?

Obviously, all the characters are different, they all come from ideas, they interact one with another, they are the way they are, but if you introduce some technique, that allows them to dive within and experience this positive field, naturally they’re going to become different, they’re gonna be happier, more creative, more peace loving, more feel with love, energy which will change them.

You would not have the same story!

We know how transcendental meditation helps people to overcome stress, heal post traumatic condition or simply vanish negative energy. How does it work with phobias, do you have any personal experience when

We’re Going to Find a Peace in World very soon, and Georgia’s Gonna Play a Role in This you realized you could deal with some of your fear?

Many, many things. I’d say every human being has consciousness, but not everyone has the same amount. The human being has an infinite consciousness, that’s the potential of each one of us. We’ve lost contact with our inner treasury, and transcendental meditation re-establishes contact with that, in all positive way. People are fatigued these days, they’re not able to sleep well at night, they feel stressed, anxiety, tremendous fear going around the world. It’s a common sense, if they get this technique that opens a door to all positive within, things are gonna change for the good. I’ve had a lot of anger back then when I first started meditating, and within two weeks, that anger that I was taking

out of my first wife, lifted away, without me even trying. Suddenly, all kinds of fear leaves you away, you start enjoying life, you start seeing a brighter, more beautiful world, people look better and better, they look more like friends than enemies, everything improves and negativity gently evaporates without you even trying. It’s beautiful!

We experienced intense love, it was incredible. It’s so powerful that, negativity doesn’t stand a chance anymore in this world. We’re going to find a peace in world very soon, and Georgia’s gonna play a role in this.

While his departure, on the question we asked, whether he’d be back in Georgia, he responds: ”I’d say, I’m here now, I haven’t even left, but I’m already thinking of coming back!’’

Silk Road

Quotes from forum:

Vazil Hudak, vice president of European Investment Bank (EIB) “We back Georgia’s aspiration to develop Europe-Asia transit corridor and grow into a business center.

Dr. Anil Gupta, the Head and Professor of the University of Maryland “In 10-15 years, Silk Road will be regarded as one of most transforming and revolutionary initiatives of Century”

Minister of Tolerance of United Arab Emirates (UAE) We will Double Investments in Georgia

President of Venice Port Pino Musolino “Venice is the destination of the western region of the Silk Road. We were the first cruise ships of the Silk Road and we would like to be active participants in the 21st Century One belt One Road Initiative. We are involved in this project since 2013”.

Dimitri Kumsishvili Minister of Economy and Sustainable Development of Georgia “Silk Road will to replace the KarsAkhalkalaki Railway” Mamuka Bakhtadze, Minister of Finance of Georgia “Georgia Established its Place in the Conception Named Modern Silk Road”.

Genadi Arveladze, Deputy Minister of Economy and Sustainable Development of Georgia “Georgia Claims to Have Liberal Trade Policy Based on Free Trade Agreements”.

Alain Pilloux, Vice President of the European Bank for Reconstruction and Development (EBRD) Georgia is leading the second wave of countries in eastern and central Europe, with its progressive reforms.

Henrik Hololei, Director-General for Transport and Mobility, European Commission “EU and Georgia Share an Ambitious Transport Agenda Delivering Tangible Results”.

Mamuka Khazaradze President of TBC Bank, “Georgia Should Be Important Player in One Belt One Road Initiative”.

Volodymyr Groysman, Prime Minister of Ukraine “We Plan to Reduce Ferry Transportation Tariffs Up to 60%”.

Wencai Zhang, vice President of Asian Development Bank “Georgia Implemented Projects of 2.3bln USD in 10 Years.”

Exploring Opportunities

Qian Keming, Deputy Commerce Minister of China “Georgia is the first country, which has reacted to Silk Road Forum initiative and it is an important partner”.

7 Tbilisi Holds Belt & Road Forum

December 4, 2017 #218

Tbilisi Belt & Road Forum 2017 kicked off here Tuesday, with Georgian Prime Minister Giorgi Kvirikashvili stressing the forum aims to explore opportunities stemming from the China-proposed Belt and Road Initiative.

“The revival of the Great Silk Road, encapsulated in the Belt and Road Initiative proposed by the President of China, rests upon five fundamental principles: peace, prosperity, openness, innovation, and exchange of civilizations,” Kvirikashvili said in a welcome speech delivered at the two-day event.

He noted that Georgia will spare no effort to give, in cooperation with its partners, fresh impetus to the diversification of transport routes along the Silk Road and raise the effectiveness of these routes, while stepping up the implementation of related projects to boost economic and civilization ties between Europe and Asia.

According to the Georgian government, Tbilisi Belt & Road Forum aims to establish a platform for high-level meetings where regional partners get together to explore opportunities, align visions and enhance bilateral partnerships in four main areas of cooperation: transport, energy, trade and business-to-business contacts.

A series of agreements were signed on the sideline of the forum attended by around 2,000 participants from all over the world, including a memorandum of understanding on developing economic zones and entrepreneurial capacity between China and Georgia.

PR Person

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December 4, 2017 #218

Interview with Lali Galumashvili, expertconsultant in public relations issues of Social Service Agency.

“My work week is quite overloaded and includes many thoughts, analysis, planning and action”

PR is simplified way to obtain contacts and sources - Why did you decide to enter this field and what opportunities does it give you in terms of career growth?

- Universal, diverse knowledge, relationships with educated and erudite people and realization of your capacities among society are the main reasons why I chose this field.

- What is it necessary to hold successful communication with public?

- Knowing it thoroughly the specific individual interests of specific segments of society.

- What three tips would you offer someone just starting out in PR? - Listen! Smile! Take care!

- What do you wish you would have known before starting your career in PR? - Foreign languages; profile cases in the history of those countries who have played a dominant role in the various stages of human evolution in the global scope of

“

It is important to work as a team player, sense of responsibility, operationality, real assessment of the situation, analytical thinking

society’s tastes; Political technologies that play a definitive role in forming a full spectrum of state policy.

- What is your typical work week?

- My work week is quite overloaded and includes many thoughts, analysis, planning and action.

- How would you go about finding relevant contacts and sources?

- Nowadays, the ways of obtaining contacts and sources are facilitated by social media and the Internet. In addition, my personal contacts, thematic trainings and meetings expose this area.

- How would you prioritize and start your work day?

- It might seem banal, but I hurry up to park a car comfortably. In other ways, it’s consecutive, preorganized actions and planning of them. It starts with positive thoughts my every work day, which makes each step more pro-

ductive and successful.

- What are the required skills to be a successful PR Manager?

- Sharp thinking, system vision, differentiation of priorities, awareness, decision making skills.

- What trait do you value the most in your co-workers?

- It is important to work as a team player, sense of responsibility, operationality, real assessment of the situation, analytical thinking.

- What is the best PR practice technology can’t change?

- authentic relations, direct communication, multirateral experience.

- What are some of the growing trends in the public relations industry?

- Introduction of new technologies, new challenges, possibilities; Online relations, social media adaptation, expanding communication campaigns, public engagement and feedback.

December 4, 2017 #218

Security

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Whether Hotels Ignore Firefighting Systems to Avoid Taking Extra Costs ninna gomarteli

The recent tragedy in Batumi has proved that some real estate owners care less for human life. People turned out unprotected even in a 5-star hotel. Reasons may be found in legislative gaps. If a building cannot satisfy firefighting system standards, the legislation fines the lawbreaker by only 300 GEL. To prevent similar tragedies, specialists demand to tighten the legislation and its enforcement control mechanisms.

A total of 14 persons died at hotel conflagrations in Georgia over the past 2 years. On May 10, 2015, in Kobuleti, fire broke out at Armazi hotel. As a result, 3 adolescents died, members of Rustavi dance ensemble. In several months after this tragedy, on July 23, 2015, under the government’s resolution N370, firefighting safety technical regulations were approved and various facilities, including hotels, hospitals, storehouses, refueling stations and other ones are obliged to satisfy these regulations.

However, despite heavy experience, nobody cares for further tightening of firefighting norms and legislation.

Moreover, it is also questionable whether facilities fulfill the current norms. According to specialists, the fact is that buildings, including major and expensive hotels are put into exploitation without scrupulous examination.

Two years ago, 3 persons died, while this year on November 24, eleven persons died at LeoGrand hotel. We have regulations, but the tragedy scales have broadened.

The Caucasus Business Week (CBW) has inquired whether Ajara-based hotels satisfy firefighting standards.

Gocha Kankia, representative of ARmeridans company, which is implementing White Sales hotel project in Batumi, says that the facility maximally satisfies all norms.

Currently, construction works are being carried out at the facility and it is early to talk about safety norms. The company maximally protects labor safety norms and will definitely protect firefighting norms too, Kankia said.

«Anagi company carries out construction works and the same company is responsible for the safety norms. Anagi organizes all these issues at serious level. We are customers and even we are not admitted to the site without protecting safety norms. When clients buy the product, they inspect everything and we may lose their trust if we do not protect elementary safety norms», Kankia noted.

Firefighting norms will be protected at the LeMeridien 5-star hotel located at Batumi Tower.

Malkhaz Kunelauri, project manager for Redco development company, which is the hotel owner, noted that the mentioned issue is controlled by both Georgian and foreign parties.

Starwood is a luxury brand and more than 46 Starwood brand hotels operate in 24 countries worldwide. Redco has already introduced the Group’s member brand. The issue is of Le Meridien, which will be located in Batumi, at Batumi Tower. Starwood satisfies international safety standards, Kunelauri said.

«Before we purchased the current building of Batumi Tower, it did not satisfy firefighting norms. I am responsible for these words. Huge financial resources are required to remake it and we carry out this project stage by stage», Kunelauri noted.

As to expenditures for installation of firefighting systems, Kunelauri noted that the expenditures are about 35-40mln USD. Nikoloz Abashidze, the development sector specialist explains that the country does not have the corresponding code that would rgulate architectural-planning and firefighting issues.

«Government has decided to reject oviet principles, but

when you reject one, oit should be replaced by another. We have the law on Architectural Activity, which was refused as an outdated one, but it was not replaced by a new one. Firefighting and architectural-planning part are not regulated.

The code is being developed for 14-15 years and we could not adopt it as a law. There are no leverages in this field. It is the Government’s responsibility, when similar tragedies happen.

Therefore, it is necessary to make amendments to the law on Architectural Activities.

As to technical regulations on Firefighting Rules and Conditions, they are applicable for firefighters. Only regulations cannot resolve problems, without expert studies. Previously, this expert evaluation component was removed from both firefighting and architectural-planning part. Nobody was making expert evaluations on the performed work. All regulations become useless without due expert studies», Abashidze said.

As to whether the existing regulations are fulfilled and whether fulfillment process is controlled, Abashidze said that he had not information about these aspects.

«Inspection should be carried out once a year by the 112 service and Emergency Management Agency. Corresponding recommendations should be issued and the construction supervision office should be requested to control fulfillment of these recommendations. I have no information whether the mentioned office controls this process. The technical regulations are not perfect. They only determine where to put this or that device and equipment, how many fire extinguishers should stand in the building and what distance should be between them. As to fire-fighting staircase, technical regulations do not regulate this issue, but it is included in the architectural-planning part in general forms indicating that fire-fighting staircase must exist», Abashidze noted.

Under the international practice, all projects must have a responsible architecture, while in our country nobody bears responsibility for the mentioned issues, Nikoloz Abashidze said.

«When somebody implements the project, it is necessary that a certified architect join the project designing process

and the latter must be responsible for protection of the applicable regulations. This issue is not regulated in our country.

Therefore, we do not have prepared and responsible bodies, who would fulfill the regulations. We do not know who are responsible, who are to inspect the project. Previously there were main architects of the project and main engineers, who used to carry out planned expert studies. Today we do not have even certified engineers. As I have noted even the planning expert evaluation has been abolished. After this decision the control mechanism was to move to domestic bodies and even architecture offices could conduct similar type of expert studies.

Similar offices carry out only external inspection of facades, balconies, windows, construction coefficients, how they fit the city planning part and so on, but they do not inspect internal planning part, regretfully.

Since the designing process lacks for regulatory components, young architects fulfill these project at cheap rates and they do not know regulations. The project is agreed without expert conclusion into planning part and nobody inspects it. If the project is designed by a professional, these details may be taken into account in the project, but these aspects are not requested and nobody inspects them», Nikoloz Abashidze said.

It is difficult to conclude what specific factors have provoked fire at LeoGrand hotel and how the hotel had protected the firefighting standards, before completion of investigation. It will be difficult to identify the responsible body in this case, Abashidze said.

«Before the investigation completion, we only hear available reasons that could provoke fire and similar tragedy. Some versions say that smoke penetrated the hotel staircase cell and elevators and then the electricity shut down. In this case alternative power supply must have been switched on in the firefighting and safety systems. However, the building could not have similar systems if they had not been designed from the very beginning. In this case, we cannot determine even the responsible body. This is our misfortune», Nikoloz Abashidze said.

business

10 Schulze Global to Invest in Georgian Hydropower Projects Alongside Silk Road Group On November 21, Schulze Global Investments signed final, binding agreements to invest in two hydropower projects owned by Silk Road Energy, the energy holding subsidiary of Silk Road Group in Georgia.

Under the agreements, Schulze Global will invest up to USD 15 million to be split between Bakhvi 3 HPP, an existing 9.8MW hydropower plant, and Machakhela HPP, a greenfield hydropower plant with up to 25MW installed capacity to be located on the Machakhela River in the Adjara region of Georgia.

Bakhvi 3, located on the Bakhvis Tskali River in the Guria region of Georgia has been fully operational since 2015 with annual power production of 41 GWh. The hydropower plant has been successfully delivering electricity to both the Georgian and Turkish markets. The investment into Bakhvi 3 will finance important capital upgrades and ensure the hydropower plant’s long-term sustainability.

Georgian Wine Breaks Guinness World Record Chemical evidence of wine, dating back to 6000–5800 BC, was obtained from residues of ancient pottery excavated in the archeological sites of Gadachrili Gora and Shulaveris Gora, about 50 km south of Tbilisi in Georgia.

The wine residues were recovered from large-capacity jars, which were probably used for fermentation, ageing and storage. Prior to this discovery, the oldest chemically identified wine from Hajji Firuz Tepe (Iran) dated back to about 5400–5000 BC. These new findings are from about 600–1,000 years earlier, and indicate that wine-making and possibly viticulture were already in place about 8,000 years ago.

Government Announces 71mln GEL Tender for Building Business House State tender has been announced fore constructing a business house in Ortachala, Tbilisi. LLC State Procurement Bureau carries out the state procurement procedure.

The starting price is 71.621mln GEL. The tender was announced on November 24. Tender proposals will be received starting December 14 and the reception process will end on December 19. According to the documents, the project building consists of 5 main and 1 auxiliary floors.

The building will embrace several functional spaces: Service Hall: visitors’ service space.

Commercial space: commercial spaces for retnal, cash-desk, printing and scanning room.

December 4, 2017 #218

Bird From Neverland Founded Travel Agency – Aim Tour Georgia Bird from Neverland is a mascot of newly founded travel agency, Aim Tour Georgia, established in Dubai in 2011, agency opened its offices in Tbilisi last year.

Aim Tour Dubai offers a wide selection of tours, activities, and vacation packages around the world . Aim tour also specializes in varied aspects of visa application; including of course tour packages in Georgia as well as local tours for tourists in Dubai.

The fastest growing B2B network of the company includes the GCC countries and Asia. After the first visit in Georgia , founder of Aim Tour – Hasan Kanan was amazed and fascinated by the country, that’s why he decided to start his own business in Georgia and move and stay in Georgia with his family.

He thinks that Georgia is not as much popular thought what it deserves and believes that this country has got huge facilities to become one of the most successful tourist destinations.

Already From 2016 AIM Georgia appears on the Georgian market. AIM Georgia is special on local market , by it’s creative and successful marketing campaign.

You can find detailed information about daily tours and holidays on our website : www.aim-tour.com

Recently Opened Parsek 1 – Comic Books and Coffee to Bring People with Same Hobbies Parsek 1 – Comic Books and Coffee is newly opened place aiming to gather geek people together, who share same hobbies and interests. As, a founder Danil Mekhanoshin said, he wants to create a place where people find one another, coming out from their stones, enjoy playing video games, getting comic books and have high quality variety of coffee.

CBW had an interview with Danil about the concept of a place and his plans: What kind of atmosphere would you like to create?

I would like to host people who have hobbies, more specifically. I think, it’s a new setting for Georgia to gather comic books, anime, video games, even astrophysical stuff. There are people in Georgia who want to find a place like this, where they can go out from their stones and be provided with all the stuff we offer.

It’s important that they can also communicate with one another.

Second goal is a coffee community, I myself am a big fan

of good coffee, which I like to bring it at Parsek 1, so that we cooperate with Coffee Lab, and get specialty coffee.

Apart from comic books, do you consider having board and video games too?

There is a board game club in Tbilisi already, and I’m not sure I want to compete with them, as it’s a big community of them. I would consider cooperating with them sometimes, let’s say invite them to give some place to play.

If you’re into comic books, there is a big chance that you’re also into video games, so I would like to manage space for that activity too.

How was the process of launching business in Georgia as an expat?

Actually, it was quite easy, you don’t come across hard bureaucracy here. If you want to start business, all you need to do is sign the paper, you don’t need to go from one lawyer to another and pay a lot of money.

Other than that it’s depended on your financial situation and idea of course.

Innovation and Technology Agency Extends Small Grants Program Innovation and Technology Agency of Georgia has extended the 5000 GEL grant program.

Marketer has taken an interview from Papuna Papiashvili, head of the agency strategic development department, about the program’s target audience, the program objectives and the details applicants should makes focus on.

-Who are presumed in the program’s target segment and how this program will promote the grant seekers?

-The 5000 GEL grant is a good opportunity for entrepreneurs specializing in innovations and technologies, researchers and inventors and stratupers to receive necessary financial resource and undertake efforts or develop the existing undertakings. Key target directions of this program guarantee the mentioned objectives.

-How many beneficiaries will enjoy the grant program opportunities?

-The 2018 annual budget makes up 200 000 GEL. Therefore, we believe at least 40 applications will be satisfied. Naturally, there is probability that applications of less than 5 000 GEL be also submitted to the agency. In some cases, the commission may also conclude that this or that project needs less funds and ask the project author to revise the project budget. As a result, the number of beneficiaries will be more than 40 ones.

December 4, 2017 #218

interview

REGUS, the World’s Largest Provider of Service Offices, Opened New Service Center in Tbilisi

Software Asset Management Microsoft’s Answer to Cyberthreats How secured are intellectual property rights in Georgia nowadays? Laurent Signoret, Central and Eastern Europe SAM & Compliance Director at Microsoft answers our questions.

Development of new technologies, implementation of new services and solutions in business management, significant increase of information environment in which modern society work, requires from public and private sector to pay attention to the security of private information. The pattern of cyberthreats is constantly changing, which results in changing requirements to the methods and means of security as well. Given the above, Microsoft offers to the companies Software Asset Management to leverage cybersecurity risks.

How secured are intellectual property rights in Georgia nowadays, what means exist to defend from cyberthreats, what solutions may be the answer to the existing challenges, about this and many other important things we are going to talk to Laurent Signoret, Microsoft Software Asset Management and Compliance Lead for Central and Eastern Europe, who has recently been visiting Georgia.

What is the purpose of your visit to Georgia?

I cover the Central and Eastern Europe region, which includes 33 countries and I try to visit them all. It’s not easy but I wanted to visit the Georgian team because I have never been here, and this is my first time in Georgia. It is important to see how the team is performing, meet customers, partners, press and see how Microsoft is progressing on the market.

How secure is the intellectual property in the world including the countries like Georgia and what means exist to mount defense against cyber criminals?

There is a group of countries who are protecting intellectual property very well. For example, the countries of European Union have a very strong regulations, enforcement and protection. The North American market and some countries in Asia should be highlighted as well. I think Georgia’s positioning is good, but maybe the difference on Georgian market is between the regulation and how it is enforced within consumers, business, everywhere. So, there are some educational efforts to be made and I think that new generation is probably more understanding of those issues, because more jobs rely on content creation, using the internet and more and more people compete globally. So, I think Georgia in on a good path.

Digitalization is both a challenge and opportunity for the world. Do you think this process has increased the number of cyberattacks?

Yes of course. Everything is digital now and every industry is kind of disrupted by digitalization. For example, tourism industry is disrupted by Airbnb, we saw taxi industry disrupted by Uber. Probably the next big industries that will be disrupted are banking system, health, and education.

You know, education system works will old-school way: going to the school with the books, preparing the homework… In 10 or 20 years all this will be disrupted by digitalization. So, there are lots of opportunities, changes happening already and of course many new risks appear because everything is interconnected online. Data is the center, the new oil and there are lots of people looking to steal the data, use it, take control of networks, penetrate passwords and banking system.

There was a big example of Equifax cyber-attack

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“Do what your business needs, we will make your working space comfortable”

in US. The personal data of 140 million citizen was stolen and the most interesting thing in that case is that Equifax moved rapidly from victim to the bad guy because they didn’t protect the data well enough. Now people are thinking of suing them for not protecting their personal data. So yes, there are lots of opportunities but also the risks as well.

Today 93% of the money is digital and only 7% coins and paper money and of course the bad guys go where the money is.

I think that cyber security is a top concern for all organizations and the answer of Microsoft is Software Asset Management because it puts you in the control seat.

In one of the interviews you said that the attractiveness of a country for investors is directly tied with protection of intellectual property. Do you think that intellectual property of investors is under threat?

When you want to invest in a country that you don’t know very well you look at several indicators: GDP per capita, corruption rate, economy growth rate and many things, including: “how my intellectual property is going to be protected in this market?” And you might choose the country which protects the intellectual property the best way. If you can’t protect your patents you might want to invest elsewhere.

Can you tell us your impression about Georgia in this field?

I think that in Georgia it is not a problem – the country is looking to EU regulations and that is the path of the country. The EU requires to comply to the Regulation of General Data Protection, which will be enforced on May 2018. EU is the first group of countries that imposed a very high set of regulation on privacy and security on itself.

You can say – we don’t really care, we are not the part of EU but that will be wrong because if you want to trade with EU countries you will need to comply with this regulation as well. Microsoft is the first IT provider which said it would commit to the EU regulation although Microsoft is an American based company.

What means should the private sector turn in order to resolve the issue and how important is the cooperation between public and private sectors?

To be stronger in this area, it needs a strong publicprivate partnership. On one side you see public sector which makes the regulations, rules, laws and then you have the people making the business on a free market that needs to be regulated.

They need to understand each other.

I can give you a French example: in France there is a very strong culture of intellectual property protection which dates back to long time ago because of luxury industry. The first ones who went to the government saying, “you need to protect our brands and logos” was the luxury industry.

They established the coalition of luxury goods and it grew to an alliance of private sector represented by Union des Fabricants, which is a private institution. Union des Fabricants talks directly to the government agency, which is transnational agency of cross ministries empowered to protect IP. Let’s say – if there is a ship coming from China and it is arriving in the port of France the custom can call to Union des Fabricants, which can also call to representative of any company to check the goods. We extended that to music industry, movie industry, software and that works very well.

The Georgian state agencies were using the pirate software. Has the situation changed during the last years?

Yes, it changed dramatically. The central government of Georgia now has an agreement with Microsoft which covers all software needs of Ministries and Municipalities. It has been almost 3 years now and Georgia is the first country in your region which obliged itself to use only licensed Microsoft software. So, you can’t say that Georgian government works with pirate software.

“

I think that in Georgia it is not a problem – the country is looking to EU regulations and that is the path of the country.

The EU requires to comply to the Regulation of General Data Protection, which will be enforced on May 2018. EU is the first group of countries that imposed a very high set of regulation on privacy and security on itself.

“

It’s not easy but I wanted to visit the Georgian team because I have never been here, and this is my first time in Georgia.

It is important to see how the team is performing, meet customers, partners, press and see how Microsoft is progressing on the market.

Regus, international provider of services offices worldwide, has entered the Georgian market. The company offers comfortable and ideal working environment, adapted to consumer needs on Freedom Square in Tbilisi, the most prestigious, active and dynamic part of the capital city (address: Leonidze Street N2, Business Center Tabidze 1, 4th Floor).

Regus meets the demand on flexible and agile working environment for all type of businesses. Newly renovate A-class offices, flexible and simple terms of payment, modern IT infrastructure, meeting rooms, shared working space, administrative services, access to 3000 business centers of Regus worldwide all these services important for successful operation of small, medium and major business companies.

Everything is close to the Regus Business Centre – high-class hotels, cafes, restaurants and shops, and all these creates ideal environment for both – work and leisure.

«We are happy that our global network broadens and a new service center has opened in Tbilisi, the capital city of Georgia, where business companies and businessmen will be able to receive Regus services. Ideal working environment, easily accessible location, broad range of administrative services, flexible and simple payment terms - this is the Regus offer to local and foreign business people and companies. We care to make their working space more comfortable so as business companies receive required services without wasting time and taking additional expenditures.

Do what your business needs, we will make your office comfortable», Rusudan Chakvetadze, Regus representative in Georgia, talks about the importance and necessity of the Regus operation in Tbilisi.

Regus business center is an ideal drop-in location for businessmen, who move from one meeting to another during the day. It also provides ideal environment for business visitors of Tbilisi. The Center fully satisfies the service office standards and this is the best opportunity for business visitors, who want to operate on Georgian market without additional, administrative procedures and investments, under simple terms and flexible payment terms.

«Over the past period Georgian economy developed fast. Business environment has changed and Georgia has become a more comfortable location for domestic and foreign businesspeople and investors.

Regus is represented in more than 1000 cities worldwide and Tbilisi is among those locations, with a modern, flexible and comfortable working environment. REGUS has the huge experience in providing best services to customers. Large multinational corporations, small and medium size business companies, independent consultants and businesspeople – Regus gained 2 mln loyal customers worldwide over the past 30 years. », Regus representative in Georgia Rusudan Chakvetadze said.

Founded in Brussels, Belgium, in 1989, Regus is based in Luxembourg and listed on the London Stock Exchange.

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December 4, 2017 #218

December 4, 2017 #218

world

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Turkey imposes anti-dumping duties on Chinese steel imports

Azerbaijani company invests $25M in reconstruction of Russian sanatorium Roughly 1.5 billion rubles (about $25.6 million) is planned to be spent on reconstruction of the abandoned sanatorium “Akademichesky” in the Russian city of Kislovodsk.

The Azerbaijani company Karat Holding will engage in the project, TASS reported citing the press service of the city administration.

“The administration of the resort city is in charge of transfering the sanatorium from the federal property to the regional one, spending 1.5 billion rubles on the reconstruction of the sanatorium.” The start of the investment project is planned for 2018. The new treatment and recreation facility will accommodate 350 tourists,” the report reads.

The press service added that the sanatorium was built in 1934, but since 1994 it has been abandoned. “In April, at the 16th international tourist exhibition in Azerbaijan AITF-2017, a tripartite agreement was signed between the government of the Stavropol Oblast, the administration of the Kislovodsk resort city and the head of the Azerbaijani group of companies Karat Holding, Taleh Gasimov, ,” the administration noted.

This is not the first Russian enterprise operating in the sphere of tourism, where Azerbaijani entrepreneurs recently invest.

Thus, according to the data of the Eurasian Development Bank, in 2016 businessmen from Azerbaijan invested $ 25 million in the construction of the “Istochnik” sanatorium in the Stavropol Territory and $ 33 million in the construction of the Ene-Sai hotel complex in the Republic of Tyva.

Swiss investors interested in financial, pharmaceutical, winemaking, IT fields in Armenia Switzerland is interested in deepening the relations with Armenia in economic field, Ambassador of Switzerland to Armenia Lukas Gasser said during the “Armenian-Swiss Business Day-2017” conference, reports Armenpress. “This year marks the 25th anniversary of establishment of Armenia-Switzerland diplomatic relations.

During these years not only the diplomatic, but also the economic relations have developed. This year the trade turnover volume between the two countries comprised 170 million Swiss francs”, the Ambassador said.

According to him, Armenia is among the small countries in the Caucasus, but is themost active in the region. Switzerland has uite good results with Armenia in cooperation platform. The Ambassador noted that Switzerland is in the list of top ten countries that made investments in Armenia. He expressed hope that the current results will further improve in the future.

In total, the regulator has provided 11 licenses for construction of solar plants of total capacity of 1 megawatt.

Turkey has imposed anti-dumping duties on Chinese flat non-rolled steel imports at levels of 16.9 percent-22.6 percent, the Turkish Official Gazette said on Nov. 29.

The duties are imposed at a level of 16.89 percent for Jiangyin Xingcheng Special Steel Works Co. Ltd. and 22.55 percent for other companies, according to the Official Gazette, which announces Turkish state regulations and rulings, as reported by Reuters.

A probe on such imports from China was commenced in December 2016 by the Economy Ministry in line with the request of Turkey’s steel giant Erdemir. In a note, İş Investment said the share of flat non-rolled steel products in Erdemir’s sales was not more than 3 percent and the recent development would make a quite limited impact on the company’s stocks.

Erdemir’s stocks rose 1 percent to 8.72 Turkish Liras in early trading in the Istanbul main stock exchange.

Turkey to set record in steel production Meanwhile, Turkey expects to set a record in

steel production by the end of 2017, the chairman of Turkish Steel Producers’ Association said on Nov. 29. “We foresee a record in steel production by exceeding 36 million tons by the end of this year,” Fuat Tosyalı told staterun Anadolu Agency.

He said a market boom in China and the intensity of domestic infrastructure investment played significant roles in increasing steel production by boosting demand.

Turkey’s crude steel production rose 13.3 percent on an annual basis in the first 10 months of 2017, reaching 31.05 million tons, according to the association’s latest report released on Nov. 16. “The government is still in a position of being the biggest employer. It has serious infrastructure investments. Meeting its steel needs is our duty,” Tosyali stated.

He said they will continue investments in 2018 as well, contributing to employment, economic growth and exports.

“We believe that we will have a more dynamic year in 2018,” he added.

Prince Harry Just Gave an $80 Million Gift to the U.K. Economy

Bitcoin slides amid rollercoaster ride The price of digital currency Bitcoin has fallen sharply in a period of wild trading since it passed the $11,000 mark a day ago.

Bitcoin is now around $9,600, down about 16% from the record $11,434 (£8,500) it hit on Wednesday.

The digital currency is used by some people to pay for things online, but most users see it as an investment.

On Wednesday, a Bank of England deputy governor warned “investors should do their homework” on Bitcoin.

There are two key traits of Bitcoin: it is digital and it is seen as an alternative currency.

Unlike the notes or coins in your pocket, it largely exists online.

Secondly, Bitcoin is not printed by governments or traditional banks.

A small but growing number of businesses, including Expedia and Microsoft, accept bitcoins - which work like virtual tokens.

However, the vast majority of users now buy and sell them as a financial investment.

At its peak, Bitcoin had increased by 1,000% from the $1,000 value at which it started the year.

Bitcoin is “prone to wild swings”, partly because it is not well regulated and because there are fewer traders, said Dr Garrick Hileman of the Judge Business

School at University of Cambridge.

The trading over the past day “was a rollercoaster like nothing I’ve ever seen,” said Neil Wilson, a financial analyst at ETX capital in London.

He said part of the volatility was due to small investors “with no market experience” buying and selling the coin.

“There is no way to discern what fair value is - it’s so incredibly speculative and it is so new and not properly understood.”

Critics have said Bitcoin is going through a bubble similar to the dotcom boom, whereas others say it is rising in price because it is crossing into the financial mainstream.

On Thursday, Randal Quarles, the Federal Reserve’s vice chair for supervision, warned that digital currencies like Bitcoin could pose “more serious financial stability issues” if adopted widely.

Financial regulators have taken a range of views on the status of digital currencies and their risks.

Sir Jon Cunliffe, the Bank’s deputy governor for financial stability, said Bitcoin was “not of a size that would be a threat to financial stability” or a risk to the UK economy.

But he also told the BBC on Wednesday: “People need to be clear this is not an official currency. No central bank stands behind it, no government stands behind it.”

When British royal Prince Harry and American actress Meghan Markle announced their engagement on Monday, the U.K.’s souvenir firms sped into action. Royals are big business for the U.K., and one analyst expects this year’s wedding will amount to £60 million ($80 million) in additional sales.

“The design team have been working very hard,” said Pamela Harper, chair and CEO of London-based Halcyon Days, which will release commemorative china products once the date has been set. Kensington Palace has said the wedding will be in May 2018, but the exact date hasn’t been announced.

Harper learned about the engagement when a breaking-news alert buzzed her cell phone, but the announcement had been well telegraphed by the British press for weeks.

Halcyon Days had been developing ideas for products, discussing colors and designs.

“Royal weddings tend not to have a long lead time,” she said. “We need to get ahead of the game.” The haste to push out themed trinkets and tchotchkes is determined by the size of the potential prize.

The marriage of Harry’s older brother, William, to Kate Middleton in April 2011 boosted the number of visitors to the country by 350,000 that month alone, according to to the U.K. Office of National Statistics.

That wedding accounted for a £527 million increase in U.K. retail spending, including £199 million on wedding souvenirs and memorabilia on the public holiday, according to an estimate from the Centre for Retail Research, a British firm. (Prime Minister Theresa May’s Conservative government has ruled out a bank holiday this time around.)

The center’s director, Joshua Bamford, said the economic bump will likely be less pronounced for Harry and Markle’s big day.

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December 4, 2017 #218

December 4, 2017 #218

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

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,

15 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

75 Agmashenebeli Ave. Tbilisi Tel: 577 18 27 87 Email: hostelmtevnebi@yahoo.com

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

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

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December 4, 2017 #218