Caucasus Business Week # 239

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May 28, 2018 - www.cbw.com

# 239

Georgia's 100th Anniversary of Independence

p.4

Employment rising since 2009, but citizens still complain about joblessness

“The 2014 census showed a population decline tendency amid rising urbanization. Specifically, the ratio of the urban population rose to 56%-57% from 52%, and unemployment levels in urban areas are much higher compared to villages. Levels of unemployment are about 23% in cities and 5% in villages.

p.6

Summer Brings New Products from Ice Cream Companies

Ice cream production should be under constant control. As for competition with low-quality and low-cost products, Barambo representatives said that they offer high-quality products for low prices, and therefore are competitive on the market.

p.7

10 key facts to prepare businesses for GDPR

1. Awareness Key decision makers in companies must be familiar with that current legislation is changing to new GDPR rules. Companies in advance must point out departments, division or sphere of its activity which might have compliance difficulties to GDPR. It will result optimization of recourses, since if ...


News Twenty-two Slovak Investors to Arrive in Georgia On May 25 a business conference held in Tbilisi and 22 Slovak investors attended to meet with hundreds of Georgian businessmen.

BTK to Shorten Transportation Time between China, Europe The Baku-Tbilisi-Kars (BTK) route within the framework of the Silk Road will ensure the economic growth of the whole region, reducing the time of transportation between China and Europe by about 15 days.

Kuwait, Oman and Saudi Arabia Airlines Will Enter Georgian Air Market in June Three new airlines: Salam Air, Oman’s national airline; Jazeera Airways, Saudi Arabia’s national airline; and Flynas, the national airline of Kuwait will enter Georgian market from June.

Tochinoshin Defeats Sumo Legend Hakuho Georgian Sumo wrestler Tochinoshin Tsuyoshi, defeated Mongolian 40-time champion and absolute record holder HakuhōShō. Tochinoshin had to beat Hakuho in 25 matchups.

TBC Bank Director NikolozKurdiani Sells Shares TBC Bank Group PLC said that NikolozKurdiani, deputy chief executive officer of JSC TBC Bank sold 4,500 shares at a price of 1,743.00 pence per share on last Friday, at a a total of GBP78,426, Alliance News reported.

Bank of Georgia Posts 18.8% Rise in Q1 profit Bank of Georgia Group Plc on Monday posted an 18.8 percent rise in first-quarter profit, driven by its banking and investment businesses, on the back of strong macroeconomic performance and business outlook in Georgia.

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New Regulation on Real Estate Valuation A new regulation regarding real estate valuation will come into force on 1 June. The decree on Real Estate Valuation Instructions for Commercial Banks was approved by the President of the National Bank of Georgia on 14 May. The project, which was initiated in January 2017, involved commercial banks, representatives from international valuation companies, as well as an independent expert.

Colliers International Prepares 7 Investment Proposals for Privatization Project In agreement with the Entrepreneurship Development Agency-Enterprise Georgia under the Ministry of Economy and Sustainable Development, a global real estate services company Colliers International Georgia developed investment proposals for large state-owned properties in Georgia. The project covered seven properties at various locations including Akhtala health resort, Goderdzimountain, Kobuleti and Libani spa resort. The project also encom-

UN Issues Stamp in relation to 100th Anniversary of Independence of Georgia KakhaImnadze, Georgian Ambassador to UN, introduced stamp issued by UN in relation to the 100th anniversary of indepen-

Design Company BergerABAM to Develop Anaklia Seaport Design The world’s one of the leading designing and building companies BergerABAM has won international tender announced for preparing

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili WWW.CBW.GE Address: Aleksidze Street 1 Sales: Mob: +995 591 01 39 36 Email: caucasianbusiness@gmail.com Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Copy Editor: Ellie Rambo Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili, Economic columnist: Andria Gvidiani; Technical Assistant: Giorgi Kheladze;


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Employment rising since 2009, but citizens still complain about joblessness

May 28, 2018 #239

In 2017, the unemployment index in Georgia declined by 0.1% compared to 2016, and was 13.9% in total. According to Geostat, the national statistics service of Georgia, the country is seeing a tendency towards reduction in unemployment. The unemployment level has dropped to its lowest point in the past 13 years. According to the statistics department, the last 15 years' indicators changed. The 2017 unemployment numbers were based on 2002 census results, while the 2018 indicators were recalculated using the 2014 census. According to the new methodology, the unemployment level in the first quarter of 2018 was 14%, while the 2017 indicator after recalculation was 13.9%. The 2016 indicator was 11.8% by the previous calculations.

Unemployment Declines Slightly

The highest unemployment is recorded in Tbilisi, and has increased by 1.2%. The Imereti Region is second, with 1.6% unemployment, while Shida Kartli and Kvemo Kartli Regions follow, with 2% and 3.5%, respectively. The major contractions in unemployment were recorded in Adjara and Samegrelo-Zemo Svaneti Regions – 5.8% and 3.4%, respectively.

“The 2014 census showed a population decline tendency amid rising urbanization. Specifically, the ratio of the urban population rose to 56%-57% from 52%, and unemployment levels in urban areas are much higher compared to villages. Levels of unemployment are about 23% in cities and 5% in villages. Growth in the ratio of the urban population, naturally, preconditioned higher unemployment levels in the whole dynamic order,” Geostat Executive Director Gogita Todradze said. According to Geostat indicators, the self-employed constitute a majority of employed citizens, but over the past four years a downturn in self-employment was recorded.In 2017 the ratio of self-employed citizens was 51.7%, down 1.5% from the previous year. Self-employed people were 3/5 of the total employed citizens, while the number of hired employed citizens made up the

It is noteworthy that in 2017 the highest unemployment level was recorded in the 20-24 year old age group (29.6%). Unemployment in this group declined by 3.2% from 2016. Traditionally, the highest unemployment levels are recorded in the 65 year old age group, the main reason being related to comparatively higher levels of inactivity. Employment has been rising over the past nine years. Last year had the lowest unemployment levels in 13 years, but social surveys show that unemployment remains a key problem for the population. 60% of Georgian citizens consider themselves unemployed, the NDI's report from January 2018 stated. Eight years ago, more than 70% of Georgian citizens considered themselves unemployed, so this

Unemployment rate, % 17.9

16.5

18.3

16.9

17.4 16.3

17.3

17.2

15.0

Unemployment Rate by Countries, 2017, % 30.0%

16.9 14.6

15.1

remaining 2/5. A majority of the self-employed work in the agricultural sector. For comparison, in EU countries, the percentage of those employed who are hired is 85%, and self-employed citizens are 15%. The ratio of the self-employed is four times higher in Georgia than the EU, said Soso Archvadze.

25.0%

14.1

14.0

13.9

14.6

20.0%

15.0%

12.4

12.0

10.0%

11.8

5.0%

2008

2009

2010

2011

2012

2013

2014

2015

2016

indicator has declined by 10%. What causes such a huge difference between official indicators and survey indicators? The methodology for the calculation of employment does not reflect reality in developing countries. A majority of Georgian citizens have low-paid and/or unstable jobs, and therefore do not consider themselves employed. For example, according to the 2017 indicators, only 1.18 million persons have declared incomes, including 20% (230,000 citizens)

2017

0.0%

– of 1,200 GEL per year. This signifies that monthly incomes for many were no more than 100 GEL. About 120,000 citizens declared 1,200-2,400 GEL as annual income, which is no more than 200 GEL a month, on average. The number of comparatively rich citizens is low, and their annual revenues exceed 60,000 GEL (more than 5,000 GEL a month).There are only 9,614 such citizens in this category, or 0.6% of the total number of Georgian citizens. Merab Janiashvili


Rector Mikheil Batiashvili from Business and Technology University on Using Tools of the Future Silicon Valley Tbilisi is the first private high-tech center that combines a business and technology university with multi-million international employment platforms, a business incubator and accelerator, tech hubs, an IT Academy, and above all, carries out projects that enhance awareness of the country worldwide and demonstrate potential on global markets. BTU Rector Mikheil Batiashvili discussed current projects with CBW: The launch of the best Swiss University ‘’Les Roches’’ is the first of its kind in Georgia to get such high-level education, what kind of opportunities does it give students? Programme that Les Roches implements in Georgia is called: Executive Program in International Hotel Management. Students will get ‘’Les Roches’’ diploma, which is the highest level in this field. This is the first precedent not only in Georgia but in the region. We want to make Georgia a hub, where people will arrive from neighboring, eastern or any countries to get high-level education. This action will positively affect tourism development as well. Besides, it enables locals not to leave the country in order to get well-educated, and have access to programmes on BTU base. One-year course is an analogue of programme in Switzerland, covering both theoretical, as well as practical, works. Along with tourism growth, it’s important to be ready for such positive change; train adequate, eligible, qualified staff for this sector, both middle and high; and maintain development and sustainability.

What are the projects underway in the direction of implementing Blockchain technologies in Georgia?

You’ve signed a memorandum with ‘’Microsoft’’ as well, what directions does this agreement cover?

Emercoin-Bitcoin pilot project was created for Business and Technology University, and it will be available for other educational centers too. Students will be able to store their diplomas and other documents safely online.

After signing the memorandum with “Microsoft,” company's representatives visited BTU to discuss the stages of the project implementation and detailed plans with specialists.

Bill Tai’s visit for public lecture and signing the contract was very important for us! He is one of the most famous venture capitalist and investor of Silicon Valley. We managed to use such perspective technology, the future tool, as it’s called “new internet” and it’s rapidly developing. With the help of company “Bitfury,” we happened to be one of the first universities to launch such innovative technology. We are planning to take it to different levels and directions, where diplomas, certificates issued by us will stored to the safest platform. This is just one part of this direction and we are planning to meet experts for further development and to take more benefits out of it.

We want to make the search process of business easy and convenient. The Digital Silk Road project aims to make Georgia a modern silk road epicenter, and accelerate the development of the country in a digital direction in order to become a regional leader and a major player in the field of electronic trade technologies. The project will also assist in the development of innovative ideas in computer science and IT, as well as help business personnel, students, and business startups. We will be ready to launch the digital Silk Road joint-trading platform very soon. By Ninna Gomarteli

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Summer Brings New Products from Ice Cream Companies The ice cream business is gaining momentum for the coming summer. What products do ice-cream companies offer to clients for the summer season, what are their expectations in terms of sales, how competitive is the market and what are the challenges for these companies? Apparently, ice cream producers are beginning the new season with new assortments. Besides new products, the founders of companies and their representatives pay special attention to quality control. In 2018, ice cream companies recorded growing sales compared to 2017. Sales growth in this business was 15%-20%. Barambo Company The Barambo Company has prepared many new products for the summer season, and will offer a wide assortment of frozen treats. The company has recorded a 20% upturn compared to the same period of 2017. “We will offer banana Eskimo ice cream with strawberry filling. We will also produce raspberry ice cream with mango content.”

“As for Barambo’s brand for children, this year the company is making chocolate Eskimo with vanilla content and strawberry Eskimo with strawberry content. For families, we have produced fresh fruit ice creams, with peach, strawberry and pineapple flavors,” Barambo representatives said. Ice cream production should be under constant control. As for competition with low-quality and low-cost products, Barambo representatives said that they offer high-quality products for low prices, and therefore are competitive on the market. “We constantly pass quality control, and this is a normal procedure to prevent sales of subpar ice cream in the country,” the representatives noted. Luca Polare Luca Polare director Tato Makharadze says that the brand has produced premium-class ice cream for the upcoming summer season. According to the latest information, in March 2018 Luca Polare's sales rose by 10-15% over the sales in March 2017. “We have already started our summer season. Naturally, we have new flavors. For example, a novelty is that we have introduced a premium line,

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which contains such products such as Australian nut,” Makharadze said. The director of Luca Polare talked about competition with low-cost brands, and noted that similar competition is a form of competition. Makharadze said that it is better to eat a better-quality product than low-quality product and pay a comparatively higher price. Vitali Gelashvili, one of the founders of the Pingo ice cream manufacturing company, said that the company's objective is to compete with high-quality brands. The company’s sales in 2018 have risen by about 40% over the previous year. “We have added a new variety of ice cream packed in paper, and it will contain more fat compared to other products on the market. As for competition with top-quality brands, I am sure we have to fulfill more jobs in this respect to boost our competitive potential in relation to them,” Gelashvili said. Clearly, Georgian ice cream companies are greeting the 2018 season with a variety of new products. It will be interesting to see how successful this summer will be for them.


10 key facts to prepare businesses for GDPR From the May of 25 General data protection regulation (GDPR) enters into force. First of all, it should be emphasized that the form of GDPR is regulation rather than directive. It means that GDPR is directly applicable and establishes uniform rules for all Member States. Adoption as a form of regulation will grow legal certainty, extend consumers faith and eliminate administrative burden. GDPR establishes wide territorial application. It covers both organizations that are established in EU and also organizations that are established outside the EU. GDPR has a central point on the question of whether an organization provides its service or goods in EU market. Organizations that are not established in EU, but that offer services or goods to EU citizens, this wide territorial effect will lead them to significant new compliance burdens and associated additional costs. Analyzing this issue should be interesting for Georgian companies as well.

1 1. Awareness

Key decision makers in companies must be familiar with that current legislation is changing to new GDPR rules. Companies in advance must point out departments, division or sphere of its activity which might have compliance difficulties to GDPR. It will result optimization of recourses, since if company face compliance problems till last second, it will be difficult to solve this problems if company does not have information beforehand. 2. Documenting data Companies must document all the personal datas they have. It means to analyze, what type of data is it, how company have received it, how data are used by company and etc. The best way to reach this goal is to use Information Audit (IA). GDPR compels companies to save records at every stage of data processing. GDPR encourages companies to rely on data minimization principle. It means to delete all data that are not critically important for company. It can reach by checking all the data’s that company have and analyzing how important is it for them. Sometimes it is really difficult for companies to delete data’s even if those data’s are useless, but this way of thinking is trap for GDPR. Companies will have less compliance problems if they use

3. Privacy notice Companies have to review their privacy notices and make all necessary changes in order to harmonize it under GDPR. The main idea of privacy notice, is to inform data subject about how companies are using their personal information. Furthermore GDPR have enlarged requirements for companies for privacy notice and added obligation to inform data subjects about on what legal basis are they processing personal information, what are the time period of storage data, and informing data subjects about the right to apply for data protection authority in a case of unlawful processing. One of the most important news is that GDPR requires from companies that above mentioned information must be provided in simple and easy language for data subjects. 4. Increased rights for data subjects GDPR increased data subject’s rights. Beside current rights, GDPR introduce new rights such as data portability and right to forgotten. Data subject’s right to access to their personal information is also increased, furthermore, GDPR enlarges this right by requiring data controllers to respond to data subject’s request with additional information, such as, details of the period for which the data will be stored or even the criteria used to determine that period, and information about other rights of data subjects. Somehow GDPR protects business impose a reasonable fee for 'any further copies requested by the data subject based on administrative costs.' The main idea of charging fee is to prevent a large number of meaningless request to access from data subjects. 5. Data subject’s consent New regulation have tighten rules about consent and companies are not allowed to process personal data without data subject’s consent. GDPR requires that consent must be freely given, concrete, clear and unambiguous. Silence, inactivity and so called preticked boxes as well are not considered as a consent. In terms and conditions, consent must be separated with other provisions. Companies are required to make simple system for data subjects to remove their consent easily. Companies do not need to check and review all existing consents in order to receive new consents. If they think that already received consents are in accordance with GDPR they do not need to receive it again.

6. Children’s personal data GDPR introduced improtand changes and imposed many specific rules regarding children perosnal data. If companies are operating in children segment and offer online service and they are processing children’s personal data under the age of 16, only relying on consent is not necessary. The consent must be received from parents. It means that companies have to think about to create age verification system and also effective ways to receive consent from parents. Interesting is that companies in the field of children’s segment need to write privacy notice in a language that must be easily understandable for children. 7. Breach report Another significant news for business is data breach report. GDPR requires from controllers to report about personal data breach to the Supervisory Authority without unfair delay. Breach report must contain the information about the essence of the breached personal data including, the categories and estimate number of data subjects interested; and the categories and approximate number of personal data records concerned; contact details of the data protection officer or another person’s contact to receive more information; details about consequences of breach; and details about what measures organization took in order to avoid breach. Failing to breach report can cause huge fines for companies, for failing breach report itself and also for breach data protection rules. Companies must be careful and think about developing effective system for detecting and reporting data breaches in time. 8. Increased sanctions. GDPR introduces significantly greater sanctions. Fines are divided in two categories. First is a lower amount of fines and second is higher amount fines. According to article 83 paragraph, 4 fines could be up to 10 000 000 EUR, or in the case of an undertaking, up to 2 % of the total worldwide annual turnover of the preceding financial year And the second category, according to paragraph 5 fines could be up to 20 000 000 EUR, or in the case of an undertaking, up to 4 % of the total worldwide annual turnover of the preceding financial year.

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May 28, 2018 #239

9. “One stop shop“ principle One of the most significant innovation introduced by GDPR is concept of the lead supervisory authority, so-called “one-stop-shop” principle. If a company operates in more than one EU member state, company must determine its lead supervisory authority. Criteria for determining lead supervisory authority is according to where is main establishment of the company. Main establishment is a place where company have central administration, or if it is unknown, the place where decisions are making about processing personal data. In practice this principle will work when company’s process cross –border data’s. In other words, the main idea of this principle is to provide uniform single and flexible structure in order to eliminate bureaucracy for multinational companies operating in different member states. This principle gives such companies opportunity to deal with one single data protection authority 10. Appoint Data protection officer New regulation requires from companies to appoint data protection officer (DPO), in specific situations, who will be responsible for lawful processing and compliance issues. GDPR creates some circumstances where appointing of data protection official is necessary. These circumstances are when processing of personal data demands decent and regular inspection of data subjects; processing of special categories of big data and a regular inspection of a publicly accessible area on a large scale. GDPR does not define the term large scale, but we can conclude that organizations such as credit institutions, banks or all other companies that are involved in data trading will be covered by this article. Companies must find professional and qualified DPO’s in order to fulfill his duty effectively. Beka Kenkadze LLB of Law LLM of Law MA of International Business Law


Natali Nozadze: “PR Specialists need to know what’s going on in the city, in the country, on Mars and on the Moon”

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Interview with the mining company RMG Gold / RMG Copper Public Relations Manager Natalie Nozadze

Why did you decide to enter this field, and what kind of opportunities does this profession give you? I am a journalist, a media manager by profession. Fifteen years ago, I started with TV journalism. From 2003 to 2009, I worked in several programs and projects on several leading TV channels as a correspondent. My years spent in television still remain some of the best memories for me. I started to think about transferring to PR after graduating from a masters programme at the Institute of Public Affairs (GIPA). That’s where I learned and got acquainted with the field of public relations. At first I saw many similarities with journalism, but as I went further, I realized that these two are completely different professions. In terms of career growth, I think PR primarily gives you freedom. Much depends on you: the creativity of your approach, how you plan and develop your PR strategy, what kind of innovations you offer the company you work for. What is it necessary to hold successful communication with the public? Apart from education, I think it's important for a PR specialist to be happy interacting with people. While communicating with a target audience, except for the right messages and content, it’s essential for them to see your sincerity. The recipient should feel that your communication aims to bring positive results to both sides.

Three tips you would give to someone who wants to work in this field. If you decide to work in this field, you should always be at the center of events. A PR specialist should answer all questions about what, where, when and why it’s happening. This is not just about the field, you should know what is going on in the city, in the country, in the world, on Mars and on the moon. From the very first day, it is important to take care of self-development and gain acquaintances. What do you wish you knew before you started your career in PR? Almost all knowledge comes with experience and practice. So before starting the career in PR, you should make sure you really want to be doing this. What is the best way of finding relevant contacts and sources? Finding relevant contacts and trustworthy sources is the most important aspect of our profession. Creating relevant network of people takes years and hard work. In my opinion, the best place to get new business contacts is in an informal environment—at a party, a store, seminars or conferences, the gym—we should try to hold positive communications with people anywhere. How do you prioritize and start your work day? At 9 am I am in the office,

starting to plan the day and following week with my colleagues. No matter how much we plan on Sunday, there is still a lot of spontaneous and interesting events during the next seven days. Today I am in Tbilisi, tomorrow in Kazreti where our company-owned enterprises operate. We conduct various cultural, sport and educational activities. We meet local young people. These people always bring positive emotions. What are the skills a Public Relations Specialist needs? I think this is a great set of skills for a particular person, in a word we call it professionalism. A successful PR manager should have multilateral education. Technical skills are also necessary for preparing audio-visual and multimedia projects. One should be able to manage time correctly and establish proper communication with the public. The PR manager should never get rid of an awkward question and always analyze the feedback that comes from the public. What trait do you value the most in your co-workers? I highly appreciate people who

never forget three magic phrases: hello, thank you and I’m sorry. Teamwork, loyalty, love of work and a good sense of humour creates a successful work atmosphere. What is the best PR practice technology can’t change? The unique vision of solving a particular problem, human relationships and the real emotions that accompany this relationship. These are the elements that technology will never replace. What are some growing trends in the public relations industry? New trends in the field of public relations are found daily, but a PR specialist should properly determine what innovations will bring benefits to her company. I see that corporate social responsibility culture is slowly moving to Georgia, which makes me very happy. The possibilities of social networking are unexhausted, leading a large proportion of PR to new platforms. I think that the progress and development of the profession as well as the whole company is impossible without innovation.


Hairline

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Georgia’s Leading Hair Transplantation Center: 14 years of successful experience An interview with Irakli Bebiashvili, the CEO of hair restoration therapeutic-scientific center Hairline International, co-founder of Transplantology and Trichology Association of Georgia and Hairline International. A member of the Association of Eurasian Trichologists, the Acad. Gr. Mukhadze’s Surgeon Scientific Society, the Georgian Endoscopic Association and the American Association of AHLA. Bebiashvili is a professional surgeon with 25 years of experience. Both experts and patients have named HairLine International as the number-one brand in the hair transplant field. Why do you think they have named your company as a leader in the field, and what does this recognition signify to you? It’s due to multi-year experience, professionalism and a result-oriented team of doctors. Consumers see all these aspects, appreciate them and that's why they give preference to HairLine services. In many European countries we were recognized as high-level specialists in this field, but it is especially important when you are recognized as the number-one brand in your own country. HairLine International is listed in the top ten hair transplantation clinics worldwide. How have you achieved this result? We were included in the list of the world's top ten leading clinics, because HairLine constantly establishes innovative methods and employs innovative technologies to produce a more natural effect. Naturally, preference is given for the team’s professionalism. The HairLine team is staffed with doctors with many years of experience, who have been working in the clinic since its foundation. Through the clinic’s work, we have satisfied thousands of patients,

including leading representatives in show business. The clinic offers a unique method of hair transplantation. Please tell us about this method and if this service is in-demand in Georgia? HairLine International is the only clinic in the South Caucasus where long hair is transplanted successfully, through the most advanced modern methods, without any sutures or scarring. The newest method calls for transplanting long hair by the nonsuture FUE method – this is an impressive step for the perfection and evolution of hair transplants. This method minimizes post-operation discomfort and fills both the patient and the doctor with extremely positive emotions. Everybody witnesses a real effect upon the completion of the operation in terms of hair density and direction, without visual discomfort. The clinic successfully transplants hair in cicatrices, as well as in eyebrow and beard areas. Hair is transplanted from various parts of the body. It is a very interesting and progressive direction to transplant long-hair follicular units, but today, only a few clinics in the world are able to perform these transplants. This operation requires special equipment, a lot of experience and high standards of professionalism from the surgeon and the whole staff. The HairLine team satisfies all these standards, and we showed boldness to take these innovative steps. There are no sutures and consequently, no scarring. Which of the clinic services are the most in-demand? How common are transplants to the eyebrows or beard? Do women also use the services of your clinic? Hair transplantation via the sutureless method is the most popular procedure. 70%-75% of patients prefer hair transplantation with the sutureless method. Forehead correction is also an in-demand operation among women, as well as eyebrow transplants (this has become especially relevant due to recent fashion). I would like to use this opportunity to suggest women give preference to this

method of eyebrow transplantation, because transplanted eyebrows have a natural look and lifelong effect. As for men, beard transplantation is considered one of the most successful procedures. How has the number of patients increased in 2017, compared to 2016? The number of patients grows from year to year, because the skeptical attitude toward hair transplants has disappeared. In past years, men have begun to demonstrate a growing aspiration for self-care, they spend more time on their appearances, and naturally this is reflected in a growth in the It is noteworthy that dermatologisttrichologists apply innovative methods for preventing the loss of hair, including mezo, plasmo and laser therapy methods, which halts the loss of hair, enhances transplanted hair and improves its quality. How affordable are the clinic’s services? Do you encourage patients through any special campaigns? HairLine constantly offers gifts and sales campaigns to patients. New technologies drive lower prices. Our procedures are attainable and affordable, however, this is especially evident during the campaign period. Consultations are always free for patients

How affordable are the clinic’s services? Do you encourage patients through any special campaigns? HairLine constantly offers gifts and sales campaigns to patients. New technologies drive lower prices. Our procedures are attainable and affordable, however, this is especially evident during the campaign period. Consultations are always free for patients Do you serve foreign patients, and what is the ratio of foreign patients? Foreign patients also want to be operated on at our clinic: 30% of patients are foreign citizens. Such a percentage of foreign patients proves we offer high-quality services and guaranteed results. We have particularly simplified consultations for operations that are made long-distance without visiting the clinics, and this is an additional comfort. What innovative services do you plan to offer patients and for company development? In the near future, new projects will be introduced to the clinic through the expansion of the field of services, in not only the aesthetics field. We also plan to open branches in Batumi and Kutaisi.


Georgia is exempt from tobacco smoke

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In what parts of the street is smoking forbidden? What if a driver smokes? According to the Georgian Law on Tobacco Control, smoking is not only forbidden in all buildings and on public transport (except for taxis and motorboats). According to the law, the consumption of tobacco products is also prohibited at educational, childcare and educational-care institutions, libraries, youth camps, children's entertainment centers and other institutions for persons under the age of 18 and surrounding areas, as well in public meetings held for underage people. Smoking is prohibited in medical and pharmaceutical institutions and the surrounding areas, petrol and gas stations and anywhere where flammable substances are stored.

what part of the street smoking is prohibited in, and how to create an environment for the proper execution of the law.

The Head of the Tobacco Control Alliance, Giorgi Bakhturidze, discussed exactly

How should we behave if there is no restriction on the above territories and we see people

Citizens are asking: is it prohibited to smoke in gardens, parks, squares, everywhere? Smoking is forbidden only where people under the age of 18 gather. There are areas of parks with playgrounds, people need to be maximally informed, and warning signs are mandatory within all relevant areas according to the law. The administration that runs such areas should ensure that the warnings are attention-catching. Local municipalities or private property owners should take care to provide textual or other forms of warning.

smoking near children's playgrounds? We need to ask the park’s administration to react. If there is no administration (if I remember correctly, only Vake Park has it on site), we have to explain it to the person, without an argument, that smoking is prohibited. If there is administration but the smoker refuses to react, call the police, who will take care of this issue. A smoker will be fined if he doesn’t obey the police or the person warning him to stop smoking. What should we do if a driver smokes on public transport? The Monitoring Service has detected drivers smoking in yellow and municipal buses. In such cases, the driver or the vehicle owner will be fined 500 GEL. If you see that the driver

is smoking, please call the police and they will decide who to charge with a fine, the driver or the municipal service of City Hall, which manages public transport. Take care of each other and obey the requirements of the law!


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Georgian Economic Climate (Q2, 2018) prepared by PMC Research & ifo Institute Issue 2 | 28.05.2018

Georgian Economic Climate is a joint quarterly product of PMC Research Center and the ifo Institute for Economic Research. In this bulletin, we discuss Georgia’s economic climate as assessed by 30 Georgian economists. The survey was conducted in April 2018, assessing the April-September 2018 period. In the second quarter of 2018, Georgia’s Economic Climate Indicator (ECI) is assessed as positive (41.3). The Georgian economy is categorized under “Boom” with a positive assessment of its economic situation both currently (27.8) and in the future (55.6). Its second quarter of 2018, economists’ appraisals of the Georgian economy improved, compared to the previous quarter (33.1, Q1 2018) and the corresponding period of last year (30.4, Q2 2017).

Georgia Economic Climate, Q2, 2018 100

UPSWING

BOOM

80 Q2/18

60 Q4/17

40

Q1/18 Q2/17

20 Q3/17

Present Situation -100

-80

-60

-40

-20

0

Q1/17

0

20

49

-60

80

100

-20 -40 -60

RECESSION

-100

Expectation

-80

DOWNSWING

According to the semi-annual assessment of Georgian economic challenges, the Georgian economy currently faces the following three major problems: Lack of skilled labor; Lack of innovation, Inadequate infrastructure. Notably, in the fourth quarter of 2017, Georgian experts considered a lack of innovation to be the most severe problem for the Georgian economy. In addition, experts consider there to be least severe challenges faced in the following areas: Legal and administrative barriers for business; Trade barriers for exports; Debt management. Notably, in the second quarter of 2017, Georgian experts considered there to be no challenges regarding trade barriers for exports. In addition, experts predict Georgia’s main economic indicators. According to the results, in the second quarter of 2018, the expected real GDP growth for 2018 is 4.7%. Other main economic indicators are forecasted as follows:

Exchange rates

Trade volume

• • •

Prices are expected to decrease in the next six months;

The Georgian Lari is currently undervalued against the US Dollar, Euro and Yen and approximately fairly valued against the British Pound; The Georgian Lari is expected to depreciate against the US Dollar in the next six months.

• • • •

The export volume is expected to increase in the coming six months; The import volume is expected to increase in the coming six months; The export volume is expected to increase more than the import volume, resulting in an improved trade balance in the next six months.


12

Business News

May 28, 2018 #239

MicroGreen Plans to Create Innovative Land Formula

Georgian Startup Papu Listed in the Top three Startups At Emerge 2018 Belarus

MicroGreen company plans to meet with international investors, the company founder Marita Genebashvili told the Women Narrative TV program. The company is working on innovative product named as IndoorGarden.

Georgian startup PAPU has been listed in the top three startups at the Emerge 2018 conference held in Belarus. Authors of the idea Elene Beridze and Medea Tlashidze announced at Women Narrative show.

Georgian Post Introduces Services Similar to Amazon Georgian Post enables owners of online stores to select delivery terms and conditions themselves thanks to a new service and insure their products in this way.

Project Smart Home Wins European Olympiads YussufNassibov lives in the village of Mughanlo. He goes to Shota Rustavelischool in Rustavi. He had his first contact with invention and science, as well as with Georgian language in this school. Teliani Valley Revenues Rose by 94.4% Teliani Valley revenues rose by annual 94.4%. The growth tendency started after the company launched beer and lemonade production in 2017.

Disney Interested in Georgian Tamashobana Disney is interested in Georgian Tamashobana (Games), which was created by two young Georgian girls, NauSonghulashvili and NiniChikovani. The girls founded the company in 2015 and launched production of Georgian traditional ecologically clean toys.

Out of Town but the Center of the City – Azura Opened in Tblisi

Swiss Tourism and Hospitality School Les Roches to Start Operating in Georgia

Summer is coming. You already wonder: where should you relax and rest after a work day? Due to a lack of time you can’t leave the capital, so the solution is to find the best places in the city.

For the first time in Georgia and the region, the International School of Higher Education will carry out educational activities. The school starts functioning on the base of business and technology. Les Roches entering Georgia was supported by the National Tourism Administration and World Tourism Organization.

Company RMG to Spend 30 Million GEL to Improve Ecological Background The company RMG has launched an environmental project aimed at solving ecological problems. The executive director of the company Johnny Shubitidze said in an interview with “Banks and Finance”. As Shubitidze explains, the company intends to spend 30 million GEL in the total project.

#Becauseisayso Raising Awareness of Hypertension In connection with the International Day of Hypertension, the French pharmaceutical company ‘Servier’ organized a press conference in Georgia as part of the global social project “Talk about the Pressure.”


13 May 28, 2018 #239 EBRD Will Allocate 400 Million USD for Climate Change Adaption The EBRD will allocate 400 million USD in 10 countries for investing in adaptations to climate change. 300 million dollars will directly finance the European Reconstruction and Development Bank, and 100 million dollars will be allocated from the Green Climate Fund. The list includes countries such as Georgia, Armenia, Egypt, Jordan, Moldova, Mongolia, Morocco, Serbia, Tajikistan, and Tunisia. Azerbaijani-Chinese Free Economic Industrial Town to be Established in Baku An Azerbaijani-Chinese free economic industrial town is planned to be established in Alat. Azerbaijani Economy Minister Shahin Mustafayev made the remarks at a meeting with Chairman of the Board of the China Export & Credit Insurance Corporation (SINOSURE) Wang Yi on May 22. New York Stock Exchange Appoints First Female Leader 226 years after the establishment, New York Stock Exchange has appointed its first female leader. Stacey Cunningham will be elevated to the leadership role from her current position of chief operating officer. Her appointment means that both NYSE and the technology-focused Nasdaq exchange will now be run by women. Feeble EU format deflates Zuckerberg “hearing” When Facebook CEO Mark Zuckerberg spent two hours in a hearing with US senators last month, he quipped that he would be fine to continue without a break. But he was not keen to stay much longer than agreed when he met members of the European Parliament on Tuesday (22 May) in Brussels. Russia’s VTB sells insurance business to Sogaz Russian state-run lender VTB has sold its insurance business to Sogaz, which will become the largest insurance company in Russia by a considerable distance, the company said on Friday. The merged company, which will operate under Sogaz's brand, will have Rbs550bn ($8.9bn) under management. VTB chief executive Andrei Kostin said the deal was worth "tens" of billions of rubles, but declined to name the exact amount.

Smart Armenia to provide orders for Armenian IT specialists Business Armenia and Y Republic business club in Moscow initiated Smart Armenia platform, which aims at providing orders for Armenian software developers, web designers, online marketing and other IT specialists. Lira’s plunge places Turkey on edge of financial crisis Turkey’s lira has been in near-continuous decline since Recep Tayyip Erdogan was elected president in 2014 but even emerging market veterans were taken aback by this week’s rout. The currency’s precipitous drop forced the country’s central bank into an emergency interest rate rise late on Wednesday, days after Mr Erdogan excoriated higher borrowing costs before an audience in London. The world’s most profitable banks can be found in India Despite surging bad debt, investors’ belief in the potential of the Indian economy shows in the fact that its newest lenders offer the best returns, and a clutch of private Indian banks are among the world’s most expensive.

Meghan Markle and Harry’s Royal Wedding: How much did Royal Wedding cost? £32 million - estimated cost of the Royal Wedding, including £30 million spent on security 19 - age of cellist Sheku Kanneh-Mason, who was thrust into the world spotlight after he played at the wedding. 100,000 global streams of The Royal Wedding: The Official Album, since Saturday according to Spotify - the most popular track is Karen Gibson and The Kingdom Choir's performance of Stand By Me. 200 Amalfi lemons used in baker Claire Ptak’s recipe for the lemon and elderflower cake. 140 Royal Borough Ambassadors who volunteered to steward the event. 100,000 estimated crowd numbers in Windsor


14 May 28, 2018 #239


15 May 28, 2018 #239 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 Pixel Center, 34, Ilia Chavchavadze Ave. 3rd floor Tel: +995 32 227 62 00 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

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 Oniashvili str. 24, Tbilisi Tel.: +995322 920398; Fax: +995322 920397 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 Embassy of The Republic of Korea 12, Titsian Tabidze Str. Tbilisi 0179, Geogia Tel: (995 32) 297 03 18; 297 03 20;

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

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 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

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

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55,

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

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 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.

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


16 May 28, 2018 #239


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