Georgia ENG

COUNTRY FACT SHEET

GEORGIA

Disclaimer IOM has carried out the gathering of information with great care. IOM provides information at its best knowledge and in all conscience.

Nevertheless, IOM cannot assume to be held accountable for the correctness of the information provided. Furthermore, IOM shall not be liable for any conclusions made or any results, which are drawn from the information provided by IOM. 1

COUNTRY FACT SHEET

TABLE OF CONTENTS TABLE OF CONTENTS I. GENERAL OVERVIEW

1. Conflict causes and background

2. Internally displaced people, IDP villages II. RETURN TO GEORGIA

1. Documentation

2. Regions with no reintegration and return opportunities III. THE ECONOMIC SITUATION AND EMPLOYMENT

1. The Economic Situation

2. Current state of labour market

3. Accessibility of short-term/ occasional jobs

4. Professional Education,Training/Retraining Courses and Centers

5. Labour Conditions

6. Starting new business IV. SOCIAL SECURITY

1. Social Aid - Agency for Social Services

2. Family allowances and access

3. Sickness benefit

4. The Pension System

5. NGOs V. MEDICAL CARE

1. Medical infrastructure

2. Eligibility criteria and access to health care services

3. Health Services for Vulnerable Cases

4. Costs of health care

5. Health Insurance VI. EDUCATION

1. Educational System Structure

2. Evaluation system

3. Recognition of Foreign Diplomas

4. Vocational Training Courses VII. HOUSING

1. Housing space and renting costs

2. Buying Real Estate

3. Social Grants for Housing

4. Housing provision for Vulnerable Cases VIII. INFRASTRUCTURE AND PUBLIC TRANSPORT

1. General information IX. CUSTOMS X. TELECOMMUNICATION

1. Postal services

2. E-mail/Internet

3. Telephone communication XI. SOURCES

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COUNTRY FACT SHEET I.GENERAL OVERVIEW • • • • • • • • • • • •

Population: 4,600,825 (July 2010 est.)

Area: 69,700 sq km Capital: T’bilisi Head of State: President Mikheil Saakashvili (since 25 January 2004); GDP/capita: $4,400 (2009 est.)

Religions: Orthodox Christian 83.9%, Muslim 9.9%, Armenian-Gregorian 3.9%, Catholic 0.8%, other 0.8%, none 0.7% (2002 census) Official language: Georgian 71% Other languages: Russian 9%, Armenian 7%, Azeri 6%, other 7% Ethnic Groups: Georgian 83.8%, Azeri 6.5%, Armenian 5.7%, Russian 1.5%, other 2.5% (2002 census) Life expectancy: 76.93 years Monetary unit: lari (GEL) per US$ - 1.841 (2010) Independence/National Holiday: 9 April 1991

Georgia is a democratic republic with strong presidential authority and centralized governance. The country was among the first republics of the former Soviet Union to declare independence in 1991. Before independence, the country had a relatively strong economy, with a prosperous agricultural sector, and specialized in the export of agricultural products, and energy-intensive industrial products. A number of armed internal conflicts broke out after independence precipitated by secessionist movements in South Ossetia and Abkhazia. The economy collapsed under the impact of the open combats and the loss of both, preferential access to the markets of the former Soviet Union, and large budget transfers from Moscow. The conflicts abated by the end of 1993, when a cease-fire came into effect. Nevertheless conflicts between the Tbilisi based government and the breakaway regions Abkhazia and Tskhinvali/South-Ossetia persist until today.

An attempt by the incumbent Georgian government to manipulate national legislative elections in November 2003 touched off widespread protests that led to the resignation of Eduard Shevardnadze, president since 1995. Elections in early 2004 swept Mikheil Saakashvili into power along with his National Movement Party. In January 2008 Mikheil Saakashvili was elected as a president for the second period.

Since political events of 2003 Georgian economy faced significant positive changes. The state budget increased from USD 350 million up to USD 3.3 billion, the share of foreign trade/commerce increased by 301%. The country is pinning its major hopes for longterm growth on its role as a transit state for pipelines and trade. Although clash between Russia and Georgia in August 2008 and world financial crisis had a great influence on the country’s economy.

1. Conflict causes and background Georgia became independent from the Soviet Union in 1991. At the time, it had some 5.44 million inhabitants. The ethnic composition of Georgia then was 68.8 percent Georgian (including several regional subgroups speaking distinct languages in addition to Georgian, such as Mengrelian), 9 percent Armenian, 7.4 percent Russian, 5.1 percent Azerbaijani, 3.2 percent Ossetia, 1.9 percent Greek, and 1.7 percent Abkhazian (Open Society Institute, 1995, pp.14-15). Soon after, it had to confront two nationalities within its borders demanding their own independence, Abkhazia on the north eastern Black Sea coast, and South Ossetia, north of the capital Tbilisi. The fighting that followed killed about 10,000 people and caused large scale displacement.

Throughout the twentieth century, the population of Abkhazia was multi-ethnic, comprising Georgians, Abkhaz, Armenians and Russians. In the Soviet Union, it was joined to Georgia in 1931 and Georgia then closed Abkhaz language schools, changed place names and 3

COUNTRY FACT SHEET guaranteed Georgians key official positions. Georgia also promoted the resettlement of Georgians into Abkhazia after the Second World War In 1978; however, Soviet authorities reinstated Abkhaz language instruction and assigned official positions to ethnic Abkhaz.

In July 1992, Abkhazia declared its independence from Georgia, a decision quickly annulled by the Georgian government. The following month, on 14 August, Georgian and Abkhaz troops exchanged fire. The conflict escalated, and as Georgian troops occupied the town of Sukhumi, the Abkhaz government fled north to Gudauta, its base for the rest of the war. A year later, Abkhaz forces took back Sukhumi and pushed Georgian forces out of Abkhazia.

The number of those who fled Abkhazia or remained there is highly contentious. According to Georgian government estimates, the population of Abkhazia declined from 535,000 in 1992 to 146,000 in 1997. According to OSCE figures, the population in Abkhazia stood at 225,000 following the conflict, while Abkhazia authorities use the estimate of 315,000.

In 1994 the Georgian and Abkhazian sides, under the auspices of the UN and with the facilitation of the Russian Federation, signed the Moscow Agreement on the separation of forces. A 1,600 Russian contingent patrol Abkhazia, as the Commonwealth of Independent States (CIS) Peacekeeping Forces. They were not complemented by contingents from other countries. The Peacekeeping Forces were mandated, inter alia, to promote the safe return of refugees and IDPs. A Quadripartite Agreement on Voluntary Return of Refugees and Displaced Persons was also signed in 1994 by the Abkhaz and Georgian sides, the Russian Federation, and UNHCR. Over the next years, sporadic fighting between Georgian and Abkhaz troops erupted. One of the worst bouts of fighting occurred in May 1998 in the Gali District of Abkhazia, when an attack by Georgian guerillas on a group of Abkhazian militia led to large-scale Abkhazian response against an increase of such actions, and also drew in Georgian troops. By the time a ceasefire was reached on 25 May, 200 people were estimated to have been killed and most of the Georgian population from Gali, some 40,000 people, had fled again to Georgia, following the destruction of their houses. These people returned to Gali over the next few years.

UN Security Council Resolution 858 established the UN Observer Mission in Georgia (UNOMIG) in order to observe the ceasefire and contribute to a comprehensive political settlement to the conflict. One of the purposes of UNOMIG, as per its mandate, was to contribute to conditions conducive to the return of IDPs and refugees in Abkhazia.

UNOMIG’s contingent was entirely made up of Russians, as peacekeeping was mandated to the Commonwealth of Independent States. Georgia objected to the presence of Russian peacekeepers in South Ossetia and Abkhazia, and in July 2006, its parliament passed a resolution requesting the government to expedite the withdrawal of both Russian peacekeeping contingents.

South Ossetia - the South Ossetian Autonomous Oblast declared its intention in 1989 to raise its status to that of an Autonomous Republic within Georgia. Georgian authorities annulled this decision and further revoked South Ossetia’s status as an Autonomous Oblast. A violent conflict ensued. Following 18 months of chaos and war, some 1,000 are estimated to have been killed, 100 missing, and many fled their homes. There was also an extensive destruction of homes and infrastructure.

Before the 1989-1992 conflict, populations were closely inter-mixed. According to the last pre-war census in 1989, Ossetians living in South Ossetia numbered 65,000, with 98,000 in the rest of Georgia. The overall population of South Ossetia was approximately 99,700, including some 26,000 ethnic Georgians. Following the war, much of the inter-ethnic mixing was lost, and a handful of ethnically mixed villages survived in South Ossetia.

South Ossetia had around 65,000 inhabitants as of 2004. Only 38,028 ethnic Ossetians remained in Georgia proper. This means that up to 60,000 Ossetians left Georgia mainly for South Ossetia or Russia.

In 1992, the leaders of Georgia and Russia signed an agreement that ended hostilities 4

COUNTRY FACT SHEET between informal Georgian and South Ossetian militias, the “Agreement on the Principles of the Settlement of the Georgian-Ossetian Conflict between Georgia and Russia”. The agreement foresaw a ceasefire, a Joint Control Commission (JCC), a quadrilateral body with Georgian, Russian, North and South Ossetian representatives. The JCC was tasked to supervise the agreement, and – inter alia – to devise and carry out measures to facilitate IDP and refugee return.

Following the agreement, a 1,500 Russian/Georgian/South Ossetian peacekeeping force was deployed. Each national contingent patrolled the conflict zone separately, leading to the Georgian perception that the Russian selectively extended protection to Ossetian civilians, while ignoring the minority Georgian population.

According to the 1992 ceasefire agreement, the two sides pledged to create conditions for the return of refugees and IDPs. In 1997, a procedure “on the voluntary return of IDPs and refugees resulting from the Georgian-Ossetian conflict to their permanent place of residence” was agreed by the JCC. In practice, nothing was implemented.

The 1992 ceasefire remained in place until 2004, when Georgia took control of a GeorgianOssetian trading post in order to end smuggling, but angering South Ossetians who drew their income from the market at the same time. A new ceasefire was agreed upon in August 2004, but daily shootings and frequent criminal incidents continued after that.

Following his coming to power in 2004, Georgian President Sakashvili presented a plan for South Ossetia’s wide autonomy, called “Initiatives of the Georgian Government with Respect to the Peaceful Resolution of the Conflict in South Ossetia”. The offer was immediately rejected by the Ossetian leadership. The plan was revived in 2007, again without success. In a bid to gain influence over South Ossetia, the Georgian government supported since November 2006 an alternative de facto South Ossetian administration which appeared when two sets of de facto presidential elections in South Ossetia were held.

The August 2008 conflict - both Abkhazia and South Ossetia have owed their de facto independence largely due to Russian backing. Abkhaz and Ossetians have Russian passports and residency documents, allowing free movement into Russia. They also receive Russian pensions, which are higher than Georgian ones. The currency is the Russian ruble. According to the International Crisis Group (ICG), Russia’s interests have involved since the early 1990s. At the time, Russia seemed eager to stop the fighting and to facilitate a status agreement, as it was concerned that independent Republics could set a precedent for its own volatile North Caucasus, especially Chechnya.

Relations between Russia and Georgia significantly deteriorated since mid-2004, as Georgia accused Russia of de facto annexation of its territory through the distribution of passports and pensions, but also financial support and military training. In December 2005 and 2006, Russia banned imports of Georgia’s agricultural products and alcohol, dealing Georgia a significant economic blow. In 2006, Russia began talking about Kosovo as a precedent for international recognition of Abkhazia. Relations soured further in 2007, following various security incidents and in August 2008, conflict broke out between Georgia and the Russian Federation over the fate of South Ossetia. Hundreds of people were killed and tens of thousand displaced. An internationally-brokered ceasefire came a week later, but Russia recognised the independence of both regions following the crisis.

Forces on both sides in the conflict appear to have killed and injured civilians through indiscriminate attacks on Gori and the South Ossetian capital Tskhinvali. Thousands of Russian soldiers remained based in both regions in the aftermath of the crisis and Russia recognised the independence of Abkhazia and South Ossetia. Following the signing of border pacts between the Russian Federation and the breakaway regions of Abkhazia and South Ossetia at the end of April 2009, Russia assumed immediate responsibility for guarding the regions’ de facto borders with Georgia, effective for 10 years.

The August 2008 conflict changed the context in which UNOMIG was operating. Georgian withdrew from the Moscow agreement, and the Collective Peacekeeping Forces of the CIS departed. According to various reports, UNOMIG had not been able to go to South 5

COUNTRY FACT SHEET Ossetia and Abkhazia since August 2008. In June 2009, the UNOMIG mission ended when the UN Security Council was unable to reach an agreement in order to extend the presence of the peacekeeping mission, due to Russia’s veto.

2. Internally displaced people, IDP villages The Ministry of Refugees and Accommodation of Georgia (MRA) http://www.mra.gov.ge/ implements the state policy on refugees, asylum-seekers, internally displaced persons, repatriates, victims of the natural disasters and other migrants in terms of their social and legal protection, accommodation and overall migration control.

People in Georgia have been displaced by several waves of conflict. Fighting which erupted in the early 1990s in South Ossetia was soon followed by conflict in Abkhazia.

More recently in 2008, conflict broke out between Georgia and Russia over South Ossetia.

While negotiations continue, the conflicts are unresolved and their settlement remains elusive. At the end of 2009, at least 220,000 people were displaced in Georgia proper, including up to 22,000 people displaced in 2008. There were also some 10,000 IDPs in South Ossetia and an unknown number in Abkhazia. By the end of the year, over 100,000 IDPs displaced in 2008 had returned to Abkhazia, South Ossetia and areas adjacent to South Ossetia. Around 45,000 people displaced in the 1990s, whom Georgia still counted as IDPs, had over the years returned to Gali district in Abkhazia.

For the year 2008 monthly allowance for IDPs and refugees living in state-run collective centers is 22 GEL and for those living in rented apartments – 28 GEL. For the year 2008 monthly allowance for electricity consumption of IDPs and refugees living in state-run collective centers is centralized and is 13.48 GEL in Tbilisi and 12.98 GEL in other regions of Georgia.

Administration, communal and consumer service fee for the state-run collective centers for IDPs and refugees is 4 GEL per one IDP or a refugee per month.

For additional Information contact Agency for Social subsidies; 51 Ivane Javakhishvili Street, 0102 - Tbilisi; tel. +(995 32) 91 00 46 fax: +(995 32) 95 55 83 www.ssa.gov.ge/ or the of the Ministry of Labour, Health and Social Affairs №30 K.Gamsakhurdia ave., Tbilisi 0102, tel. (+995 32)221 235, 387 071, hotline 94 34 98 fax: (+995 32)770 086 http://www.medportal.ge/hm/eng/index.php II. RETURN TO GEORGIA 1. Documentation Passport of Georgian Citizen is issued or its validity is extended by Consulates or Diplomatic Missions of Georgia abroad. Application for passport issue should contain the following documents: • ID card of citizen of Georgia, or residence permit certificate for stateless person • 2 photos 3.5X4.5 sm (current photos in colour) • Official fee cheque from bank for passport issue If the applicant is under 18, or is incapable, the following documents shall be submitted: • The notary document of his or her guardian is obligatory.

• Birth certificate original if the person is under 16 • ID, if the person is or about 16 • 2 colour photos 3.5X4.5 • official fee cheque from the bank for passport issue

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COUNTRY FACT SHEET Travel Document to return to Georgia is issued by Consulates or Diplomatic Missions of Georgia abroad. The document is granted in cases of loss, expire, damage of ID to citizens of Georgia, persons without citizenship who lives permanent in Georgia, foreigners who lives permanent in Georgia, Georgian sailors. Immediately such document will be issued if person provide: • • • • •

ID card of Citizen of Georgia Expired Passport of Georgian Citizen, that can’t be extended Certificate of domicile Sailor’s certificate Pilot ID

To prove the Citizenship of Georgia a person can provide following documents: • Military service verification card or its copy • Driver License or its copy • Birth certificate or its copy • Copy of ID card of Citizen of Georgia • Letter from tourist group leader that proof the identity of a person If competent authority in consulate is not persuaded about a person’s being citizen of Georgia, s/he may be interviewed. The return certificate is valid for a month, though its validity may be prolonged for another month only once. The certificate should be issued as soon as possible, but within 45 days from submitting the application. Foreigners can reside in Georgia on the ground of visa or residence permission (temporary or permanent). At the territory of Georgia there is possibility to extend visa’s validity only for diplomat and labour visa categories (responsible authority-Ministry of foreign affairs of Georgia).

Price of obtaining necessary documents Official consular fee for passport issue is 60 USD Consular fee for passport validity extension is 15 USD Issuing Georgian Citizen’s Identification Document – 20 USD Issuing certificate for returning to Georgia – 35 USD Travel Document to return to Georgia consulate fee is 35 USD (60 GEL).

2. Regions with no reintegration and return opportunities Abkhazia and South Ossetia are not controlled by the Georgian Government. However, the Abkhaz de facto authorities are willing to let ethnic Abkhazs come back to the region, in order to increase their demographic strength. They are however strongly opposed to the return of ethnic Georgians to other parts of Abkhazia. As stated before, return of Georgians to the Gali Region (ethnic Georgians in Abkhazia) is wished by the Georgian government, but is still highly dangerous. However, 45,000 ethnic Georgians have returned to eastern Abkhazia, including 10,000 to Gali town from some 80,000 who fled into Georgia during the Georgia-Abkhaz conflict of 1992-1993. Because of an unresolved problem with identity papers, returnees are unable to access social and health services. Although villages of buffer zone are not bombed anymore, the residents of the villages are still living in feeling of constant fear. Gunfire in the villages bordering with conflict zone is still heard; people cannot relax and they shelter their relatives in other villages. Most of the villages adjacent and/or close to ABL (Administrative Border Line with so called “South Ossetia”) are within high risk level.

Tskhinvali region is under the control of Russian military troops.

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COUNTRY FACT SHEET III. THE ECONOMIC SITUATION AND EMPLOYMENT 1. The Economic Situation The government of Georgia is eager to pursue reforms which will help attract foreign investment into the country. The World Bank has identified Georgia as the world’s leading economic reformer, in recognition of the country’s success in accomplishing reform. GDP at current prices increased 1.9 times in 2004-2008.

Nonetheless, poverty is the most acute social problem that contemporary Georgia faces.

Unfortunately, there has been no clear sign of improvement in recent years. The level of social differentiation in the population of Georgia and the persistence of inequality is also very high, in terms both of levels of consumption and of incomes. The sharp growth of social differentiation makes it much harder to achieve greater social stability in the country.

Poverty in Georgia is driven by unemployment and low incomes. In 2000-2008, the average wage of hired employees and the income of households from hired labour increased significantly but the share of wages in the total income of households did not exceed 31%. Besides, disparity of wages is extremely high. According to research conducted in September 2006 by the State Department for Statistics, those on the highest wages (more than 2000 GEL (814 EUR) earn 317 times as much as the lowest-waged (less than 20 GEL (8 EUR)). 44% of employees earn less than the subsistence minimum. Many families in Georgia support themselves from self-employment. Their income is mainly consumed in meeting the necessities of life.

2. Current state of labour market According to the data of the State Department of Statistics of 2009 the level of economic activity of the Georgian population is 63.6%. The level of unemployment, according to official statistic data, is about 16-17%, however according to the independent experts the actual unemployment level in the country is at least 25-30%. For example, rural residents are recorded as self-employed and that artificially increases the number of employees.

People how were employed during a week for at least one unpaid hour in a household, or helped their relatives free of charge, are recorded as self employed. There are 450500,000 people in this category. This explains why the Department of Statistics’ suggests that the unemployment level in urban areas is four to five time higher than in rural areas.

Unemployment assistance ended in May 2006. As a result of the abolition of the Law On Employment there is no legal base for granting and issuing unemployment benefits. A private insurance system for unemployed people has not yet been developed. Unemployed people in Georgia are without social protection.

The Labour Market Survey on Employer Workforce Demand in Georgia 2008 of International Organization for Migration (IOM) showed that in the next 2-3 years, an increase in the employees is planned by 44% of financial organizations, 19% of medical institutions, pharmaceutical agencies, 11% of communication organizations and 8% of transport organizations. Reduction of the staff is planned only by the part of organizations of the medical profile.

3. Accessibility of short-term/ occasional jobs Eighty percent of employers attract staff through personal contacts and recommendations; in parallel 30% of them use web-technologies (Internet), 24% - apply to the relevant 8

COUNTRY FACT SHEET vocational schools, 11% - make announcements, and only 3% use the services offered by the private employment agencies. The most popular websites for jobseekers are www.jobs.ge (here you can also find internship opportunities as well as educational and retraining programs available), www.job.ge, http://jobfinder.ge, http://jobs.boom.ge, http://geoworks.netfirms.com, http://geoworks.netfirms.com, http://www.geo-jobs.com, http://www.jobgeo.ge, http://www.goodjob.ge, newspaper “sityva da saqme” (www.saqme.ge).

4. Professional Education (Vocational), Training/Retraining Courses and Centers Georgian Employers’ Organization, an NGO, runs “Training and Employment Project for Job Seekers”, through studying employers’ demands for specialists in the first place. This program also grants training possibilities to those people who are willing to run their own business.

For additional information check for the Unit for Higher and Professional Education Programs in the Ministry of Education and Science of Georgia, http://www.mes.gov.ge/ content.php?id=215&lang=eng For information on various possibilities of training/retraining in Georgia also contact Association of Adult Education, http://www.aeag.org.ge/en/ Address: 34 Al. Kazbegi Ave., Plot 3, 0177 Tbilisi, Georgia, tel. +(995 32) 72 90 65 Vacancines and trainings can be found at http://hr.com.ge and http://www.jobs.ge / 5. Labour Conditions (minimum/average salary, working hours, security) Under the Georgian Labour Code 157, the employer is obliged to ensure a secure environment for employees’ life and health through: • informing them about the circumstances which might have malignant effect on their life or health; • installing preventive systems to avoid accidents; • providing employees with personal protective armaments.

The employer is obliged to pay damages and costs related to the medical treatment, when the condition of the employees’ health worsens due to the job performed. Moreover, the employer shall prevent pregnant women from performing tasks, which may endanger the well-being of the fetus, or pose as a risk to the physical and mental health of the pregnant women.

Weekly working hours shall not exceed 41 hours. Extra work may be demanded from an employer when it is necessary to prevent natural disasters, liquidate its results (without extra compensation), or prevent industrial accidents (with relevant compensation).

Pregnant women and physically disabled people shall not be involved in extra work or night work (from 10 p.m. to 6 a.m.) without their consent. Under N 351 Decree of President of Georgia “On Quantity of Minimal Wages,” employers are required to pay a minimum wage of 20 GEL per month to the employees.

The minimal monthly pension is currently GEL 70.

6. Starting new business The Law of Georgia on Entrepreneurs determines six legal forms for entrepreneurship: a. individual entrepreneur; b. industrial partnership; c. joint liability company; d. limited partnership; e. limited liability company; 9

COUNTRY FACT SHEET

f. joint stock company; g. cooperative.

The most frequently used organizational legal forms are the individual enterprise, the limited liability company and the joint stock company.

Individual Entrepreneur is not a legal person, it is a natural person who owns an enterprise and is personally liable for business-related obligations, with all of his/her property.

Individual Entrepreneur is registered by the taxing authority in the region whereas the business activities are conduced. The registration application shall contain the following information:

a. name of the individual entrepreneur;

b. full name, citizenship, domicile, identification certificate number and personal number of the person founding the entrepreneur;

c. domicile of the entrepreneur;

d. signature of a person founding entrepreneur.

Two copies of the application, certified by notary public shall be submitted to relevant taxing authority, which undertakes the obligation to register the individual entrepreneur in a day. It shall be noted that while registration the individual entrepreneur is not charged by any fee or tax. As long as the Individual Entrepreneur is a physical person, he shall be subjected to the income tax (25% of income).

Industrial Partnership is not a legal person either and its legal status is similar to the individual entrepreneur. If a partnership registered in accordance with the Civil Code of Georgia resolves to get registered, it shall be enrolled as an industrial partnership. The industrial partnership is registered by the relevant tax authority in accordance with the residential address of one of those persons, the name of which is indicated in the name of the industrial partnership.

Joint Liability Company is a commercial legal person. It has partners. Partners shall be at least two physical persons. Partners are liable for obligations of the society directly and personally, with all of their assets.

Limited Partnership has two types of partners: complementary partners and commandite partners. Complementary partner shall be a physical person personally and directly liable for the obligations of the society with his/ her whole property. Commandite partner may be a natural or legal person, who transfers to the society certain property and is not personally liable for the debts of society. The property transferred to the society is incorporated into the charter capital of the joint partnership.

Limited Liability Company is a legal person, which may be founded by one or more natural or legal persons, Partner or partners of the society are not personally liable for the company debts. They transfer property to the limited liability company and the debts of the society are paid from the company assets. This property constitutes to the charter capital of the company and it may constitute to any desired amount. Partners may transfer different amount of property to the society, the rules for complementing the charter capital and the partners’ portions hereto primarily depend on the partners wish and may be determined by the shareholders agreement or by the company charter.

Joint Stock Company also has the charter capital, which is divided into stocks of equal nominal value. A stock is a financial instrument, which certifies that the joint stock company has obligations toward the shareholders (holder of stock) and the shareholder has rights in the society. The Joint stock Company is liable to the creditors with its property. Shareholder 10

COUNTRY FACT SHEET is free from any monetary obligations deriving from the company debts. Charter capital of the joint stock company may be determined by any desired amount. It may be founded by one or more persons.

Cooperative is an enterprise with the goal to contribute to economic activities of its members and improve their financial condition. For example, cooperative may be founded to obtain raw materials for consumption of its members or to sell agricultural products that the members of the cooperative produce. The Cooperative is liable to it creditors with its property. Property of the cooperative consists of investments executed by the members of the cooperative, which is called “pai” (share). The minimum amount of the “pai” is determined by the members of the Cooperative. One member may hold two or more “pais”. The registration application of the Joint Liability Company, the Limited Partnership, the Limited Liability Company, the Joint Stock Company and the Cooperative shall be filed in the respective tax authority. The registration application shall contain the following information: • name of the entrepreneur (firm name); • legal form of the entrepreneur; • domicile of the legal person; • Information about each founder: full name, domicile, type of identification document, number of identification document, personal number on identification document or in case the founder is legal person – its name (name of the firm) and registration data (domicile, name of the authority that registered it, date of the registration and identification number, legal form and information on its representative.); • proxy to the person entitled to represent the society.

Founders of the Commandite Society also need to present to the taxing authority the amount of property each Commandite partner transferred to the society. Founders of the Limited Liability Society, Joint Stock Society and Cooperative need to define in the application the following: • amount of the guarantee capital; • information about director of the entrepreneur: full name, citizenship, and domicile, type of the Identification document, its number and personal number in the Identification document.

All the entrepreneur legal persons need for registration the following documents: • two copies of charter; • if the partners transferred property other than money to the entrepreneur, document of value evaluation of the property; • for Limited Liability Society and Joint Stock Society – document on appointment of the director; • cheque of registration fee.

Taxing authority should register the entrepreneur in three days. Cost of registration differs for different forms of entrepreneurships: • Joint Liability Company – 60 GEL (Lari); • Limited Partnership – 80 GEL; • Limited Liability Company – 160 GE; • Joint Stock Company – 360 GEL; • Cooperative – 120 GEL; • No fee for individual entrepreneurs and industrial partnership.

In accordance with the forms of their commercial activities all the forms of entrepreneurs may be subject to the taxation determined by the Georgian legislation. They may be subjected to the income tax, social tax, the Value Added Tax, the property tax and so on.

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COUNTRY FACT SHEET Unfortunately there is no availability for new businesses to receive credits in Georgia.

Only businesses existing at least 6 months can get credits for development. It’s important to mention that the first step for getting a credit is to meet with the Credit Office who determines the risk, interest rates, and a list of documents needed. Generally, banks or micro-finance institutions are not willing to provide loans for new businesses; the business should exist at least 6 months prior to requesting loan. There are following micro-finance organizations in Georgia Constanta, Credo, Finca Georgia, etc.

IV. SOCIAL SECURITY 1. Social Aid - Agency for Social Services The goal of the Agency for Social Services is to improve social protection of Georgian citizens through effective management of state benefits and programs of social assistance.

More than 1 300 employees serve at 72 district and 11 regional offices of the Social Service Agency.

Address: 51, Ivane Javakhishvili, Tbilisi 0102 Tel. +(995 32) 91 00 46 Fax: +(995 32) 95 55 83 E-mail: info@ssa.gov.ge Web page: www.ssa.gov.ge / http://www.ssa.gov.ge/index.php?lang=2 Georgian legislation defines Social Aid as any type of financial and non-financial benefit that is allocated to any person that needs special care, poor family or homeless person.

There are following types of social financial benefits: a) State Pensions; b) State Compensation and State Academic Scholarship; c) Social Assistance; d) Childcare; 2. Family allowances and access On October 29, 2006 the Parliament of Georgia adopted the Law “On Social Assistance”.

The law established social assistance system through which the state will allocate due resources among people with special needs, indigent families, and homeless people. There are five types of monetary social benefits under the Law and one of them—subsistence benefit—is determined for indigent families.

Under Article 4 of the Law, indigent family is determined as one or several persons living permanently in the isolated dwelling-place and managing domestic economy as a group, whose social-economic condition is lower than the level defined by the Georgian government.

According to State Social Subsidy Agency, each family considering itself to be socially insecure because of its social-economic conditions should register itself in the Regional Social Subsidy Agency. If all member of the family are not able to visit Agency, social agent will visit them to evaluate the social – economic status of the registered family.

Required documents: • ID card of all family members; • Birth certificate of all family members under 16; • ID card of family trustee or notarially confirmed letter of attorney.

After the family profit declaration by social agent, family becomes scores of welfare. In the case 12

COUNTRY FACT SHEET family becomes min 57.001 score, after 4 month from registration, family becomes financial social aid. In the case family becomes alternative social aid (for example, as IDPs), it has right to choose only one of them. If family becomes 70 001 scores it will provided with medical insurance.

Social aid for families can receive only those persons who were nominated for this aid till 1 January 2007. It includes different groups of beneficiaries: • lonely unemployed pensioner (1 family member – 22 GEL (Lari), • more then 2 family members – 35 GEL (Lari), • orphans with tutor (35 GEL (Lari), • unemployed 1st group blind (22 GEL (Lari) per family member), • disabled children till 18 years old (22 GEL (Lari), • many-children families – more than 7 children (35 GEL (Lari) per child till 18 years old) In the case of adoption of newborn or pregnancy, birth and child care, one time aid is not more than 600 GEL187.

The government said number of persons allegeable for social allowances will increase from the current 400.000 to 900.000. Monthly allowance for the each most socially vulnerable families, living below the poverty level – total of 400.000 persons - will receive GEL 30, plus 24 GEL (Lari) per each family member, instead of current 12 GEL (Lari); another part of socially vulnerable families with total number of 200.000 will receive 20 GEL (Lari) plus 16 GEL (Lari) per each family member and the third group, involving total of 300.000 persons, will have monthly 10 GEL (Lari) plus 8 GEL (Lari) per each family member188.

According to social servant of the Department for the Prevention of Abandoning Orphans and Children without Parental Care within the Ministry of Education and Science Nana Idadze, there are no any grants for female-headed households in Georgia at the moment.

3. Sickness benefit “Rule of Assignment and Granting Benefit for Temporary Absence of Capacity for Work”182 regulates sickness benefits for employees in private sector and civil service. The sickness benefit may be appointed because of a disease or injury, which resulted in loss of capacity for work. The sickness benefit is granted from the day when certificate from medical institution is given to the person.

Amount of sickness benefit depends on the salary of the person and the employer or relevant public authority (if a person is a civil officer) grants it. Total amount is determined by identifying the average salary per day multiplied by the amount of missed working days caused due to the temporary inability to work. Sickness benefit is not granted: a. if the injury resulted from committing a crime or from intentional self-injury; b. if a person did not meet prescriptions of a doctor; c. if injury or disease resulted from person’s being intoxicated with alcohol or drugs or other psychoactive substances; d. if a person is legally ousted from the job or if there is a court decision on compulsory medical treatment or forensic expertise.

According to social servant of the Department for the Prevention of Abandoning Orphans and Children without Parental Care within the Ministry of Education and Science Nana Idadze, all children until 15 years old use free medical treatment.

Georgian health authorities have announced that all IDPs in Georgia have free access to 13

COUNTRY FACT SHEET local health facilities, including referral services. In addition, primary care providers from local health facilities are visiting all collective centres on a regular basis to provide free medical consultations.

4. The Pension System The pension can be state or non-state. State pension is covered from the state budget.

Non-state pension is covered from the specialized legal entities that have non-pension schemes and provide the pensions based on the premiums that the beneficiaries should pay. State pension and non-state pension schemes are two independent systems. There are two types of non-state pension: indefinite and definite ones in time.

Indefinite pension starts from certain date and ends with the death of the beneficiary.

Definite one is limited to certain amount of years, not less than five years. Spouses can receive joint non-state pension. After the death of any of them, they get half of the sum that they used to get before. In case of divorce, the former spouses retain their individual rights on the pension.

Premium can be paid both by individuals or legal entities. The beneficiary can be another individual.

The entities that can provide the insurance of non-state pensions can be banks, insurance companies or other legal entities The Law on the State Pension of December 23, 2005 regulates the types, grounds for granting, the amount, issue, halting, renewing and termination of state pensions. Pensions are granted for the following reason: • reaching pension age: 65 years for men; and 60 years for women; • being disabled; • death of the breadwinner.

Under Georgian legislation, the following people are entitled to a state pension.

• Citizens of Georgia residing permanently in Georgia.

• foreign nationals and stateless people, who have been permanently and legally residing on the territory of Georgia for 10 years at the moment of applying for a pension. They have the same rights as citizens of Georgia, if not otherwise provided by any international agreement.

The standard pension is 75 GEL (30 EUR), the minimum pension is 70 GEL People can apply for a pension whenever they become eligible or revive their rights to a pension.

Where a person is entitled to a pension on more than one basis, the individual must choose which ground will apply. The pension can be paid at a bank anywhere in Georgia.

You should apply for a pension at the Social Security Services offices in each district. You will need to provide: ID card; a photo; and a service record card. For additional information call the hotline of the Ministry of Labour, Health and Social Affairs: (99532) 221 235 or 387071 or the Social Service Agency tel. +(995 32) 91 00 46.

5. NGOs Counterpart International’s Community and Humanitarian Assistance Program (CHAP) in Georgia focuses on meeting the needs of pensioners/aged, orphans and homeless children, large families and IDPs (internally displaced people). http://www.counterpart.ge/ Oxfam’s focus in Georgia is on health care, sustainable livelihoods, empowering people affected by conflict, and keeping government institutions accountable. Oxfam is making health care available to around 36,000 vulnerable people through medical schemes run 14

COUNTRY FACT SHEET by our partner organisations. Scheme members pay a small quarterly fee to receive basic treatment and medicines. http://www.oxfam.org.uk/ UMCOR began humanitarian operations in 1993 to address the needs of women and children by providing essential medicines and treatment practices, aimed at combating the most common and preventable illnesses facing this group. This mission has grown since its inception to implement a number of transitional development projects throughout the country. In response to the August 2008 conflict in Georgia, UMCOR has assisted approximately 75,000 people affected by the violence. UMCOR’s immediate relief efforts included distribution of food packages, infant formula, medicines, medical supplies, water, hygiene kits, clothing, shoes, pillows, mattresses and blankets to internally displaced persons (IDPs). UMCOR is also in the process of engaging local agriculture and microfinance organizations to implement Modern Agricultural Quest in collaboration with UMCOR in the Samtskhe-Javaheti and Shida Kartli regions of Georgia. http://new.gbgmumc.org/umcor/work/fieldoffices/work/georgia/ V. MEDICAL CARE 1. Medical infrastructure There are 12 administrative-territorial health units in Georgia, each with different number of regional centers where medical services are available. Tbilisi has the most developed health care infrastructure, with all types of medical establishments available: emergency services, ambulatory care centers and policlinics, hospitals and gynecological hospitals, medical-research institutions and centers, dentist’s offices and pharmacies. All types of medical services are available in Batumi as well. Every town has at least one hospital and one ambulatory care centre. The problem with these towns and regional centers is that there is no choice of medical establishments and only state-owned medical care centers are available. In early 2007 Government decided to spent 350 million GEL (Lari) on the construction of hospitals and 170 million GEL (Lari) for the construction of outpatient clinics.

Decentralization has been a major component of the health reform process since 1995 and was reiterated in the 2000-2009 strategic health plans. A plan to privatize hospitals was initiated in 2007.

Nearly all dental clinics and pharmacies have already been privatized.

The Government finances programs such as tuberculosis (TB), HIV/AIDS, immunization, mother and child health and provides insurance coverage for the population under the poverty line (currently estimated at 600.000 people). This covers a rather limited basic package of services.

2. Eligibility criteria and access to health care services Chapter II of Law on Health Care regulates Georgian citizens’ rights to health care. Article 5 of the aforementioned law states, “citizens of Georgia have the rights to use the medical assistance provided by the state healthcare programs following the stated procedures” and Article 6 says that “under no circumstances shall the patients be discriminated based on their race, skin color, language, sex, political affiliation or religion, ethnicity, origin, social status, place of residence, sickness, gender orientation or personal negative attitude”.

Therefore, all citizens of Georgia have equal rights to health care. The problem with the Georgian health care system is its relatively poor quality, not discrimination.

Under “poor quality” it is not meant the training of doctors, who are duly educated and trained, but facilities that are poor with outmoded technology, especially in regions. Sine the same service is available for everyone applying for help, there are no reported cases of discrimination in the health care system.

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COUNTRY FACT SHEET The treatment of the following diseases is free for citizens of Georgia: • Tests for HIV/AIDS and anti-retroviral treatment are free. HIV treatment is free for Georgian citizens. They need to present their ID cards and be registered at the AIDS centre. There is a charge of 10 GEL for the HIV test. If the test result is positive, patients are registered in the database. Other tests and regular check-ups are free.

This programme is financed by Global Fund.

• Psychiatric conditions are treated for free.

• Epilepsy treatment is also financed by the state but only if accompanied by psychopathic behaviour. A patient suffering from epilepsy and depression will be treated free for both (whether he or she needs in-patient or out-patient treatment).

• Insulin for diabetes patients is free.

• Dialysis is free for patients in the state programme but the number of patients is limited to 200.

• All tests and treatment procedures for tuberculosis are free of charge for Georgian citizens.

Treatment of Diabetes To obtain insulin, patients should go to a clinic to have their blood sugar level measured.

They will first be prescribed diet therapy. If this does not help, they will receive medical treatment, mainly Gliklazid (80 mg tablets, 15.5 GEL for 60 tablets) and Metfogamma (500 mg tablets, 23 GEL for 120 tablets). The dosage will be decided during the medical consultation. If this does not help, insulin is prescribed. At that point, patients register as insulin dependent and receive a monthly stock of insulin at a special pharmacy, free of charge. They must consult their doctor once a month for a repeat prescription. Patients who are in need of dialysis are referred from a polyclinic. Places are limited so a Georgian citizen who arrives in Georgia, and is in need of dialysis, should contact one of the eight specialist clinics in Georgia (five in Tbilisi and three in the regions). Clinics in Tbilisi with dialysis programes are as follows: • Clinical Hospital #1, 9, Tsinandali Str, Tbilisi. Telephone: (99532) 77 24 67 (urology dept).

• Via Vita – Dialysis, Nephrology and Efferent Treatment Centre (on the premises of O.Ghudushauri Clinic), 18/20, Lubliana Str. Telephone: (99532) 51 77 72; fax: (99532) 5177 73.

• Tbilisi State Medical University Central Clinic (named after academician, N. Kipshidze; formerly Republican Hospital), 29, Vazha-Pshavela Ave, Tbilisi. Telephone: (99532) 39 57 14; fax number: (99532) 39 55 23; • Experimental and Clinical Surgery Centre (named after K. Eristavi), 5, Chachava Str,Tbilisi. Telephone: (99532) 52 95 59; fax: (99532) 52 00 75; • Paediatric Clinic of the State Medical University named after Givi Zhvania; address: 21, Lubliana Str, Tbilisi. Telephone: (99532) 52 0035, 54 0698; fax: (99532) 52 59 76.

Kidney Disease Kidney transplants are carried out at the National Centre for Urology, 9, Tsinandali Str, Institute of Urology, floor 6, Tbilisi. At present, no kidneys are available. A patient needs to have identified his or her own donor, which should be a family member or a relative. If they have a donor, the patient will only have to wait whilst a preliminary medical check-up of the patient and the donor is carried out. The transplant operation itself is covered by the State programme. Medical personnel will prepare documents to bring the patient within the State programme. Patient have to pay for the medical check-up – around 1,000 EUR. 3. Health Services for Vulnerable Cases A family is eligible for subsistence allowance and free medical treatment if it is registered on a unified database for socially vulnerable families. This register was set up by the 16

COUNTRY FACT SHEET Social Assistance and Employment Agency under the Ministry of Labour, Health and Social Affairs in 2007, using a system of points. The staff of the agency interviewed every family that applied for registration on the database before 1 January 2007. Families with fewer than 70,000 points are considered to be vulnerable. Very few families fall into this category. The subsistence allowance is 30 GEL (14 EUR) for one member, plus 24 GEL (11 EUR) for each additional member.6 Several organisations work with persons with disabilities, victims of domestic violence, homeless children, substance abusers, etc.

Some useful links are: www.gmhc.ge; http://www.gmhc.ge/en/service-rganisations.shtml.

4. Costs of health care Cost of health care depends on the type of disease and its treatment as well as the patient’s social-economic condition. The state program of hospital care assistance has several components and in each of these components, different amount of health care expenses are covered from the state budget.

The Agency of Medicine in Ministry of Labour, Health and Social Affairs stated in response to the application regarding information on supply of medicine, that delivery of supply takes place on regular basis and there is no problem related with it. First aid medicines are always available at Georgian hospitals.

5. Health Insurance Unfortunately the health insurance system is not very well developed. It is mainly people employed in international organizations and big corporate companies that have health insurance. Most of the population is currently not insured and they have to cover the costs of their treatment in state or private clinics themselves.

In Spring 2009, the state introduced health insurance (5 – 10 GEL/2.3 – 10.3 EUR per month) for citizens of Georgia between 3-63 years. This insurance covers general blood and urine tests, examinations, electrocardiography twice a year, and urgent medical assistance.

There are several packages offering a variety of services for a monthly fee. There is a special package for people over 60. For 30 GEL (12.2 EUR) per year, they can have a free check-up twice a year, free urgent treatment or operations, and 50% discount on ambulatory treatment (ultrasound, X-ray, consultations etc.).

State health care programmes are only free to people below the poverty line.

Voluntary medical insurance program is subject to compulsory notice to the Ministry of Labor, Health and Social Affairs of Georgia. In case of voluntary medical insurance any physical or legal person can be an insurer. Any licensed insurance organization can administer voluntary medical insurance. In the case of voluntary medical insurance the amount of insurance fee (insurance premium 5-20 GEL) is determined by the agreement between the insurer and the insured.

Registering with a Health Insurance Company takes place with the help of insurance consultants who will visit you at home or office and explain the conditions. They will help fill in the application documents and register you. Alternatively, you can go to the central offices of the insurance company. You can take advantage of the medical services as soon as the policy is in effect.

First of all, you need to go to the designated medical centre, which you choose, to be registered with your personal doctor. The doctor will keep records of your medical history.

He or she will arrange appointments with a specialist when necessary and will plan both in-patient and out-patient treatment processes. The offices of these doctors are located at the medical centre of each insurance company.

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COUNTRY FACT SHEET VI. EDUCATION 1. Educational System Structure Primary education is compulsory. Citizens shall have the right to receive free secondary, professional and higher education at state educational institutions in accordance with the procedure and within the framework established by law.

According to Georgian law “On General Education”, general education consists of three stages: 1. primary education (1-6 forms of schools); 2. basic education (6-9 forms of schools); 3. secondary education (9-12 forms of schools).

Compulsory education encompasses 1-6 forms. However, full general education may be obtained through accomplishment of all 12 forms of general educational organization/ school. General education, including its third stage, is free and is fully financed from the state budget. Secondary education certificate grants right to its holder to receive higher education.

According to the data of Ministry of Education and Science of Georgia there are 2462 schools in Georgia, 313 among them in Tbilisi (both public and private schools). There also not only Georgian speaking, but also 417 minorities-speaking schools, 70% of them are in Kvemo-Kartli (Azerbaijan minority) and Samtske-Javakheti (Armenian minority) regions.

Under the education system reform taking place in Georgia, secondary education is free (there are both public and private schools). However, there is a system of informal payments on the basis of which much of the school budget is funded.

Higher education is one form of professional education. The forms of professional education are: a. preparation for craftsmanship; b. initial professional education; c. secondary professional education; d. higher education.

To engage in preparation for craftsmanship having primary general education is sufficient.

One needs to have accomplished basic general education to receive initial or secondary professional education.

Higher education is available to people who have certificates of general secondary education and have passed the national examination, which tests the individual’s preparedness for study in higher educational establishments. Applicants list the names of faculties and educational establishments where they intend to receive higher education in the application for participation in the national examination. The score received by the applicant in the examination undergoes ranging after absolute quantity of scores is obtained and ranging after ratio of faculties is determined. Ranging after determination of faculty ratio designates to which faculties the applicants are accepted to from those previously listed in the application. Ranging after absolute quantity of scores determines which applicants will receive from the state educational grants to cover tuition fee.

Therefore, definite amount of students receive free higher education in Georgia.

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COUNTRY FACT SHEET 2. Evaluation system General evaluation system in secondary education: 0-10 points.

General evaluation system in higher education: for exams 0-10 points or 1-100 points.

Other main systems of evaluation: in some institutions - 0-5 points.

3. Recognition of Foreign Diplomas Georgia had recently joined the Bologna Process and automatically recognises all the higher education diplomas issued by countries which are part of this process. The formal recognition of all the documents verifying the education undergone abroad by an applicant is carried out by the Georgian Centre for Educational Accreditation and Academic Recognition (68, Uznadze Str, Tbilisi). This is done on the basis of the equivalence of these overseas programmes with those in Georgian higher education facilities.

Diplomas on vocational education are verified by the Ministry of Education and Science of Georgia.

4. Vocational Training Courses Vocational education in Georgia is regulated by the Law on Vocational Education of March 28, 2007. Vocational education is available to anyone with basic or higher education.

Training at Vocational Education Centers lasts for 1-2 years. Vocational Education Centers can also provide professional training and re-training programmes for adults. The length of training on these programmes depends on the complexity of the trade and the qualification grade being sought. Education is financed from the state budget, as well as by individuals, organizations and donors.

Students are accepted at Vocational Education Centres after passing special tests or after an interview. Paid-for courses are available to non-citizens of Georgia.

There are currently some 38 vocational training institutions across the country. These institutions offer short courses of two to three months on construction, agriculture, tourism and food processing. The results are promising. Some 65–70% of graduates are hired upon completion of the training. The short courses seem particularly suitable for providing a basic knowledge of a sector.

As well as courses that charge students, the vocational training institutions offer 3.000 free places a year for vocational training in different fields: tourism and the service sector; construction; agriculture; food processing, etc. Students are selected for free training on a “first come first served” basis. They are also tested to identify the appropriate level of training that will suit them.

The Association of Adult Education can also contacted for information on training and retraining in Georgia. Its address is: http://www.aeag.org.ge/en/ 34 Al. Kazbegi Ave., Plot 3, 0177 Tbilisi, Georgia, tel. +(995 32) 72 90 65 VII. HOUSING Under the Georgian Civil Code, property rights and right to ground rent entitles a person to build a house on his/her land. As land presents immovable property or real estate, the legal conditions of obtaining ownership on the land will be addressed in section 4.2.4.1 (Legal conditions [of buying real estate]). Legal conditions of obtaining the right to ground rent will be discussed here.

Pursuant to Article 233 of the Georgian Civil Code, ground rent means “transfer of the 19

COUNTRY FACT SHEET land to the use of another person for a fixed period of time in order to grant him hereditary and transferable right to erect on or beneath this tract some construction.” The maximum duration of the agreement of right to build may not exceed 59 years. The agreement granting right to build may oblige the possessor of the right to pay compensation to the owner of the land during validity of contract. Upon the termination of the contract, the possessor of the land shall pay adequate compensation for the building erected on the land or offer the holder of the right to prolong the agreement for the presumed period of additional existence of the structure. The right to build grants its owner the possibility to build and live in the house for at least 59 years, after which s/he either receives compensation for the building s/he constructed or stays in the building for the period of its existence.

Right to build is related to immovable property, therefore it needs registration. Concerned person needs an act from the local authority and the Ministry of Economic Development, cadastral plan of the relevant land, and official registration fee cheque. Application of registration, together with the above-mentioned documents, should be made to the territorial organ of the National Agency of Public Registry The application should be determined after the location of the land on which the person has right to build has been confirmed. Registration should take place in 1-3 days.

1. Housing space and renting costs There is no legislative act, which outlines provision of temporary living space to returnees from abroad (ex-asylum seekers).

The renting prices vary not only based on the regions, but also within the Capital Tbilisi.

The difference can be as large as 200 USD (330 GEL(Lari)) between houses/apartments located in different parts of the city. For example, it is possible to rent a two-bedroom apartment at the price of 200 USD (330 GEL(Lari)) in the remote district of Gldani, while apartments and houses with identical features can cost 400-500 USD (660-825 GEL(Lari)) in the more prestigious districts of Vake, Vera, and Saburtalo. Apartments and houses are comparatively cheaper in the rural regions of Georgia. However, administrative centres of these regions are still more expensive. For example, monthly rent of an apartment/house in Kutaisi—the administrative centre of the Imereti Region—varies from 100 USD to 200 USD, whereas the price might vary from 30 USD to 80 USD in Zestafoni, another town in the Imereti Region.

2. Buying Real Estate Between 2005 and 2008, the price of real estate increased dramatically in Georgia, especially in Tbilisi. In 2008, 1m2 in a newly constructed building reached USD 500-1,500.

The recent economic crisis affected property prices, which dropped by 15-25% but, by autumn 2009, they had started to rise again. It is possible to purchase real estate directly from the owner, as well as through property companies as mediators. Mediator service fees are generally 3% of the market price of a property.

The annual tax rate on real estate ranges from 0.05% to 0.08% of the market price of the property. The income tax depends on the family income of the tax payer in the previous fiscal year.

•

Available credits, subsidies and other forms of help.

The following banks offer mortgages to corporate clients and individuals: Bank of Georgia; TBC Bank; ProCreditBank; Bank Republic; VTB Bank; People’s Bank; Bazis Bank; Bank Cartu; and TaoPrivat Bank. Every bank has its own conditions. Interest rates fluctuate 20

COUNTRY FACT SHEET between 18% and 27% per annum but the economic crisis has made it extremely difficult to obtain any credit.

In November 2009, several banks announced a reduction in interest rates on loans. From 16 November, Bank of Georgia lowered interest rates on various loans and deposits. The interest rate on mortgages is 14.5% and the interest rate on consumer credit started at 20% (instead of 36%). From 1 September 2009, interest on mortgages offered by Procredit Bank has been 17-24%. TBC Bank’ mortgage interest rate starts at 14.9% and Basis Bank offers interest at 16-20%.

For example in case of TBC bank, credits are Credits are available for building, purchasing or repairing houses, apartments or cottages. The maximum loan amount is 500,000 USD (800,000 GEL (Lari)), for furniture acquisition – 10,000 USD (17,000 GEL). The minimum loan amount is 2,000 USD (3,500 GEL). Minimum loan term is 6 months while maximum loan term is 10 years. Annual percentage rate is starts from 14,5 % on USD, from 15,5% on GEL. Terms of loan repayment: in equal monthly payments, in line with the cash flow.

Service Fee: 1%; minimum USD 20 The average time from submission of documents to the granting decision is 3 days.

Income requirements: The minimal amount of income varies by its type Salary 300 USD Dividend 800 USD Rent 400 USD Mortgage loans are available to individuals with the documented stable income obtained in form of: • Salary • Rental Income • Dividends Loan Requirements differ by the type of income as shown in the table below: Salary

Dividends

Rental Income

Length of current employment,(probationary period must be completed)

Dividend issuing company must follow established criteria set by bank

Length of rental agreement (not less) than 6 months)

Employment History (not less than 2 years)

Stable monthly dividend income

Recommended by a real estate specialist

3. Social Grants for Housing Social grants for living costs are made only to internally displaced persons, families affected by an earthquake or other act of God, or for officers serving in the army on a contract basis.

4. Housing provision for Vulnerable Cases specialized institutions where people needing special care (disabled persons) can be supported at the state’s cost or with a contribution from the state. Families whose income is below the subsistence level set by the government are given a full state allowance at these institutions.

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COUNTRY FACT SHEET The government has set up the State Fund for Assisting Victims of Trafficking. The State Fund is available to help victims who are recognized as victims of trafficking. The State Fund provides medical, legal and psychological help, and operates shelters and a hotline.

The State Fund is also responsible for providing compensation of 1,000 GEL to each victim. A beneficiary can stay at a shelter for one month. At present, there are two shelters for victims of human trafficking: in Batumi and in Tbilisi.

The National Anti-Violence Network (Address: 9, Antonovskaya Str, Tbilisi; tel: (99532) 39 89 34; fax: (99532) 50 60 64) provides shelters for victims of domestic violence for up to three months.

VIII. INFRASTRUCTURE AND PUBLIC TRANSPORT 1. General information Almost all types of public transport are developed in Georgia – railway, sea and air transport, bus, trolley bus, underground.

In 2007 3.9 million people were transported by means of railway (www.railway.ge), 293.5 million – by bus (including minibus), 91.8 million - by underground, 0.6 million – by trolley bus, 0.2 million – by air. As it can be seen, the main means of transportation is the bus, followed by underground. Sea transport is mainly used for cargo transportation.

Concerning the length of public roads, in 1990-2007 their parameters did not change significantly. Exception is the length of trolley bus roads, length of which decreased.

Namely, the length of two way roads for trolley bus decreased from 311 km to 95 km. Tram is not functioning any more.

Length of underground roads (two-way) increased from 25 km to 27 km (underground functions only in Tbilisi). The length of railway and public motor roads remained almost the same. The total length of railway by the end of 2007 was 1 559 km and that of public motor roads – 20 329 km.

IX. CUSTOMS Under Article 90 of the Customs Code of Georgia, a passenger (physical person) crossing the customs border of Georgia can import the following items free of duty and without customs declaration, if the import of these items is carried out within 24 hours: • Food products with cost of 500 GEL with gross weight of 30 kg, namely vegetable, fruit, dried fruit, milk and dairy products, macaroni and other ready-made products, nuts, sugar, candy, confectionery, yeast, etc.

• Various items for personal use with cost of 500 GEL (3000 GEL if imported by air) with gross weight of about 30 kg; • Import of only 4 litres of all kinds of alcohol and 200 sticks of cigarettes is permitted; • Various items for personal use with cost of 15000 GEL, when an individual enters the country after each stay in a foreign country for over 6 months • Import of goods for personal use, including furniture, household equipment, and a vehicle per family is duty-free when entering Georgia for permanent residence; • Only for diplomatic officials, called from service mission into the diplomatic representations and consular offices according to rotation rules - import of items for personal use (1 vehicle, 1 refrigerator, 1 TV set, 1 personal computer per family).

If the overall cost of personal belongings exceeds the afore-mentioned duty-free weight and value, the passenger needs to fill out the customs declaration and pay: • Customs fees – 5 EURO (equivalent to his/her national currency) if the cost of the 22

COUNTRY FACT SHEET goods is under 3000 GEL (Lari), or 60 Euros if the cost of the goods exceeds 3000 GEL (Lari); • Customs duties –0% to 12% (different rates on various goods) of the value of the declared good; • VAT – 18%.

Customs declaration should be completed if the personal belongings imported need special license or permission under the Georgian Legislation. These items are: • Various kinds of jewellery such as precious metal, stones, antiques, and pieces of art–icons, paintings, sculptures. For their transportation special permission is required from the Ministry of Culture, Monuments Protection and Sport. However, jewellery determined for personal use falls under the second category of duty-free articles and if its cost together with other personal belongings does not exceed 1000 GEL (Lari) (3000 GEL (Lari) if imported by air), they are also free of duty and only need oral declaration.

• All types of weaponry, bullets, ammunitions, inflammable substance, drugs, psychotropic, strong and poisonous substance, radioactive substance, high-frequency radio electronics, and communication devices as well as live animals and plants.

Customs department of Georgia carries out veterinarian control on animals and birds and phytosanitary control on plants imported to Georgia. Cash (securities) exceeding 30,000 GEL (Lari) or its equivalent in foreign currency also needs declaration.

X. TELECOMMUNICATION 1. Postal services Postal system in Georgia offers telecommunication and post-package distribution services country-wide and world-wide. Such mailing services as DHL, TNT, UPS, Fedex are also operational in the country.

2. E-mail/Internet The main Georgian Internet Service provider is Caucasus Online. Caucasus Online was created as a result of merging two leading Internet providers – Sanet and Georgia online in 2006. In the last period United Telecom has strengthened considerably.

Apart from DSL services Caucasus on-line and United Teecom since the beginning of 2008 have been offering optical internet to its clients. Caucasus on-line created a new brand for providing optical internet, which is known as “GE link”.

3. Telephone communication Fixed-line telecommunications network has only limited coverage outside Tbilisi; long list of people waiting for fixed line connections. Multiple mobile-cellular providers provide services to an increasing subscribership throughout the country. Cellular telephone networks now cover the entire country; mobile-cellular teledensity approaching 75 per 100 people; urban fixed-line telephone density is about 20 per 100 people; rural telephone density is about 4 per 100 people; intercity facilities include a fiber-optic line between T’bilisi and K’ut’aisi; nationwide pager service is available.

Country code is 995. The Georgia-Russia fiber optic submarine cable provides connectivity to Russia. International service is available by microwave, landline and satellite through the Moscow switch. International electronic mail and telex service are available.

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COUNTRY FACT SHEET XI. SOURCES Georgia http://www.aboutgeorgia.ge/ International Crisis Group http://www.crisisgroup.org/en/regions/europe/caucasus/georgia.aspx The United Nations Refugee Agency (UNHCR), “UNHCR hopes to improve conditions for returnees Abkhazia in 2009” http://www.unhcr.org/news/NEWS/48ff51084.html Employer Workforce Demand in Georgia 2008, http://itlab.ge/iom/pdf/Employer_report_eng.pdf CIA - https://www.cia.gov/library/publications/the-world-factbook/geos/gg.html IRRICO - http://irrico.belgium.iom.int/ Counterpart International Caucasus http://www.counterpart.ge/ UNHCR - http://www.unhcr.org/refworld/ Georgian Railway www.railway.ge Metro Tbilisi http://www.metro.ge/ National examination Center http://www.naec.ge/ Carritas “Country of Return Information” http://www.vluchtelingenwerk.be/landeninfo/country-sheets.php?l=en European Country of Origin Information Network http://www.ecoi.net/ President http://www.president.gov.ge Parliament http://www.parliament.ge Government http://www.government.gov.ge Ministry of Foreign Affairs http://www.mfa.gov.ge/ Ministry of Defense http://www.mod.gov.ge/ Ministry of Education and Science http://www.mes.gov.ge Ministry of Economic Development http://privatization.ge/spp/eng/ Ministry of Energy http://www.minenergy.gov.ge/?lang=eng Ministry of Agriculture http://www.maf.ge/ Ministry of Finance http://www.mof.ge/en/home Ministry of Justice http://www.justice.gov.ge Ministry of Economy and Sustainable Development http://www.economy.ge/ Ministry of Internal Affairs http://www.police.ge Ministry of Labour, Health and Social Affairs http://www.healthministry.ge 24