Caucasus Business Week #119

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BUSINESS WEEK October 26, 2015 #119

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October 26, 2015, Issue 119

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Jiang Jun - Growth in Investment Inflow will Strengthen National Currency

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Is Currency Crisis Really Over? Is the economic crisis in the country really over? According to the Georgian authorities the economy has been in recovery. Yet there remains widespread impression that the economic crisis that began in 2014 is far from over. In October, we have the following indicators: National currency is depreciated by 40 percent, rate of economic growth is slowed and inflation rate is at 5.2 percent that is predicted to reach 7%. Pg. 7

GEORGIA WANTS ITS SHARE IN NEW SILK ROAD For centuries the historical Silk Road connected Asia and Europe by land and by sea. The new proposal of China to revive the ancient concept of the Silk Road, aims to carry forward the spirit of peace, cooperation, openness and inclusiveness for shared benefits. Tbilisi hosted its first Silk Road

forum last week. The Forum initiated by the Georgian PM aims at re-creating Georgia’s economic and logistic role in the New Silk Road, initiated by China’s President Xi Jinping. Georgia is eager to participate in the New Silk Road, or “Belt and Road” initiative.

Apart from promising a 9-day Railway trip from China to Europe, the country is open for new infrastructural and business projects. Here is what country’s foreign partners had to say about Georgian business potential at Tbilisi Silk Road Forum. Pg. 5

Georgia Did it – Sergeenko Presents Three Years of Healthcare Reforms Minister of Labour, Health and Social Affairs of Georgia presented three years of reforms in health care to public. Sergeenko accentuated Hepatitis C elimination program as the main achievement of country’s healthcare sector. Pg. 8

Threats from “Easy Loan” Congratulations, Your Loan Approved” – commercial banks send similar messages to Georgian citizens every day, sometimes twice a day. Many and many financial organizations offer various tempting proposals to shove their loans. The bank sector specialists assert this is an ordinary business and it is inadmissible to restrict advertising bank products or offering loans to the population. Pg. 9

AGL – A COMPANY’S STRATEGY FOR THE GREATER GOOD OF GEORGIA

BUSINESS CAFÉ – JOINT PROJECT OF INSOURCE AND PASHA BANK

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International Network “Aesthetic Medical Clinics Group” – Prague, St.Peterburg, Tbilisi

TBILISI’S NEW BAR SPOT OWNED BY A YOUNG COUPLE Pg. 10

CLINIC

MEDI

Full span of State of Art Dentistry . . .

52 Kostava str. Tbilisi Tel: 291 00 00


NEWSROOM

2 MAIN EVENTS WORLD BANK WILL CONTINUE SUPPORTING PRIORITY SECTORS IN GEORGIA

GEORGIA-ISRAEL TIGHTEN SECURITY, ECONOMIC, CULTURAL TIES

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he World Bank is continuing to support Georgia’s priority sectors of development, says the Vice President of the World Bank’s Europe and Central Asia region, Cyril Muller. Today the World Bank official met Georgia’s Prime Minister Irakli Garibashvili and spoke about the country’s progress and future goals. The sides talked about the importance of ongoing projects that were financed by the World Bank in the energy, roading, agriculture, regional and municipal development sectors. Since Georgia joined the World Bank in 1992, a total of 62 projects comprising approximately $2.27 billion USD in credits, grants and loans have been provided to the country. The current portfolio consisted of several active investment projects and one development policy operation for a total of around $580 million USD.

“RK ALAZANI HEAD” WILL DEVELOP AGRICULTURE TOURISM ON THE AREA OF TUSHETI NATIONAL PARK

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overnment has delivered land area of 1000 sq / m, locating in Tusheti National Park, to the cooperative “RK Alazani Head” under the building rights. The government regalement notes, that “RK Alazani Head” will arrange sheep cheese production facility. Namely, the cooperative must arrange sheep milking tank, traditional Tushetian cheese storage warehouse, camping and picnic area.

GEORGIAN CITIZENS CAN GET 30-DAY VISAS AT THE IRANIAN AIRPORTS

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ran’s media reported on Wednesday that the country has started to issue 30-day visas for tourists from 58 countries upon arrival in its airports. The Persian-language newspaper Donya-ye Eqtesad reported that the move is in line with a plan that was approved by the government two months ago. The visas can be extended by 15 more days, the report added. Foreign tourists could previously get 14-day visas at Iran’s airports and their visas could not be extended.

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eorgia and Israel are both small nations that are building modern democracy. These words were spoken by Georgia’s President Giorgi Mar-

gvelashvili today while he met his Israeli counterpart Reuven Rivlin within his official visit to the Middle Eastern country. “I am sure we will be able to overcome challenges and build a peaceful and secure environ-

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zim Sadikov, IMF Resident Representative in Georgia considers that the basic parameters of the draft 2016 budget are realistic. “The budget is built on real GDP growth of 3 percent and GDP deflator of 4.5 percent. The budget deficit is targeted at 3 percent of GDP, which we believe strikes the right balance between supporting Georgia’s growth and its external sector stability”, - Sadikov declares. Discussion of the draft budget 2016 in the Parliament should be finished in this week. Summary meeting of Budget-Finance Committee is scheduled for October 20. However, the Parliament will return the draft budget 2016 with explanations to the government for processing.

UAE IN GEORGIA’S TEN TOP IMPORTS MARKETS s of 9 months data, import volume from the mentioned country has amounted to 167 million USD and it ranks the 9th by this data. To note, 2,9% of the total import accounts for this country. Import volume from the United Arab Emirates has been significantly increased through the last quarter. Import has made up 31,6 million in July, 25,6 million in August and 30,1 million USD in September. However, import volume of the United Arab Emirates has been 198,9 million in 2014, while 211,1 million in 2013.

ment in our region,” Margvelashvili said at a press briefing following the meeting. The Georgian official expressed his concern about the frequent terrorist acts in Israel and said: “Our countries have a long-term tradition to overcome violence with peace and common values”. “We know we cannot overcome violence with violence, we should overcome violence with love, common goals and ideas,” he added. Margvelashvili also spoke about the challenges his country faced and said the problem of Georgia’s Russian-occupied territories could be resolved only through negotiations, peace and diplomacy. “Foreign goals of Georgia may be achieved only through international agreements and following the norms of law.” The Georgian President also stressed his country’s leading geopolitical role in creating new opportunities for strengthening links between the East and West. “These links are important for everyone who thinks to develop projects, welfare and future and not on violation of human rights,” he said. Meanwhile at the media conference the Israeli official highlighted the multi-century, enduring friendship between Georgia and Israel and noted Georgia was one of the earliest spots where Jewish diaspora settled. “There is no doubt that Georgia is one of the most important allies of Israel in the Caucasus region. Georgia, like Israel, is a country where there is religious tolerance and equal respect to all cultures,” said the Israeli President.

KAKHA OKRIASHVILI: CURRENT DEVELOPMENTS CANNOT DESTABILIZE COUNTRY

IMF: BASIC PARAMETERS OF 2016 BUDGET BILL ARE REALISTIC

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n recent days the political situation in Georgia has gone gloomy after a leak of hidden camera footages and the trial on Rustavi 2 ownership case. The Commersant has inquired businessmen’s positions and attitudes toward the ongoing processes. PSP pharmaceutical company founder Kakha Okriashvili says the current developments will not bring turmoil in the country. “Neither unrests nor any negative effect on the business is expected. Why should we expect similar scenario? The TV

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company founders cannot divide stakes and this not a ground for unrests. Rustavi 2 TV company has changed 20 owners and nobody really knows who is a genuine owner. We should not shake our country because of this!” – Okriashvili noted. Georgia is a small country and similar events affect the business sector, Givi Korinteli, a head of the First Credit Union, noted and added it is difficult to talk from the position of a businessman, because we live in the same society and it is difficult to separate the position of a businessman

from the position of a citizen. Similar developments always fuel certain unrests and little shakes, Korinteli said and added that is it difficult to foresee whether the business sector should have negative expectations. Everything depends on further developments, Korinteli pointed out. “If we see specific protest rallies, including picketing rallies, a use of excessive state force, which is less expected in this situation, then all these developments will create a different reality and these processes will influence the business and social activity”, Korinteli noted. The diplomatic corp. performs a huge role in similar situations, he said. If they assess spread alarming signals around the situation, investors will immediately react to these signals and investment inflows may decline. At the same time, distinct cases cannot thwart inflation inflows, he noted. Will the current developments affect the consumer moods? If the process acquire the global character, they may affect tourism business, real estate business and so on. Sales in essentials will not be affected, Korinteli said. The developments around Rustavi 2 TV company causes a sense of insecurity, he added. “This is a negative practice that generates a feeling of insecurity in both the society and the business sector. Naturally, the business should be transparent in all countries, but there are certain moments, that nobody wishes to divulge. I mean trade secrets and so on. A sense of insecurity reigns in the country. The developments of 5-10 years ago may be repeated again. I think this is the mistake of our society. We express less protest in this respect. We remember serious campaigns, for example, “They Still Listen to Us” and so on, but the people were showing less solidarity as everybody thought nothing would happen in their lives to be afraid of. Everybody starts thinking and caring when something specific happens in our lives and this is an incorrect practice. And then it is later to realize we were to express our protests”, Korinteli said.

Editor: Nino Gojiashvili. Mobile phone: 595 050404 Reporters: Nutsa Galumashvili; Lazare Gvimradze; Shiva Parizad. Designer illustrator: Giorgi Magradze. Technical Assistant: Giorgi Kheladze

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


October 26, 2015 #119

PUBLICITY caucasus business week

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INTERVIEW caucasus business week

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GROWTH IN INVESTMENT INFLOW WILL STRENGTHEN NATIONAL CURRENCY Hualing Group launched investment projects in Georgia in 2007 and the investment portfolio has already exceeded 500 million USD. The major investment projects include Basisbank, Kutaisi free industrial zone and Tbilisi Sea complex.

What is the interest of Chinese Hualing Group in Georgia and what are the Chinese company’s plans in the Georgian market? Hualing Group vice president and Basisbank supervisory board head JIANG JUN overviews these issues in his interview. - Mr. Jiang, what is the interest of your company in Georgia and which fields do you consider the most attractive in Georgia? - I would name the tourism sector as one of the priority directions in Georgia. The Georgian wine is a special phenomenon and we should stress its importance in the country development perspectives. Georgia’s geopolitical location is also very important as the country connects Europe with Asia. Georgia’s geographic location, its invest-

appraise the perspectives of Georgian wines in the Chinese market. - Does Hualing Group have any interests in the Georgian wine market? - Negotiations are underway with several winemaking companies. Hence, our group has quite serious interests in the Georgian winemaking business. - Georgia plans to develop tea business

Our portfolio unites real estates, a major shopping mall in the South Caucasus that will be finished in the near future and new brands will launch operation there at the end of 2016 ment climate, valuable legislative basis and well-developed intellectual level of the population – all these aspects create preconditions that are important in the multiyear performance of Hualing Group in Georgia. - As to the Georgian wine, last period the Georgian party has intensified marketing efforts in the Chinese market. As a result, Georgian wines exports have increased by about 90% to China for a year. What do you think about the Georgian wine potential in the Chinese market? -The Georgian wine has one of the ancient histories worldwide. It is famous for stable and high quality. Georgian vineyards and Georgian grapes are natural and biologically clean. Georgian winemaking tradition should be also stressed. Georgian wine has recently appeared in China. A Certain period should be passed that the Georgian wine be a success in China. With the 1.3 billion consumer market the Georgian wines have good perspectives.

Thus, Georgian wines offer valuable competition to French and Italian wines and I positively

projects jointly with China. Does Hualing Group have any plans in this direction? - Our group may be less interested in this issue, but we can introduce Georgia and Georgian tea to other interested companies and enterprises in China. - Hualing Group manages Basisbank and holds a 90% stake in the commercial bank. How would you appraise the current situation in the Georgian bank sector? - The Georgian finance market is quite open. After Basisbank joined the Hualing Group, the bank’s capitalization has doubled. The stronger bank guarantees better services for the Georgian population and also supports our clients and companies in Georgia. The GEL depreciation against USD may be appraised in two directions. Exporter companies have make benefits and their competitive capacity has increased, while importer companies are bearing losses. - The high dollarization coefficient is recorded in Georgia. Will Basisbank take certain steps in this context? - The high dollarization indicator could be also appraised in two aspects. Exporter companies receive affordable credits in USD,

while importers face difficulties. The high dollarization coefficient grows the USD price, but brings negative results to the national currency. I believe the more investments will ensure the stable and firm national currency. As to Basisbank, we will try to increase our credit portfolio in both GEL and USD. - Hualing Group is one of the major Chinese investors in Georgia. How much is your portfolio and do you plan to expand it? Hualing Group’s investment portfolio in Georgia exceeds 500 million USD. We plan to work in the existing sectors to improve the ongoing projects and only after that to launch new projects. A Hualing hotel has added a new stimulus to the Georgian tourism sector. We provide very interesting new directions to tourists and the business sector. This is a combination of French and Chinese directions.

Our portfolio unites real estates, a major shopping mall in the South Caucasus that will be finished in the near future and new brands will launch operation there at the end of 2016. - What would you say about the Kutaisi industrial zone project implementation?

We will make focus on drawing Chinese exports and processing companies to replenish the gap in the Georgian production. These steps are of crucial importance for employment, tax collection and attracting foreign investments. Weakly-developed industry – this is what we have seen and we plan to make our contribution to the sector development. I mean both light and processing industries. Kutaisi Industrial zone will be a main project, but at the same time, we own Tbilisi Sea Plaza and Tbilisi Sea special economic zone that has not launched operation at a full capacity. it will be one of the important zones jointly with its logistics center. -Why was the project implementation protracted? - Our main challenge consisted in the 2015

Youth Olympic Games. We had to finish a big village in the shortest period. We had directed all our financial and human resources to timely finish this project. Now we have shifted the focus to the Kutaisi free industrial zone. -Where will you sell the products?

The preferential regime with EU has become a main reason and stimulus for introduction of FIZ and attracting other companies too. We will invite new companies from China and sell our products in the EU market. -According to the spread information, Georgia has launched negotiations with China on free trade regime introduction. What benefits will both countries receive and should we expect more Chinese investments in Georgia? - Georgia has attained a preferential trade regime with the EU and this is of crucial importance for the economic development. Negotiations are underway with China and in case of success Georgian agriculture products will find the best sales market in China, especially Georgian wines. This undertaking is a mutually beneficial process, especially for Georgia. These steps will increase employment and Georgia’s macroeconomic parameters in general. - How would you appraise Georgia’s potential to become a logistics hub? - Georgia is capable of developing all directions. All sectors have a huge potential for development, including Chinese and all other companies from various countries find this country and its investment potential very interesting. Georgia’s geographical location is a factor that preconditions its importance in the Silk Road project. “One Zone, One Rode” is a very useful motto for the Silk Road countries. The Georgian government has taken a very good decision to host the Silk Road Forum in Tbilisi. “One Zone, One Rode” will bring more resonance for the Georgian economic development and social and economic growth. The Silk Road Forum will deepen and strengthen ties between the counties. As a result, Georgia’s global positioning will considerably grow.


SILK ROAD

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GEORGIA WANTS ITS SHARE IN NEW SILK ROAD

For centuries the historical Silk Road connected Asia and Europe by land and by sea. The new proposal of China to revive the ancient concept of the Silk Road, aims to carry forward the spirit of peace, cooperation, openness and inclusiveness for shared benefits. Tbilisi hosted its first Silk Road forum last week. The Forum initiated by the Georgian PM aims at re-creating Georgia’s economic and logistic role in the New Silk Road, initiated by China’s President Xi Jinping. Georgia is eager to participate in the New Silk Road, or “Belt and Road” initiative. Apart from promising a 9-day Railway trip from China to Europe, the country is open for new infrastructural and business projects. Here is what country’s foreign partners had to say about Georgian business potential at Tbilisi Silk Road Forum:

“Silk Road is a Leverage for Attaining Georgia’s All Goals”

“Silk Road will accelerate growth pace of Georgian economy by 2-3% year-over-year”

“If you want to reach Europe, you can start your business here in Georgia”

“If any of Georgia’s Ongoing Projects Needs More Financial Resources, We Will Lend More”

DAVID SHARK World Trade Organization Deputy General

SIMEON DJANKOV Economist, former Deputy Prime Minister of Bulgaria

GABRIEL SCHULZE Founder and CEO of Schulze Global Investments

WENCAI ZHANG Asian Development Bank’s Vice President

he first step Georgia has taken for its market expansion was joining the WTO and obtaining opportunities for cooperating with more than 100 countries. To increase Georgia’s potential, barriers should be removed between Georgia and its neighbors. Georgia follows an open-border policy and provide free customs regime to both passengers and cargo transportation. The Silk Road is an excellent opportunity for you in terms of expansion of trade relations. I believe Georgia is interested in penetrating various markets worldwide.”

f I was in the shoes of the Georgian government, I would increase Georgian economy further by 2-3% at the expense of new Silk Road project. Economic growth pace acceleration is a reality despite the difficulties created by the devaluation of national currency, which should be raised by big infrastructural projects. The project should be funded in Yuan.”

ot only in this region but in the entire world too, Georgia is the fastest developing country that has huge hydro potential,” he said, adding his firm had allocated $100 million USD (about 236 million GEL) to build small Hydro Power Plants in the country. “If you want to reach Europe, you can start your business here in Georgia and then very easily get to the European market through Georgia,”

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here is quite a good relationship between Georgia and ADB. Georgia joined ADB in 2007. We cooperate in various fields such as transport, energy, water sanitation works, financial sector, developing capital market, etcetera … and I am sure Georgia can play a very important role in promoting regional cooperation between Europe and Asia. Georgia will receive a preferential loan of $75 million USD within ADB’s three-year program of budgetary support. Through this loan ADB would help the Georgian Government implement reforms to increase savings and better use its available internal resources as well as create investment potential to avoid unequal distribution of income.


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SOCIAL RESPONSIBILITY

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AGL – A COMPANY’S STRATEGY FOR THE GREATER GOOD OF GEORGIA Shuakhevi HPP - Investment Volume of 400 Million USD

Company With High Social Responsibility AGL (Adjaristsqali Georgia, LLC) is developing hydropower resources on the Adjaristsqali River and its tributaries. The company is implementing one of the largest infrastructure investments in Georgia, the Shuakhevi Hydropower Project (HPP). AGL adheres to high standards of corporate social responsibility in its work by supporting the economic and social development of the Adjara region and improving the living standards of the people in the project area.

Awareness Raising and Education Community Development

English language program

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Support

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Project

development Project

Supporting the development of local business initiatives in the Khulo and Shuakhevi municipalities is one of the main priorities of our company.

AGL has launched a beekeeping project in the Khulo and Shuakhevi municipalities. The aim of this project is to improve and restore the livelihoods of the affected farmers to pre-project level.

We provided training for local residents on business planning and proposal writing, Georgian tax regulations and state incentives for people living in the mountainous regions. Through providing training and grants we aim to improve income generating capacities of local communities and this way facilitate to improve their living conditions.

Farmers are trained in new trends and modern technologies of beekeeping, where they acquire needed skills for setting up beekeeping enterprises. Apart from training, participants are provided with bee families, beehives, and any other necessary equipment.

and Pedagogical Skills Training Training in English language and teaching skills have been offered to local English teachers from the Khulo and Shuakhevi municipalities. Last semester, forty local teachers participated in the program. These teachers focused on practical skills such as classroom management and modern foreign language teaching methods as well as on improving their English language abilities.

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Rural infrastructure development is another social priority for the company. These infrastructure projects are designed for the long-term development of the region. It is important that the infrastructure projects are suited to the needs and wishes of local communities, and so all of the company’s projects are planned with the participation of local populations and municipal governments. The list of the infrastructure projects which

the company is implementing in these municipalities is quite large and includes roads, drainage systems, permanent water supplies, and school facilities such as playgrounds, sports fields, and libraries.

Infrastructural projects target the development and long-term benefit for the region.

Scholarship

Program The Company started its Students Scholarship Program in 2015 in order to support talented local students pursuing higher education. Eight students from the Khulo and Shuakhevi municipalities had their education financed through this project.

Scholarships are awarded to students who are enrolled in state accredited universities in 2014 and have high academic performance. AGL will continue to finance these students’ education for three years contingent upon their continued success on their semester exams.

Last spring, AGL organized an English-language essay competition for local school students on the topic “Georgia in 2045,” in which students were asked to compare the dramatic changes in the last thirty years in Georgia with their visions for the future of Georgia in the next thirty years. 44 students participated in the contest. The goal of the essay contest was to improve students’ writing and critical thinking skills.

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Infrastructure Development

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English

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Internship

Activities

Program

The Company offers school extracurricular English activities for local gifted and talented public school students to help develop their English-language communication skills. These students work with native English speaking teachers in the afternoons to discuss current affairs and local problems in team-based and mock-government debates and interact with representatives of local government.

AGL are helping develop and strengthen professional staff in the Georgian hydropower sector by inviting university students from the Faculty of Engineering at Georgian Technical University to intern at the Shuakhevi HPP. These interns are gaining theoretical knowledge and practical skills by working in different units on rotation. Students participate in the building of power stations and dams and in the construction of tunnels.


CURRENCY CRISIS

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IS CRISIS REALLY OVER? External & Internal Factors 1

Plummeting price on global oil markets: Brent crude oil price fell from $115 in 2014 to $47 today. Lifting sanctions on Iran is estimated to decrease the oil price by 10% more.

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Chinese economy’s drastic slowdown: China’s economic growth has slowed to 6.9 percent in the third quarter of 2015, down from 7 percent in the first and second quarters. However, growth was faster than the 6.7 percent predicted by economists in a Bloomberg poll.

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Russian ruble has devaluated by 65% in 1 year, Ukraine’s grinva with 67%, Kazakh tenge 49%, Turkish lira 35%, Azerbaijan and Euro with 13% these influenced on Georgia’s trade and payment balance.

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Sharp outflow of investments in emerging economies

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The economy is projected to grow at a slower pace in the euro zone countries. The US Federal Reserve’s decision to increase the rates, which would be used to further strengthen the dollar, etc.

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Georgian government’s current “socially oriented” economic policy

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Low pace of privatization and the lack of revenues from this sphere;

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Critically insufficient volume of foreign direct investment: Country’s economy still needs about $1.2 billion of foreign investment;

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Declining revenues from tourist inflows: due to the regional economic crisis, the incoming tourists from Azerbaijan, Russia, Ukraine, Armenia, Kazakhstan, and others are spending less money in Georgia in comparison to the previous years.

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Decreasing money transfers from abroad, including remittances.

Is the economic crisis in the country really over? According to the Georgian authorities the economy has been in recovery. Yet there remains widespread impression that the economic crisis that began in 2014 is far from over. In October, we have the following indicators: National currency is depreciated by 40 percent, rate of economic growth is slowed and inflation rate is at 5.2 percent that is predicted to reach 7%.

Government’s Economic Team and National Bank are Capable of Stabilizing GEL Exchange Rate

Financial System Continues Valuable Operation and Maintains Functional Efficiency

he GEL exchange rate was stabilized and extreme currency volatility was neutralized. Naturally, the society raises questions: Has the currency crisis ended and should we expect new shakes in the midterm perspective? Naturally, similar questions and, the interest, in general, are quite legitimate. Currently the GEL exchange rate is fixed at 2.382.40 point and the existing stability is based on two main factors: 1) Slowdown in consumption. As a result, the imports have declined, as the imports ratio in consumer basket is significant. And contraction in imports signifies a downturn in demand for foreign currency and a decline in outflow of foreign currency from Georgia. As a result, this tendency has made a positive effect on the GEL exchange rate and the devaluation process is over. 2) We should realize finances and the exchange rate issues are largely influenced by moods and expectations in the society and the business sector. In this light the important fact is that the government’s economic team and the National Bank of Georgia (NBG) have gathered at a round table and jointly assumed the responsibility to tackle the GEL-related problems. They have started taking coordinated and agreed steps. Naturally, all factors that fuel the GEL depreciation and the national currency vulnerability have not been eradicated, but the current situation enables to forecast that a joint, coordinated efforts will enable the economic team and the NBG to somehow stabilize the national currency in the midterm period. If the Government ensures a growth in FDI inflow, if the Finance Ministry carries out efficient budget policy and the NBG rationally applies the monetary policy instruments, then real steps may be taken for the GEL rate strengthening at the next stage.

he current situation in our economy may be called a currency crisis, not a financial crisis or an economic crisis. Noteworthy, Georgia has not developed criteria and instruments to determine a crisis situation. We know that a financial crisis signifies a downturn in prices on financial instruments, shares, securities and the incapability of financial institutions to fulfill liabilities. There is no developed stock market in Georgia, as a main source and important indicator for the financial stability. Consequently, it is difficult to make a valuable diagnosis. Therefore, many serious problems may exist invisibly. If we explore the global exchanges, where Georgian securities are traded, no extreme negative changes are discerned amid the GEL devaluation. Nor obstacles are notified in terms of fulfillment of liabilities, for example, the financial sector faces no difficulties in satisfying the depositors’ interests. To put simply, the financial system still continues valuable operation and maintains functional efficiency. This signifies the country faces no financial crisis. As to the currency crisis, despite the slowdown in devaluation, negative effects have not been eradicated completely. In general, the crisis completion signifies at least the pre-crisis period should have been returned. But today we have not restored even the ore-crisis situation. Population and companies have to pay higher interest rates on loans and this situation makes negative effects on consumption market, savings and consequently, investments.

LEVAN KALANDADZE Economic Analyst

NODAR CHICHINADZE President of the Association of Young Financiers and Businessmen (AYFB)

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HEALTHCARE

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GEORGIA DID IT – SERGEENKO PRESENTS THREE YEARS OF HEALTHCARE REFORMS Emphasizing Introduction of Generics Minister of Labour, Health and Social Affairs of Georgia presented three years of reforms in health care to public.

Sergeenko accentuated Hepatitis C elimination program as the main achievement of country’s healthcare sector.

Society is sensitive to the increasing prices of drugs. Prices are a burden for them to continue their treatments. That’s why we need to decrease pharmacy expenditures. Generic drugs are the most optimal way out.

“It is important that in the frames of this program 3100 patients are undergoing treatment,” Minister noted. Minister also presented consequences of Healthcare Universal program. Other future prospects such as: Primary healthcare, implementation of Universal healthcare cost sustainable system, quality control and electronic prescription systems were discussed and presented on the event.

“Jean-Elie Malkin: We Will Give

According to him one of the main components of the Ministry is reinforcement of drug quality control. The Ministry of Health is planning to establish new standards in terms of quality control of drugs. How quality control and new regulations will affect increased price, Sergeenko explains: Pharma industry is one of strictly regulated sphere in the world. Unfortunately, here this sector is deregulated. No existence of quality control creates a problem, we do not know what quality of drugs people use. Absence of quality of control systems block us, to purchase the Generics, because we do not have objective evidence of quality. Minister notes that introduction of Generics will considerably decrease prices of drugs. Minister considers that expending Generic segment is inevitable, to increase drug availability and to encourage local production. However for implemented those mentioned we need to execute system of quality control of drug, the Ministry has started working intensively on those reforms and results will be known soon.

the Minister Full Support as Global Alliance Amiran Gamkrelidze: Generic Drugs Should be Affordable for Georgian Population Amiran Gamrkelidze Director General of the National Center for Disease Control joins in with the conversation on Generic Drugs in Georiga.

We want the citizens to be able to purchase these generics, obviously. So we are working on making them affordable”. “Generic drugs are the same as brand medicines, as they are called – their composition is the same as the brand medicines’. Generic release shall be granted after the patent of purchased brands expires. This is the so-called International patent protection mechanism. The only exception was made in the late nineties, when the AIDS medicines allowed Generics. Thus a Generic, which goes to the laboratory quality control, is of same effect as the brand drug, ” Director General of the National Center for Disease Control Amiran Gamkrelidze explains. “It is global practice to prescribe precisely generic drugs. Therefore, the Ministry is working on implementing this project in Georgia. I think that this year we will already have a specific strategy. ” As for the prices of medicines, Gamkrelidze considers that medicines cannot be cheap. ” Creating a new drug costs about a billion dollars, and it needs quite a long period – 8-14 years. The problem should be regulated in the other direction; the system must be held and controlled.

Jean-Elie Malkin, president of the Global Alliance for Health and Social Compact, reinstated his support to Georgia’s healthcare. Dr. Malkin gave a brief update prior to the three-year report that will be presented by Georgia’s Minister of Health, David Sergeenko, and acknowledged the Minister’s commitment to healthcare and ensured that improvements were underway. “As president of the Global Alliance, I have been working with the Minister and his colleagues for more than six months. I can assure you that we are moving forward to improve the health system,” stated Dr. Malkin. He further emphasized the progress made for introducing universal health coverage and praised the Minister’s efforts in making the coverage both effective and cost-efficient. Jean-Elie Malkin also commented on the program aimed at eliminating hepatitis C.

“I would like to emphasize the huge and unique program for reduction of hepatitis C, which is the first of its scale in the world. It will make Georgia into an example for all countries affected by hepatitis C” For future prospects, Dr. Malkin stated that primary health care has been set as a priority by the Minister of Health, and that the Global Alliance was working very hard to improve it on its own, further emphasizing the importance of saving the care delivery system by focusing on primary healthcare for the population.

“I would like to encourage the minister and to ensure him that we will give him full support as Global Alliance to move together in order to improve health system in Georgia,“ said Jean-Elie Malkin in the statement.

Valeri Kvaratskhelia: Implementation of Quality Control of Drugs is Georgia’s Obligation To EU The Ministry of health is starting implementing new standards for quality control of drugs. The Minister David Sergeenko considers that expanding Generic segment is a prerequisite for encouraging local production. The Ministry with the help of foreign and local consultants is trying to reach EU regulations. As for the possible changes, it is a very hard issue, that’s why we made a decision to make some corrections in drug law, which will be known to public soon,” noted Deputy Minister Valeri Kvaratskhelia. As for Generic drugs, Deputy Minister sees nothing unusual:

Pharmaceutical companies did bring Generic drugs before, and will bring in future as well, If we had only original and brandy drugs on our market, prices would be much higher some countries banned original drugs and oriented on Generic drugs by doing so they decreased the expenses. Generics have their positive sides, with cost. that’s why bringing new ones is not an issue. We need to expand its spectrum.


October 26, 2015 #119

ECONO-MIX

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THREATS FROM “EASY LOAN”

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ongratulations, Your Loan Approved” – commercial banks send similar messages to Georgian citizens every day, sometimes twice a day. Many and many financial organizations offer various tempting proposals to shove their loans. The bank sector specialists assert this is an ordinary business and it is inadmissible to restrict advertising bank products or offering loans to the population. The fact is Georgian citizens damaged by usurers and commercial banks resort to permanent rallies. Some of them threatens with committing suicide and asks the Authorities for assistance. This situation with our citizens, who receive the mentioned messages, could be compared to these words: “Pardon, Death Knocking on Your Door!” It is worth noting this type of consumer loans charge a high interest rate of 36% because of high risks. Frequently, borrowers become insolvent in several months. As a result, commercial banks resort to blackmails and pressure and seize their property. Finally, commercial banks return their loans, but Georgian citizens get further impoverished. Mariam Tolordava’s family has already suffered from this bank product. Tolordava used to reside in a four-room apartment of the Czech project. Her unemployed husband took the socalled easy loan, spent the money in a betting house and lost the sum. The family knew nothing about this. After a certain period, the bank warnings and requests led Mariam to depression. She had to visit a psychologist and buy expensive medicines. Finally, the family learnt her husband had taken another loan to serve the previous credit. The unemployed person could not pay the loan, naturally. The heavy situation led the family to selling a big house and they bought a small one. They also bought a cheap vehicle by the remaining money so as the husband could work as a taxi driver.

“This loan beckons like a drug. My husband was repenting his conduct but we have recently found he has taken a new credit from one of the finance organizations. As a result, he could not pay interest rates and he had to sell the new vehicle too. Tomorrow he may even sell this house. It is surprising these organizations issue credits to unemployed persons. Similar approaches may ruin the whole country. The Authorities should, first of all, tackle this issue. It is inadmissible that finance organizations, including

commercial banks, make a fortune at the expense of socially vulnerable citizens. We hire the Authorities to be protected from similar threats and this is a genuine ordeal”, Mariam Tolordava noted. Giorgi Tsutskiridze, a representative of the Association of Banks, says commercial banks compel nobody to take loans and clients should determine themselves whether the loan terms are acceptable.

“When our citizens receive loan proposals from commercial banks or finance organizations, this is a usual process. This signifies this is an ordinary form of making an offer. Credit offers are sent to the clients, who have opened salary accounts in specific banks, or to the potential clients. Loans are approved if

the client agrees on the terms. This process does not proceed in automatic regime. Before the loan approval, commercial banks explore whether the client is solvent. If the client is insolvent, naturally, commercial banks will not approve the loan. This signifies no one is forced to take loans. I just reaffirm this is an ordinary offer” Giorgi Tsutskiridze said. The bank sector expert Vazha Kapanadze says insolvent citizens should not take loans, while the financial activity is an ordinary business in the form of selling financial products. This is an ordinary product like goods and products in stores and supermarkets. People should decide themselves whether they need this credit. People without incomes should not take loans or they should take consultations from competent individuals, Vazha Kapanadze said. However, in the country with the sharpest

unemployment problems and 1.5 million socially venerable citizens the so-called easy credits may become a new headache for the government. Naturally, people make decisions themselves to take a loan or not, but there is much temptation in this respect like drugs and gambling games. The relations between a commercial bank and a client are regulated by the law. The parties sign a bilateral agreement and both parties get obliged to fulfill the agreement terms. However, it should be also noted agreements basically describe the rights of commercial bank, while the rights of clients are indicated in a minimized form. The low culture of healthy relations with commercial banks is an additional major problem in Georgia. Our citizens take loans without exploring the agreement with a commercial bank. Anyway, even if a client reads the agreements, the terms are very complicated and less understanding. Consumers are unaware of their rights in relation to commercial banks and of how to get rid of the expected problems. By the way, several years ago the Authorities proposed to set up a Bank Ombudsman’s office, but this issue was forgotten and the client remains before the finance sector.

TAKE A BREATH WITH HOPE – GEORGIA MARKS WEEK OF IDIOPATHIC PULMONARY FIBROSIS

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eorgia together with the whole world marks a week of IPF, Idiopathic Pulmonary Fibrosis, a special press conference was organized by IPF patient union and Georgia’s respiratory association and foundation

of Genetic and rare diseases at Radisson Blue Iveria Hotel. IPF is a very rare and irreversible disease, that has higher mortality rate than the other malignant cancers. Slogan of this campaign is “Take a breath with hope”. Soap bubbles are the main

attributes and symbol of the program. The main purpose of the press conference, is to inform public about the rare disease – Idiopathic Pulmonary fibrosis, in order to timely discover and make proper treatment management of its aftermath. Participants of this press conference discussed and highlighted the severity of disease and the importance of right treatments. “Our aim for today’s meeting is to inform society about one of the rarest respiratory diseases, which is irreversible progressive disease, more than 5 million people around the world is diagnosed with the disease, in Europe approximately 110,000 people battle Idiopathic pulmonary fibrosis,” Dr. Elene Sherozia said. Idiopathic pulmonary fibrosis is marked from 2012, in the whole world and Georgia actively joined them this year. Georgia’s inclusion in world week is a very important event, public needs disease awareness.

in the world, and this week has been marked since 2012, Georgia joined the activity. The inclusion of the World Week is an important event. Disease of the society’s awareness is important, because 60% of patients who have not yet been accounted for and are not directly in contact with the doctor. “Similar weeks are held in the world since 2012, Georgia has fortunately is not late, and has joined 3 years later. The disease is quite severe and if not treated it has fatal results “- the representative of the Georgian Respiratory Association Kakha Kvachadze said. “Fund of the Genetic and Rare Diseases expresses its support for those patient organization that formed recently. We hope that this decision will be the basis of the fact that desired result will be achieved with the collaboration of Health care structures. “-the president of the Georgian Foundation for Genetic and Rare Diseases Anna Bokolishvili noted.


BUSINESS

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GEP’S TBILISI’S NEW BAR SPOT OWNED BY A YOUNG COUPLE

The burger bar was founded by Giorgi Gelashvili and Sophi Khojava, spouses, who have been long providing fastest tuning of motorcars. Motorcar boxes are their hobby, another office or house, where they gather jointly with a wide circle of friends every evening. They tune vehicles and attain results that are distinguished worldwide! It should be also noted Sophi Khojava is an only professional drifter girl in the South Caucasus, who has recorded the fastest starting speed of 165 km/hours. This family and their friends adore iron stallions. As a result, they decided to open an asset (later, a bar) in front of the car boxes on the Giorgi Mindeli Bridge that would embrace the service (DYNO), entertainment and a yummy menu. The asset was planned as an interesting place for potential clients and a house for friends.

- When was you the restaurant unveiled? - Our restaurant opened in spring 2015. Founder Sophi Khojava set up the asset tanks to tireless efforts and assistance of friends. Initially, the asset was designed to host only friends, but today the asset serves all visitors and guests. Therefore, the bar meets you with friendly and family environment. - Do the Georgian customers like the restaurant’s environment? - European and American dishes predominate in our menu. Therefore, we try to essentially adapt our menu to the Georgian appearance and soul. For example, last period the Shins menu was the most popular dish, but we did not prepare this one and we added a menu of Ribs and it has become very popular. - Which dish is the most popular at your restaurant? - GEP’S Burger, pig/cow stake and mozzarella sticks are our most popular dishes. The menu is permanently renewed and we offer many innovations to our clients. - How active job do you perform in social networks and how much interest does the society show in your restaurant services? -Our Facebook page is https://www.facebook.com/BarGeps. I would say the society shows much interest and we often host

guests, who receive information about our bar from the Facebook page. - Your restaurant is reported to be carrying out various social campaigns such as “No, We don’t Have Wi-fi, Talk to Each Other!” What is the purpose of this campaign and how this campaign has justified in terms of marketing? - I think this campaign has justified, because new technologies dominate in the contemporary world and virtual relationships predominate in our everyday life and less time is left for real relationships. Therefore, we have decided to introduce new rules and ban the WiFi access at our bar to make relations more real, healthy and vivid. As to the internet access, in general, we provide limited internet access too, if necessary. - How would you briefly describe your visions, mission and values… - The bar was arranged for those, who idolize motorcars, but we strive to avoid segmentation frameworks.

October 26, 2015 #119


COMPANY NEWS

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TURKISH AIRLINES CARRIES 46.5 MILLION PASSENGERS IN NINE MONTHS

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he number of passengers carried by Turkish Airlines surged by 12.2 percent in the first nine months of the year compared to the same period last year, according to a stock exchange filing on Oct. 19. According to the statement released on the Public Disclosure Platform (KAP), the flag carrier showed an increase of 5.1 million to reach 46.5 million passengers in 2015, up from 41.1million passengers within the same period in 2014. Passenger numbers on domestic routes were up by 9.1 percent, while international Business and Comfort Class passengers increased by 6.2 percent and international-to-international

transfer passengers increased by 16.8 percent over the same period. Load factor, however, decreased by 0.8 points to 79 percent over the same period, according to the statement. The number of flight destinations rose to 277 from 260, with domestic destinations up to 48 from 43 and international destinations up to 229 from 217 by the end of September 2015 compared to the same month of 2014. The number of aircraft in service also rose to 298 from 265 in September 2014. Turkish Airlines offers flights to over 250 destinations in over 100 countries across Europe, Asia, Africa, Australia and America, according to the company’s website.

TURKISH HOLDING COMPANY TO INVEST IN GEORGIA’S TEXTILE INDUSTRY

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fter investing in the country’s growing energy sector, Istanbulbased Calik Holding revealed it was interested in developing Georgia’s textile production. Calik Holding chairman Ahmet Calik met Georgia’s Prime Minister in Tbilisi today and shared his plans of future investment in Georgia. The Turkish conglomerate is already a major investor in Georgia. Together with Georgia’s state-owner share-

holding company, Partnership Fund, Calik Holding helped build a $230 million USD combined-cycle power plant in Gardabani, in Georgia’s Kvemo Kartli region. The new Combined Cycle Thermal Power Plant is expected to begin producing power later this year. Calik Holding is active in the sectors of energy, telecom, textiles, construction, finance and mining. Through its ventures in Turkey and 16 other countries, the company employed around 24,000 people.

LAGIDZE WATERS FAILS TO EXPAND SALES MARKET

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agidze waters” cannot expand its export markets due to the fault of Russian partners. According to the company’s founder Tornike Lagidze, Russian partners can’t pay the cost of exported products and the Georgian side does not know whether it will continue to cooperate with them. “Lagidze waters” plans to export the syrup to Ukraine, Armenia and Azerbaijan. About 2030 tons of syrup are sent to Russia monthly. Export of “Lagidze waters” to Russia was suspended in 2013 due to the non-payment of the amount for 30 tons of syrup by the Russian company “Tikhvin lemonade plant.

EXIM BANK TO FUND PROJECTS OF 0,5 MILLION EUR

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xim Bank will be involved in aqua park and hotel construction projects in Bakuriani. Igor Likhnovski, chairman of Supervisory Board of Exim BankSlovakia declared at the meeting held with Georgian Prime Minister. They talked about the investment environment and noted, that implementation of investment projects, cost of 500 million EUR is targeted. The bank considers funding of eco-transport

project in Tbilisi and development of residential infrastructure and entertainment centre at the nearby-area of Tbilisi Sea as well. The issue was discussed at the Partnership Fund. The workshop was held by Igor Likhnovski, chairman of Supervisory Board of Exim Bank- Slovakia and Nodar Giorgadze, general director of EUROCOM. The guests has submitted concrete investment proposals to the management of the Fund. Exism Bank has already funded projects of 30 million EUR in Georgia.

“COMPANY OF GEORGIAN CONSTRUCTION MATERIALS” WILL OPEN CEMENT PRODUCING ENTERPRISE

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he government delivered to the investor land area of 263 265 sq/m at 1 GEL within the project frame “Produce in Georgia”. “Georgian Construction Materials Company”, the company should implement investment of 8,867 million GEL in order to meet the privatization conditions. Ac-

cording to the scheduled plan, the plant must produce at least 400 thousand t product in a year. However, the company has obligation to produce merely 25% of the planned capacity. As of the news published on web-site of the State Property Agency, the value of real estate delivered to the investor exceeds 2,216 million GEL.

BUSINESS CAFÉ – JOINT PROJECT OF INSOURCE AND PASHA BANK

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n October 21st Insource and PASHA Bank launched their joint project “Business Café” and organized its first gathering. The project aims to organize meetings of middle and top-management representatives from different companies where they will be able to discuss specific work-related subjects and share experience with each other. The first meeting was held at Holiday Inn Tbilisi and the two companies are planning to organize one more meeting till the end of the year. It is the first time for this kind of meetings to be held in Georgia and they will serve as a place for discussions over the current processes and news from different fields of business. The meetings will host up 20 participants and will be moderated by a special guest who will share own experience with others. The subject of the first meeting was manage-

ment of human resources and the moderator was David Gogichaishvili. “Insource as a business consulting company always try to make contribution in development process of Georgian business. Business café is the meeting point (place) where top and middle level managers will share their best practice, knowhow and discuss the future changes and improvements in management and people management,” – said founder of Insource Medea Tabatadze. “Supporting this project is a part of the strategy that PASHA Bank has been realizing since its foundation day in Georgia: we always try to contribute to the projects and events that help professional growth and business development in Georgia. We are more than happy to have the opportunity of join Insource in initiating such an interesting and useful project,” – commented Anano Korkia, head of PR and marketing department at PASHA Bank.

QATAR AIRWAYS REAFFIRMS ITS COMMITMENT TO GEORGIA ROUTE OFFICAL AIRLINE PARTNER TO EMBASSY CELEBRATIONS More than 100 attendees take part in celebrations at the Sheraton Hotel in Doha to mark this year’s Tbilisoba celebrations

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atar Airways was this week Official Airline Partner to an exciting day of celebrations at the Sheraton Hotel in Doha to mark the official weekend celebrations of Tbilisoba, hosted by the Georgian Embassy of Qatar. Tbilisoba is an annual festival held in Georgia in October every year to celebrate the diverse history of the Georgian capital, Tbilisi. First celebrated in 1979, the event has become synonymous in Georgia with open air concerts and music from the country’s rich cultural history. To mark the event in Qatar, the Georgian Embassy hosted a day of celebrations which culminated in a special performance of traditional folk songs by the Georgian choir, Georgika, with guests enjoying a reception in the garden area of the newly refurbished Sheraton Hotel. Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker said: “Qatar Airways’ services to Tbilisi continue to cater to a growing demand of passengers attracted by the hospitality and quality of our on board product, as well as the seamless connectivity offered by Hamad International Airport, an airport designed by an airline with the passenger experience firmly in mind.” Speaking at the event, Her Excellency Ekaterine Meiering - Mikadze, Ambassador of Georgia

to the State of Qatar, highlighted the importance of celebrating the history of Georgia, a country connected to Qatar Airways’ global network with daily scheduled flights. Her Excellency Ekaterine Meiering – Mikadze said “Since starting daily flights to Georgia in 2012, Qatar Airways has brought the two countries much closer to each other. As a result, contacts among people from all walks of life have multiplied, in business, diplomacy, and tourism. I am delighted to see Qataris and expatriates working in Doha flocking to Georgia in ever increasing numbers and I am grateful to Qatar Airways for the pioneering role and ongoing support in helping others to discover Georgia.” Qatar Airways currently operates daily flights to Tbilisi from its home and hub, Hamad International Airport, connecting passengers onwards to more than 150 destinations around the world. At the annual Skytrax 2015 World Airline Awards in June, Qatar Airways was awarded World’s Best Airline, Best Business Class Airline Seat, and Best Airline in the Middle East. Qatar Airways has seen rapid growth in just 18 years of operation and today flies a modern fleet of 166 aircraft to 152 key business and leisure destinations across Europe, the Middle East, Africa, Asia Pacific, North America and South America.


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QATAR AIRWAYS – ANSWER TO FUTURE ECONOMIC CHALLENGES Kakha Magradze PR Advisor

The Airline of the Future that Goes Ahead of the Time

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et’s start with facts and indicators. Qatar Airways has won several awards at the Skytrax world airline award ceremony in the following nominations: the world’s best airline of the year, the best business class seat and the Middle Asia best airline of the year. For the third time, Qatar Airways has obtained the title of the world’s best airline of the year. The airline transports passengers and consignments to 152 destinations worldwide. Founded in 1993 the airline launched operation in January 1994 and currently Qatar Airways employs 19 000 persons and holds 166 airplanes performing flights to various destinations in Africa, Central Asia, Europe, Far East, South Asia, Small Asia, North America, South America and the Oceania. To put simply, Qatar Airways is one of the leading air companies in the world.

What factors Have Ensured Such Success for 20 Years?

Since the independence announcement in 1991, Georgia’s economic policy experts have been complaining about a lack of the so-called strategic natural resources to ensure quick progress and welfare in the country. This consideration was very popular in that time. Because of a lack of knowledge in the modern economy principles, our society was seeking alternatives to natural oil and gas and relied on mineral water and tea. But it turned out, and modern tendencies of the global economy development more evidently emphasize this consideration, everything comes to the end. Natural resources also expire after a certain while and no resources are able to ensure eternal welfare. Qatar Airways is a product of this finding and

this is one of the answers of Qatar to the future challenges. Founded in 1993 the company received the first profits in the 2004 fiscal year. At the end of 2004 Qatar Airways Group, which, besides airlines, unites cargo company, a Hamad International Airport and other companies, had transported 3.5 million passengers and continued efforts for getting into the list of leading airlines. In 2007 the company sealed a mutual understanding memorandum with Airbus company and they set up strategic partnership. However, the success of Qatar Airways was not driven by only the strategic choice and reasonable investing of revenues from natural resources extraction. The company CEO Sheikh Akbar Al Baker noted the success is based on a combination of three main aspects: service of high-standard flights, best onboard products and refined operating performance. There are trivial phrases and ready clichés that describe the performance of a business organization, including such as: “always consumer-oriented”, “consumercaring”, “innovation-oriented and so on. These terms are frequently used to bubble the performance of this or that company. As to Qatar Airways, all these terms seem natural and accurate in relation to this airline, but they incompletely reflect the airline’s performance and its competitive advantages. Starting with simplicity in booking and buying a ticket ending with entertainment services onboard, Qatar Airways has been moving to service improvement to maintain competitive advantage. Top quality in food services, skilful and well-trained staff, ultra modern airplanes and the vast space at Hamad International Airport in Doha – All these aspects grant a title of the airline of the future to Qatar Airways that has become a favorite air company for consumers oriented on quality and comfort.


WORLD NEWS

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TWITTER CHIEF SHARES £128M OF STOCK WITH EMPLOYEES

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witter chief executive and co-founder Jack Dorsey has said he will give a third of his shares in the firm to employees. The total stock is worth about 1% of the company, or $197m (£128m). The plan is to “reinvest directly in our people,” said Mr Dorsey, who was appointed as the company’s permanent leader earlier this month. Twitter did not comment further on the decision. Last week the company said it would lay off 336 workers, or 8% of staff. Mr Dorsey, who took over as temporary chief in July after Dick Costolo resigned, also tweeted “I’d rather have a smaller part of something big than a bigger part of something small.” Last week, former Microsoft chief executive Steve Ballmer said he bought a 4% stake in Twitter, making him the third-biggest individual shareholder. Mr Ballmer now owns more of Twitter than Mr Dorsey, who owns about 3%. One Twitter employee told the BBC’s New York business correspondent Michelle Fleury via Twitter that “folks are ready to run through walls for him and the company. Before...and even more now.”

$86 billion market value loss sustained by Turkish stock exchange

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ompanies trading on Borsa İstanbul, Turkey’s stock exchange, lost $86 billion in market value during the first nine months of this year, according to figures from the Turkish Investor Relations Society (TÜYİD). While the total market value of the firms trading on Borsa İstanbul was pegged at $266 billion at the end of last year, it had receded to $180 billion as of September. The banking sector sustained the largest percentage of this loss, accounting for $36 billion. Many foreign buyers this year opted to sell their stocks in banks and purchase shares in holding companies and other commercial firms. Foreigners nevertheless still held the largest quantity of stocks in banks, a total of TL 44 billion, followed by TL 37 billion in industrial firms and TL 33 billion worth of stocks in the service sector. A damaged lira that has lost around 25 percent of its value in conjunction with regional and domestic instability has weakened Turkish markets, hindering exports and resulting in growth forecast revisions. The World Bank’s “Turkey Regular Economic Brief,” issued last Tuesday, said that Turkish economic activity is expected to decelerate in the second half of 2015 against the backdrop of continued political uncertainty. “There is an urgent need for political stability and to return to implementing the structural reform agenda to restore investor confidence, address vulnerabilities and lift growth,” read the brief. Turkey’s economy grew a greater-than-expected 3.8 percent in the second quarter, a rare positive surprise for a government grappling with expectations of a second-half slowdown in growth. Faster-than-expected Turkish economic growth in the second quarter has prompted the World Bank to revise its 2015 growth forecast to 3.2 percent, but it predicted that inflation would remain above target at around 7.5 percent by the end of the year.

SOCAR builds new facility at oldest field in Caspian Sea

Armenia national currency reaches lowest level for 2015

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he Armenian national currency, the dram, on Wednesday sharply appreciated against the US dollar, reported Haykakan Zhamanak daily. “At the [currency] exchange offices, the purchase price of one dollar reached 468 drams, which is the lowest indicator this year. “All factors that affect the dram’s exchange rate should have contributed to the devaluation of the dram. In particular, exports have dropped, remittances have dropped, the Russian ruble has started depreciating again, etc. “But the most noteworthy is that, despite the appreciation of the dram, the CB [i.e. the Central Bank of Armenia] did not buy cheap dollars from the market, thus it did not prevent the sharp appreciation of the dram. Had the dram depreciated by that much, the CB would not have hesitated and filled several tens of millions of dollars to the market. “This shows that the CB is playing in favor of the appreciation, and not the stability, of the dram,” wrote Haykakan Zhamanak.

Russia to supply generators to Cuba

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he Russian government has ratified an agreement to provide generators at the Maximo Gomes and Este Habana power plants in Cuba. According to the Russian government website, the Maximo Gomes power plant in Mariel municipality will be equipped with a 200 MW unit, while Este Habana in Santa Cruz del Norte municipality will have three 200 MW generators installed. Inter RAO – Export, a subsidiary of Russian energy producer Inter RAO will team up with Energoimport, which is a part of Union Electrica of Cuba. Union Electrica is a Cuban state energy company with a total capacity of 3.7 GW specializing in the generation of electricity from thermal and hydro power and the country’s renewable sources of energy, and also the transmission and distribution of electricity. The financial details of the deal will be disclosed in a further contract. Under the agreement, Inter RAO and its contractors won’t have to pay tax and customs duties; the employees will also be exempt from paying income tax. The possible deal was announced by President Vladimir Putin last summer, when he said Inter RAO could participate in the construction of power generators in Cuba. In July 2014 Russian RusHydro, a power generating company with 38.5 GW installed electricity generation capacity and Union Electrica signed a memorandum of understanding on modernization and building of new hydroelectric power plants in Cuba.

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he SOCAR company has completed the construction of platform No.1954A on the Oil Rocks offshore oil field, said the message of the SOCAR company, posted on its

website. The message said that the platform is designed for drilling 10 wells and is located on a site with a sea depth of 17 meters. It is expected that the total daily production rate of wells to be drilled from this platform, will be 100 tons. “Five basic blocks, four interstitial sections, six landing and berthing areas were installed during the construction,” said the message. “An overpass with a length of 28 meters was also built, 384 concrete slabs installed, 30 piles were hammered under the support blocks. These structures were brought to the design point with the help of “General Aliaga Shikhlinski” floating crane, said the message. SOCAR’s “Neftqaztikinti” trust is the contractor of the construction on the project of the Baku State Design Institute, while “Azneft” production association is the customer of the project. Currently, SOCAR is implementing the program on stabilizing and increasing the oil production volume. To this end, the State Oil Company drills wells both at onshore and offshore fields in Azerbaijan. The company produced 5.54 million tons of oil from offshore and onshore fields of the country in January-August 2015, or 1.4 percent less than in the same period of 2014 (5.62 million tons). In total, SOCAR produced over 8.32 million metric tons of oil in 2014, compared to 8.31 million metric tons in 2013. Over 42.4 million metric tons of oil was produced in Azerbaijan in 2014, compared to 43.5 million metric tons in 2013.


PUBLICITY

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October 26, 2015 #119

International Network “Aesthetic Medical Clinics Group” – Prague, St.Peterburg, Tbilisi

CLINIC MEDI

Full span of State of Art Dentistry . . .

Diagnosis and treatment at CLINIC MEDI are carried out in all major areas of dentistry: therapy, orthopedics, micro, maxillofacial surgery and implants, periodontics, orthodontics, pediatric dentistry, as well as X-ray diagnostics with the ability to receive a 3D-image. All kinds of dental work performed using innovative materials and modern equipment that ensures a high level of quality of care, can achieve the most accurate and efficient results. All dental procedures are conducted by qualified experts with considerable experience, unique knowledge and clinical skills. The system of clinics MEDI identified Level 2 clinics, depending on the volume and complexity of services: the elite and business class. COMPUTER 3D-DIAGNOSTICS - 3Dtomography - a digital three-dimensional image of dental systems, obtained by X-ray diagnostic study, which was made possible by a fundamentally new diagnostic equipment - dental 3D-computer tomography. Doctors of MEDI are able to work with more accurate, more detailed threedimensional images, which greatly enhances and improves the efficiency of dental treatment. DENTAL TREATMENT - Treatment of caries and aesthetic restoration, Root canal treatment. At the final stage of the channel using the cream with hot gutta-percha - a plastic material that provides tightness without undue pressure on the walls of the root MICROPROSTHETICS - inlays, onlays, crowns and veneers in only one appointment! Dental Robot with the most precise computer technology!!!! PEDIATRIC DENTISTRY - including all modern technologies of therapy, surgery orthodonty; Teeth Whitening - Clinical whitening, Laser whitening TREATMENT OF GUMS (periodontics)full span of paradontology PROSTHETICS TOOTH - Prosthetics zirconia, Prosthetics on noble alloys, Prosthetics on Metal Ceramics, Prosthetics on ceramics, partial denture SURGERY AND DENTAL IMPLANTS Implantation Exodontia SURGICAL TREATMENT Surgical preparation for dental implants

50% Discount For Consulting and Professional Oral Hygiene

Clinic MEDI 52 Kostava str. Tbilisi 291 00 00

ORTHODONTICS Installation of aesthetic bracket systems Installation of metal braces Installing lingual braces Installing lingual braces Incognito Installing lingual braces WIN Installation of orthodontic appliances Orthodontic appliances Service PROFESSIONAL ORAL HYGIENE Professional hygiene for adults Professional hygiene for children ABSOLUTE SAFETY OF PATIENT = ONLINE ANTI-VIRUS, ANTI-SPID PROGRAM Clinic MEDI 52 Kostava str. Tbilisi 291 00 00


October 26, 2015 #119

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Av., Tbilisi Tel: 225-20-72/73/74/76 E-mail: turkemb.tbilisi@mfa.gov.tr Address: 8, M. Abashidze str. Batumi, Georgia; tel: (8-88-222) 7 47 90 Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00 Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.es Romania Embassy

TBILISI GUIDE

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caucasus business week

7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:tbilisi.amb.sekretariat@msz.gov.pl Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: iraqiageoemb@yahoo.com Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: iranemb@geo.net.ge United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: registry.geo@undp.org Web-site: www.undp.org International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: kdanelia@imf.org Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail: adbgrm@adb.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia ; Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail: emb.tbilisi@mzv.sk

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: info@hi-tbilisi.com Website: http://www.hi-tbilisi.com BETSY’S HOTEL With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: info@betsyshotel.com Website: http://www.betsyshotel.com

Restaurants CORNER HOUSE Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: contact@cornerhouse.ge RESTAURANT BARAKONI Restaurant with healthy food. Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 www.barakoni.com CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi; Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,

SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50

Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89

Real Estate International Real Estate Company (IREC) Tbilisi. 9 P. Aslanidi St. Tel: +995 32 238 058 Mob: 599 95 76 71 Email: Info@irec.ge www.irec.ge

GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental fleet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition. Contact information: Email: info@gsservices.ge. Address: Shalva Dadiani 10

Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432

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

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


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PUBLICITY caucasus business week

October 26, 2015 #119