Caucasus Business Week #173

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December 12, 2016 #173

December 12, 2016, Issue 173 - www.cbw.ge

Event Beeline transforms to enable new digital services in Georgia Pg. 7

Marjanishvili Theatre Theatre’s “Begalut – in Exile” in Cameri International Festival of Theatre, Israel Pg. 12

Econo-mix AYFB about Expected Hazards after Growth in Tobacco Excise Tax

Georgian Honey with No Perspective on European Market

Pg. 4

Government and National Bank Take Joint Efforts against Dollarization Government of Georgia has recently introduced a 10-clause plan and dedollarization policy is one of the key directions.

Both government and National Bank of Georgia (NBG) declare that dollarization level is very high in the country. According to October 2016 indicators, deposits dollarization indicator in October rose by 0.5% and made up 69.7%. Because of high dollarization, the national currency devaluation has badly affected Georgian citizens, because a major part of borrowers have taken USD-denominated loans, while they receive wages in GEL. According to the Government plan, in January-February 2017, USD-denominated mortgage loans issued before January 1, 2015, will be converted due to the then exchange rate minus 20 points, of which 20 Tetri will be subsidized from the state budget.

At the same time, starting January 1, 2017 loans of about 100 000 GEL will be issued only in GEL, while the top margin will rise to 200 000 starting 2018.

Pg. 4

Economics of Autism Medical tourism counts over 3 thousand years. Bathing establishments were an integral part of sports facilities in Ancient Greece. After the Romans had conquered Greece, they took over not only its arts and sciences, but also its experience in hydropathy, or water cure. Unlike the Greeks, however, who were using only cold water in their baths, the Romans started building baths and swimming pools using the water of the hot springs—they called them thermae (from Greek thermos, “hot”).

The word came into usage after a town’s name in Sicily where the waters of the hot springs had been used for healing purposes: it was called Thermae. One more term of the medical tourism is ‘spa’, and it is related to a small town in Belgium, Spa, located in the foothills of the picturesque Ardennes.

Pg. 11

2 GOVERNMENT

NEWSROOM Visa Suspension Mechanism: Council Confirms Agreement with Parliament The agreement was reached between the Council, Parliament and Commission. The main objective of the revised regulation is to strengthen the suspension mechanism.

European Investment Bank to Allocate 450 million EUR to Georgia The mentioned projects call for allocating financial resources from EIB for developing road infrastructure, agriculture sector and agro industry in Georgia.

ECONOMY

Georgia will receive €735m for 10-year energy development plan International financial institutions will help Georgia modernise the transmission grid system by offering €735 million to the country.

In January-September Georgia’s FDI Increased by 5% Foreign direct investment (FDI) amounted to $ 463 million in the third quarter of 2016 which is 4 percent less than in the same quarter of 2015.

BANKING

5% of the Population of Georgia may Lose Property The number of debtors is constantly growing - at the beginning of 2016 the number of entries in the register was 143 517 and in the past 10 years this figure rose to 40 000.

December 12, 2016 #173

Moody’s praises Georgia’s plan to ease loan obligations for citizens

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lobal rating agency Moody’s is praising Georgia’s plan to ease the loan obligations for citizens who have bank loans in United States (US) dollar by offering them to convert their dollar-dominated mortgage loans into the Georgian Lari (GEL).

Georgia’s plan to convert dollardenominated mortgage loans into the local currency is credit positive for banks,” said Moody’s in its latest report published yesterday.

The Government of Georgia, together with the National Bank of Georgia (NBG), took steps to halt the devaluation of the GEL against the greenback and to boost the country’s economy.

To note, historically the Georgian Lari reached an all-time high of 2.58 earlier this month and a record low of 1.23 in December 1995.

The Government’s effort meant Georgian citizens who took a loan in US dollar before January 1, 2015 could convert their loan into Lari.

Loan conversion is voluntary and will start from January 1, 2017 and mature in two months’ time.

Furthermore, from January 1, 2017 banks will be obliged to issue loans worth up to 100,000 GEL only in the national currency, while from

2018 the change would expand to loans up to 200,000 GEL. The purpose of this program was to ease increased debt services burden, caused by exchange rate fluctuations. According to existing estimates, loans issued before January 1, 2015 were affected the most.

The program will not cover loans that were issued after the significant exchange rate changes, said NBG. These and other steps made by the Government of Georgia were praised by Moody’s rating agency, which said the ‘Program of Conversion of Loans’ did not envisage expenses by the banks as the 0.2 GEL difference would be covered by the Government.

The program will refer to up to five percent of cases, reported Moody’s.

The banks in Georgia are facing increasing credit risk as the exchange rate fluctuation influences negatively on the consumers capacity to pay loans. Up to two thirds of the credits in Georgia are denominated in a foreign currency (mainly USD),” said Moody’s.

Up to 40 percent of loans in Georgia were given to consumers in US dollar, despite them not having their income in the same currency, said the ratings agency report.

How much did banks lend in Georgia?

Commercial banks in Georgia lent 16.9 billion GEL in October 2016, which was 447.4 million GEL or 2.7 percent more compared to September 2016, showed latest data by NBG. Month-on-month figures showed loans taken out in the Georgian national currency increased by 110 million GEL (1.8 percent) while the sum of loans in foreign currencies decreased by 337.4 million GEL (3.2 percent).

The Government of Georgia also admitted a high dolarisation rate in the loan portfolio was the most acute problem currently facing people in Georgia. A high dolarisation was when the percentage of loans in US dollar in the total volume of foreign currency denominated loans was high, and the main reason for dollarisation was because of greater stability in the value of the foreign currency over the domestic currency.

Taking into account this challenge, the Government started working on a Joint Action Plan to stimulate a de-dollarisation process in the country.

The MP Protects the Banks Georgian Prime Minister George Kvirikashvili protects banks and regards, that unproven claims are announced against banking sector in the resent period.

BUSINESS

Georgia’s Wine Export up 40 % in 11 Months In January-November 2016, a total of 45 628 bottles of wine have been exported to the world’s 53 countries from Georgia that is 40% more than in the previous year.

New business centre opens for 70 leading Georgian companies Seven years after its establishment, the Business Association of Georgia now finally enjoyed a European-standard business centre equipped with modern furnishings.

COMPANY

GWP Placed Bonds of 30 mln with “Galt & Taggart” and “Pasha Bank” Agents for placement of GWP bonds are “Galt & Taggart” and “Pasha Bank”. The maturity term of the bonds amounts to 5 years, annual yield is 3.5% added to the refinancing rate of NBG.

9th International LED Forum Took Place in Tbilisi on December 7-8

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he Biltmore Hotel Tbilisi hosted 9th International Forum of Local Economic Development (LED). The workshop was opened on 7th of December and was closed on December 8. The event has been organized by Tbilisi City Hall.

The Forum was called: “Modern Approaches for Urban Development”. The format unites 12 thematic sessions: Reasonable Cities, Green Cities, Drawing Funds, Electronic Management, Energy Efficiency, Investments, International Relations, Public Transport, Tourism, Eastern Partnership, Infrastructure, Art Industries.

There were French and Italian Mayors participating in the forum.

The event has been hosted since 2007 by Tbilisi City hall. During this time, it has become a unique platform in sense of discussing municipal development issues.

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 3 Director: Levan Beglarishvili; Mob: +995 591 013936 Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

The forum participants focused on modern concepts of urban development and international experts discussed topics such as transport, ecologically clean environment and so on.

The participants of the forum had an opportunity to share their ideas and experiences with each other.

Tbilisi-loves-you Representatives of local governments, NGOs and business sector attend the forum from Caucasian region, Europe, Asia and American continents.

Deputy Minister of Economy Ketevan Bochorishvili told reporters that many international experts are attending the local self-government economic development forum to share experience with each other.

“We are trying to jointly determine problem solution ways. Experts share their recommendations. We are also establishing new contacts

for future cooperation”, Bochorishvili noted.

At the forum special accent was made on innovative directions for local economic development, electronic management in local self-government system, tourism development promotion and the instruments of local self-governments. ’’This important forum is attended by representatives of local selfgovernments and foreign guests and they are able to communicate in a dialogue format and exchange information on self-governance novelties”-Tbilisi Mayor David Narmania told reporters.

The sponsors of the forum were: Company Sarajishvili and Master Card. Media sponsors: Forbes Georgia, IPN, BPN, Caucasus Business Week, Georgia Today, Where.ge, banks and finances and program “Business morning”.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Medea Samkharadze; Mariam Kopaliani; Merab Janiashvili Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze

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

December 12, 2016 #173

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PN (Global Professional Network) has recently emerged on the Georgian market with an aim of providing intellectual services to Georgian and foreign clients based on a fundamentally novel concept.

Namely, based on the specific demands and interests of a potential customer, the company will offer tailored-made services of a qualified expert (or group of experts) registered in its database. Respective approach provides a unique opportunity for the clients to obtain higher-quality personalized services provided by the specialists operating in their specific fields of interest. Thus the customers will be able to utilize knowledge and experience of the experts to solve existing business tasks.

GPN has set up a network of more than 200 experts in different fields that are already employed in various companies and organizations and are acclaimed as the top professionals in their respective areas. The portfolio of the company includes a large variety of the consulting services as well as various forms of project management, including in Legal, Financial, IT, Human Resource and Marketing related areas.

An innovative concept of consulting services that offers a unique network of top experts in various fields, represents a completely novel approach on the Georgian market. Respective strategy enables provision of the high-quality services based on the comfortable one-stop-shop principle. www.gpn.ge

PUBLICITY

AN INNOVATIVE CONCEPT OF AN INTELLECTUAL HUB ON THE GEORGIAN MARKET

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ECONO-MIX

December 12, 2016 #173

Government and National Bank Take Joint Efforts against Dollarization Paata Bairakhtari AYFB Analyst

Merab Janiashvili Economic Analyst

Finally, it should be noted that the Authorities are trying to hide a considerable growth in taxes through populism steps. On the one hand, the Authorities announced prohibition of online loans, which is impossible to implement, in practice, but grows taxes, on the other hand

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overnment of Georgia has recently introduced a 10-clause plan and dedollarization policy is one of the key directions. Both government and National Bank of Georgia (NBG) declare that dollarization level is very high in the country. According to October 2016 indicators, deposits dollarization indicator in October rose by 0.5% and made up 69.7%. Because of high dollarization, the national currency devaluation has badly affected Georgian citizens, because a major part of borrowers have taken USD-denominated loans, while they receive wages in GEL. According to the Government plan, in January-February 2017, USD-denominated mortgage loans issued before January 1, 2015, will be converted due to the then exchange rate minus 20 points, of which 20 Tetri will be subsidized from the state budget. At the same time, starting January 1, 2017 loans of about 100 000 GEL will be issued only in GEL, while the top margin will rise to 200 000 starting 2018. Furthermore, price of any product or service must be published in GEL starting 2018.

A major part of economists backs the government’s initiative for reducing dollarization level, however, the same majority does not agree to implement the process under strict regulations. On the one hand, it is very good that the Authorities are trying to resolve this problem, but another issue is how it will manage to attain this goal without damaging the economy.

In relation to the Government’s dedollarization plans, subsidization issue should be outlined first of all. It is unjust and populist decision to subsidize every 20 Tetri in 100 000 Gel loans for 33 000 clients. Moreover, prohibition of issuing loans of about 100 000 GEL in USD will make credits more expensive. This tendency will shrink crediting volume and decelerate economic growth paces. Today interest rates on USD-denominated loans is lower than on GEL-denominated loans, because commercial banks are able to draw foreign currency from cheap source, while GEL are received from only domestic market and NBG. Since Georgian citizens prefer to make savings in foreign currency, it is difficult to draw GEL-denominated long-term financial resources. Therefore, if commercial banks are banned to issue USD-denominated loans of about 200 000 GEL, drawing GEL resources in exchange will be much more expensive and these resources will be lent at expensive rates. The NBG president has responded to objectors of dedollarization policy on his own Facebook page. Koba Gvenetadze referred to research

by International Monetary Fund (IMF) that proves that exchange rate flexibility is a key precondition for quick dedollarization of loans.

“In the research process we explored experience of 33 developing countries in 1997-2015. Moreover, under the research, the more flexible the exchange rate, the faster dedollarization process proceeds. The authors refer to the sample of Peru, where dedollarization process was accelerated at high paces after 2014, when the exchange rate flexibility increased in the country and adequate macroprudential measures were introduced. Currently dollarization level in Peru makes up only 29%”, Koba Gvenetadze said.

At the end of 1980s and at the beginning of 1990s, hyperinflation was recorded in Peru. As a result, dollarization indicator rose to 90%. After that Peru

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ssociation of Young Financiers and Businessmen (AYFB) talks about expected hazards that may arise as a result of growth in tobacco products excise tax in the announced volume.

«It is unclear when the Authorities refer to public health issues when discussing tobacco excise tax growth aspects. Everybody understands that it was inevitable to increase excise tax on tobacco and other products amid the 2017 state budget deficit. Therefore, a genuine reason for raising excise tax is to balance budget deficit.

Moreover, the world practice shows that growth in tobacco excise tax cannot bring direct affect for reducing the smoking level in the country. On the contrary, higher excise tax makes smokers smoke low-quality tobacco. The same global experience suggests that educational and information campaigns work much better for popularizing healthy lifestyle and for reducing smoking level.

As to fiscal aspects of growth in tobacco excise tax, the state budget may record more losses than benefits, because excise tax growth in this volume enlarges risks of inflow of smuggled tobacco, even more so, in the neighboring countries the price of a pack of cigarettes is about 1 GEL lower compared to the price of the same product in Georgia after excise tax growth.

The Government expects to reduce smoking level by 10% as a result of upturn in tobacco excise tax. Currently, there is no statistics on smokers in Georgia and the tobacco imports volume is an only mechanism to determine whether the smoking level grows or declines in Georgia.

The very tobacco imports enables us today to define whether smoking level has declined or increased year to year. Consequently, if smuggled cigarettes penetrate the market, smoking level may decline not by 10%, but on the contrary, increase because of illegal tobacco products. This scenario will damage the business sector, on the one hand, and bring negative fiscal effect, on the other hand. The country had similar experience in 2005, when the ratio of smuggled products made up 50% and legal market and business sector turned out on the verge of destruction.

Taking into account the above-mentioned risks, AYFB suggests that it is not reasonable to increase tobacco products excise tax in this volume. Prior to introduction of similar regulations, tight and pubic communication is required with market players and similar solutions must be announced and implemented after close consultation with them.

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AYFB about Expected Hazards after Growth in Tobacco Excise Tax

Prohibition of Issuing USD denominated loans will Make Credits more Expensive started serious macroeconomic reforms. New budget law enabled to maintain deficit and loans at low level.

At the same time, inflation targeting regime that was introduced in 2002 strengthened trust towards the domestic currency. As a result, inflation indicator is 2¾ percent on average since 2002 and this is one of the lowest indicators in Latin America. At the same time, Peru Government has carried out additional measures and introduced stricter requirements for issuing currency credits and at the same time, offered repo operations to commercial banks and enabled them to issue credits in national currency.

It should be noted that the policy of dedollarization or so-called Larization was announced by National Bank as a priority direction in 2010. Starting 2010 deposits dollarization was declining at low rates. For example, in 2010 deposits dollarization was 79%, while in June 2016 deposits dollarization made up 65%.

As to dollarization coefficient in total loans, the indicator was 73.7% in 2010, while in June 2016 the ratio in USD-denominated loans marked 67%. It is worth noting before 2014 dollarization ratio was declining.

At the same time, at the beginning of 2016, when GEL started quick depreciation, in first four months the dollarization level rose to 70% and then started declining again.

Dollarization indicator was declining at comparatively faster rates in individual loans – in 2010 dollarization coefficient was about 72%, while in June 2016 this indicator declined to about 56%.

One indirect instrument has been already activated for dollarization reduction. Namely, under the NBG decision, starting June 16 minimum reserve requirement norm made up 7% (instead of 10%) on GELdenominated resources with about 1-year maturity period. In case of foreign currency denominated resources, the reserve norm rose to 20% from 15%. At the same time, obligatory reserve norms on foreign currency denominated resources with 1 to 2 year maturity period rose to 10% from 5%.

It is interesting that in 2003-2004 obligatory reserve norm on both GEL and USD denominated resources was equal almost and ranged from 13% to 14%. In the following years, the reservation norm in GEL declined, but the norm remained at 13% on USD-denominated resources. In 2007-2008 reserve norms changed several times, but reservation norms in GEL and USD was equal. Starting 2010 NBG increased reserve norms to 10% from 5% and later to 15%. And starting June 16 commercial banks have to reserve attracted resources by 20%. The fact is that dedollarization remains one of the key challenges of our economy and it requires long-term process. International experience suggests that many countries have overcome dollarization problems thanks to correct policy in 10-15 years.

Therefore it is useless to expect quick breakthrough in this direction in Georgia. One thing is evident: prohibition of issuing USD-denominated loans in about 100-200 thousand GEL will reduce crediting volume and increase interest rates on loans and this trend will decelerate economic growth.

We also remind you that in January to October 2016 Georgian economic growth made up 2.6%, while the 2017 budget plans 4% GDP upturn. To put simply, low economic growth was recorded over the past years and further deceleration will bring nothing good.

“There are big difficulties in Turkish economy which makes an influence on us as well.

There is another point that state expenses should be decreased for even short time.

Therefore, I should admit that GEL exchange rate is not only defined by the situation in the country”

Temur Chkonia Businessman

December 12, 2016 #173

EU MARKET

Georgian Honey with No Perspective on European Market Georgian Honey has been admitted to EU market after EU completed all formal procedures and included Georgia in the list of third countries, from where honey imports are admitted to EU space. Ministry of Agriculture of Georgia has carried out important measures for developing beekeeping field and stimulating exports of Georgian honey to EU market, Minister of Agriculture Levan Davitashvili said.

MEDEA SAMKHARADZE

components. Moreover, we send samples to foreign laboratories too”, National Food Agency officials noted.

Honey manufacturing companies also talk about Georgian honey problems and difficulties with exports to foreign markets.

LLC Machakhela Tamaz Kakhidze, founder of Machakhela Datunia company, noted that the company cannot launch honey exports because of absence of laboratory. Moreover, Georgian honey cannot offer price competition on EU market. Consequently, Georgian honey cannot be exported to EU market in the near future.

«How can we export honey to Europe, where the price of honey is 3 EUR, while in Georgia the price is 10 EUR?», Kakhidze asked.

Datunia founder hopes that the EU-recognized laboratory will launch operation in Georgia in the near future and Georgian honey will enter EU market anyway.

Machakhela company launched Machakhela Datunia production in 2011.

5 honey of such high quality would be manufactured. There is no similar climate and nature elsewhere like ours, while this factor is one of the key components that determines honey quality”, Tatishvili said.

Serious AD campaign is required for advertising honey and to export products to international markets and this is the government’s responsibility, Tatishvili added.

Keskia company Keskia company founder Dali Markhulia noted that there are several key problems before honey production companies in Georgia. Namely, EU standards are not satisfied. There is no corresponding laboratory in the country that would issue a quality certificate. “All these factors make Georgian honey price more expensive and therefore, our product cannot offer price competition on global markets”, Markhulia said.

According to official statistics, in 2011 Georgia exported 60.8 thousand USD honey, in 2012 – 29.2 thousand USD, in 2013 – 116.7 thousand USD, 2014 – 54.2 thousand USD, 2015 – 73.1 thousand USD.

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ccording to EU requirements, we have prepared legislative amendments for harmonizing with EU legislation. Namely, we have approved a plan for monitoring veterinary medications, other pollutants and wastes.

Starting July 1, 2015 Technical Regulations on Honey were enacted that determine honey standards», Levan Davitashvili noted.

Business operator is obliged to produce honey under standards of the mentioned technical regulations and introduce the product into the market under the determined requirements. Consequently, honey producers are able to export products to European market if they meet the due standards.

The Caucasus Business Week (CBW) has inquired specialists about perspectives of Georgian honey on EU market and whether Georgian manufacturers plan to launch exports.

Georgian specialists assert that it is very important to enter EU market for developing Georgian beekeeping and output growth, but Georgian product must meet several criteria to get onto EU and other markets.

Namely: required order must be kept in hives, production line must be protected in due manner starting from manufacturer ending with laboratory and consumer; Beekeeping laboratory meeting international standards must function in the country that will be accredited in Europe and that will issue respective certificates; Certificates of current laboratories suffice for the domestic market and these certificates do not work on EU market, specialists said.

Georgia-made products are not ready for exports to EU market, because these products have not passed certification of origin, laboratory tests that are determined by European market, they added.

Union of Beekeeper Farmers Georgia has no potential to launch honey exports, Giorgi Kepashvili, president of Union of Beekeeper Farmers of Georgia noted. EU has completed all formal procedures and included Georgia in the list of third countries, from where honey imports are admitted to EU territory. However, this does not signify anybody is authorized to export honey to EU market, Kepashvili said.

The Government has taken a good step, but there are certain problems in the country that should have been tackled so far. Namely, primary product control is not carried out and there is no laboratory that would examine honey quality, Kepashvili said.

“Riga-based laboratory results suggest that we were to improve and the Government was to control flow of preparations that are used in beekeeping. This problem remains.

The issue is of a group of antibiotics that is used for healing bees. Even a small trace of the mentioned preparation in honey is harmful for human health. We need laboratories that will explore honey samples, make qualified conclusions for issuing certificates recognized in EU. The Government’s action plan reads that the laboratory must unite all methods that ensure high-quality examination of honey. Unqualified specialists are the main reasons for misfunction of the laboratory”, Kepashvili said.

Inappropriate flow of preparations is also a problem, he added.

Price of Georgian honey is uncompetitive on international market. Namely, today international price is 1.35 EUR, while in Georgia the price is about 10-15 EUR. Moreover, if Georgia enters the EU market, the country must introduce branded honey. There must be organizations in the country that will process and pack honey under the EU standards, Kepashvili pointed out.

National Food Agency In response to the question, why the laboratory cannot examine honey under standards, National Food Agency noted that the Agriculture Ministry laboratory works in honey direction and makes analytical conclusions too. “We cannot examine all analysis, but we are working to introduce all

Fefe Company Giorgi Tatishvili, founder of Fefe honey company, noted that the company cannot launch exports because of absence of corresponding laboratory. Thanks to personal contacts, Korean businessmen are interested in the company product, but the same problem with due laboratory frustrates exports, he said.

Company should produce a huge volume of honey to make exports profitable, Tatishvili said. This field remains abandoned in the country and there are no corresponding laboratories that would issue honey quality certificates. Consequently, companies have to obtain these certificates in other countries, including in Riga and these efforts require huge funds, Tatishvili noted.

“All these factors grows prime cost of Georgian honey and therefore, problems arise with price competition on exports markets”, Tatishvili noted. The Government should ensure Georgian honey advertising campaigns on global markets. A joint brand should be arranged, under which Georgian honey will be exported to global markets, he said.

Tatishvili also made focus on advantages of Georgian honey. It is incorrect to assert that Georgian honey is more expensive compared to honey of other origins. Georgian honey is expensive, but the product is of top quality, Tatishvili said.

“There is no other place on the globe, where

Georgian specialists assert that it is very important to enter EU market for developing Georgian beekeeping and output growth, but Georgian product must meet several criteria to get onto EU and other markets

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BC Bank will support of winter resorts Development Company in the frame of 5 years partnership. The partnership aims creating innovative systems of payment and development of infrastructure on the winter resorts. With the support of TBC, payment systems will get better at all the resorts and new cards will be available(Multi Card) which will enable people who use cable cars to book the tickets from the distance with Internet bank, card or pay box.

TBC bank will invest few hundred USD in the project. Besides, in the frame of 5 years partnership, TBC will promote improving the services and infrastructure, which means offering flexible services to customers.

This year, there have been 9 new cable cars constructed on winter resorts and 3 of them were built in Gudauri. The season in Gudauri, Bakuriani and Goderdzi resorts will be opened on 10th of December. It will be opened in Tetnuldi on 24th of December and on 25th of December in Bakuriani-Mitarbi.

BANKING

December 12, 2016 #173

TBC Bank to Invest few Hundred USD for Winter Resorts Development

Liberty Bank Offers Clients to Specify Installment Loan Limits in Advance

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iberty Bank has introduced a new service to enable clients to faster and more comfortably use installment loan products. Tight schedule and queues at stores will not hinder clients to waste extra time with installment loan managers. Liberty Bank has placed Installment loan

stands at about 100 partner stores and clients are able to receive information on an approved limit of installment loan in 10 seconds and buy desirable things and products without problems. To this end, clients should insert personal information on the display of installment loan stand and the client will receive information in 10 seconds.

At the same time, approved limit are applicable for New Year discounted products too.

Moreover, clients are able to

receive information on approved limit without visiting a store. To this end, clients are able to insert personal information on website: http://www.oneloan.ge/ganvadeba/ . Clients are able to use the approved limit at any partner store of Liberty Bank.

Currently, Liberty Bank installment loan products are available at more than 2500 trade outlets. If a Liberty Bank installment loan manager does not work in the mentioned outlets, the loan is available at any

service center of Liberty Bank, based on invoice from trade outlets.

«Any clienty is able to check installment loan limit if they cannot visit the bank representatives at stores or service centers because of tight schedule. They are able to learn in advance what amount of installment loan they can use. Liberty Bank cares for developing alternative channels on permanent basis», Levan Asanishvili,Liberty Bank external sales department head, noted.

Sustainable Energy Development in Georgia – the Second MEETING ROOM Conference by PASHA Bank

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n December 6th in Radisson Hotel PASHA Bank hosted its second business conference under the auspices of MEETING ROOM with the topic being “Sustainable Energy Development in Georgia-Case for Hydro Power Plants.”

The conference was supported by the Ministry of Energy of Georgia, Electricity System Commercial Operator and Georgian National Energy and Water Regulatory Commission.

The MEETING ROOM brought together a diverse group of players from public and private sectors to discuss major issues concerning sustainable energy development in the country where majority of the electricity consumed is generated

by Hydro Power Plants. The MEETING ROOM covered, among others, the following topics: energy policy, tariff setting, power purchase agreements, various country-specific challenges for greenfield hydro project development, available financing schemes and key requirements for financing HPPs.

The presentations were delivered by following speakers: - Mariam Valishvili - Deputy Minister, Ministry of Energy of Georgia - Keti Sandroshvili - Head of International Relations & Investments Department at Electricity System Commercial Operator (ESCO) - Giorgi Pangani - Commissioner, Georgian National Energy and Water Regulatory Commission - Goga Japaridze - CCO, Member of the Board of Directors at PASHA Bank - Radoslav Dudolenski - Chief Executive, Hydrolea - Giorgi Abramishvili - Managing

Partner, Energy Solutions - Ronny Solberg - CEO, Adjaristsqali Georgia LLC The meeting will be moderated by Keti Sandroshvili, Head of International Relations & Investments Department at Electricity System Commercial Operator (ESCO).

“On December 6th we gathered again in a MEETING ROOM this time to discuss the major issues concerning sustainable energy development in Georgia with the main focus on hydro power plant development and financing. Since 2013 we have been engaging with a wide range of sectors in Geor-

gia with energy being one of our primary areas of interest. We hope that this conference was informative for current and prospective investors in energy field specifically those planning on investing in the development of HPPs. Positive feedback after our first MEETING ROOM event back in May inspired us to follow through with the cycle of the conferences with two more planned for the 2017,“– said Goga Japaridze, CCO, Member of the Board of Directors at PASHA Bank.

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

The first business conference of MEETING ROOM was dedicated to the Hotel Development and took place in May of this year. The supporters of the conference were Georgian Tourism Administration and Colliers International.

Trouble-free 100 Days

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rouble-free 100 days – or how to relax from loan interest rates, when I need money urgently?! Only Terabank provides a valuable answer to this question, at this stage.

To finance the New Year preparations, travel and general expenditures, the Bank offers a New Year gift to consumers. During 100 days after taking the loan, Terabank clients will pay no interest rate on the loan. The 0% interest rate signifies that borrowers are exempted from any payments during the initial 100 days. And during the next 100 days, borrowers will pay only interest rate on principal sum as part of the grace period.

The loan maturity period, limit and interest rates are as follows: Interest rate on unsecured loan in GEL is 13.5% (effective interest rate starts from 14.3%), in USD - 9.5% (effective – 10.4%).

At the same time, interest rate on secured loans in GEL are available from 13% (effective - from 13.89%), in USD – from 9% (effective from 9.6%); Borrowers are able to take secured loans with 120 month maturity period and unsecured loans by 48 month maturity period. Top margin amount of unsecured loan is 45 000 GEL (equivalent in USD).

Consequetnly, you are welcome to visit Terabank finance house before New Year and join Trouble-free 100 Day campaign to finance your New Year or spring plans.

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EVENT

December 12, 2016 #173

“The future is digital, and it is very important for us to enable our customers to be a part of it. We believe that consumers should have access to hi-speed mobile communications and that new digital services should be available to everyone”

Beeline transforms to enable new digital services in Georgia

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eeline, part of the telecommunications and technology company VimpelCom, today presented to the media an update on its transformation into a digital services provider, in line with the overall transformation of the VimpelCom Group. Beeline aims to become the first fully digital service provider in Georgia, and to offer its customers innovative services tailored to their needs.

“The future is digital, and it is very important for us to enable our customers to be a part of it. We believe that consumers should have access to hi-speed mobile communications and that new digital services should be available to everyone. That is why we need to change and become a digital company. Our strategy is to focus on the optimization of our business as well as increasing our investments in the development of mobile apps and services, which will be even more useful for our customers and for the widespread adoption of a new digital culture in Georgia” –said Giorgi Tkeshelashvili, Chief Executive Officer of Beeline.

Beeline’s digital transformation encompasses the development of lean technological infrastructure and streamlined processes, turning the company into a flexible, agile organization and a true digital player. This process is fully in line with the strategy by Beeline’s parent company, VimpelCom, an international communications and technology group headquartered in Amsterdam.

“This technological breakthrough is very important for the VimpelCom Group. Georgia is an important pioneering market for us and Beeline is the first operator in our Group to adapt this new technology that will enable us to offer real-time, digital-oriented mobile services, which make it easier for customers to navigate the digital world. We look forward to bringing the digital world closer to Beeline subscribers in the months ahead,” said Yogesh Malik, Chief Technology Officer of VimpelCom. The first large-scale project of

Beeline’s IT transformation involves the implementation of a new IT infrastructure that will allow Beeline to bring innovative digital services to its customers faster and more efficiently. Ericsson, the international equipment and technology solutions provider, will partner with Beeline to develop the new IT infrastructure. VimpelCom announced the global

Welcome to Georgia!

National Tourism Awards Second Official Ceremony

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partnership with Ericsson in June 2016. The partnership with Ericsson includes the comprehensive update of the VimpelCom’s IT infrastructure in one of the largest and most ambitious project of its kind in Georgia’s communications and IT history. The full digital IT technology is expected to be launched in Georgia in 2017 and will accelerate product and services development, while a simplified data processing mechanism will allow the company to develop personalized services for customers. Beeline also plans to launch 3G technology which will cover the whole territory of Georgia.

On 20 October, Beeline applied to the Regulatory Commission to participate in the auction of a spectrum license in the 2100 MHz frequency range. Rollout speed will be a priority in the project as the demand for digital services rapidly increases among Georgia’s mobile customers.

3G coverage is expected to be available from the second quarter of 2017.

“Our investment ensures the minimization of capital outflow from the country and stimulation the employment in a local market; of course it also means empowering our customers by offering them benefits brought by 3G technology,” added Mr. Giorgi Tkeshelashvili, CEO of Beeline.

n December 2, at the “The Biltmore Hotel Tbilisi” was held Welcome to Georgia!

National Tourism Awards Second Official Ceremony, where 19 winners from 19 different categories were revealed: 1. BEST BUSINESS EVENT VENUE AWARD - Holiday Inn Tbilisi 2. BEST MICE TOURISM AWARD BTL Georgia 3. BEST TOURISM RESTAURANTS SERVICES AWARD - Restaurant “Georgian House” 4. BEST TOURISM WINERY AWARD - Winery Khareba 5. BEST BOUTIQUE ACCOMMODATION AWARD - Vinotel 6. BEST STANDARD ACCOMMODATION AWARD - Courtyard by Marriott Tbilisi 7. BEST DELUXE ACCOMMODATION AWARD - Crowne Plaza Borjomi 8. BEST WELLNESS & SPA RESORT AWARD - Lopota Lake Resort & Spa 9. BEST MOUNTAIN ACCOMMODATION AWARD - Rooms Hotel Kazbegi 10. BEST SEA ACCOMMODATION LOCATED IN THE CITY - Divan Suites Batumi 11. BEST SEA ACCOMMODATION LOCATED ON THE COAST - Hilton Batumi 12. BEST LOW BUDGET ACCOMMODATION AWARD - Dvizh Hostel Eli Spali 13. BEST TOURISM INNOVATION OF THE YEAR AWARD - Check in Georgia

14. BEST FESTIVAL OR EVENT AWARD - GEM Fest 15. BEST INCOMING TOUR OPERATOR AWARD - CAPITAL GEORGIA TRAVEL 16. BEST OUTBOUND TOUR OPERATOR AWARD- Easy Travel Agency 17. BEST ADVENTURE TOURISM AWARD - rafting.ge 18. BEST TRAVEL PHOTOGRAPHER OF THE YEAR - Shermazana 19. THE FASTEST GROWING COMPANY OF THE YEAR IN THE SME SEGMENT - Continent Cron Palace Tbilisi First Deputy Prime Minister and Minister of Finance of Georgia – DimitryKumsishvili; Deputy Minister of Economy and Sustainable Development of Georgia – Ketevan Bochorishvili; Tbilisi Mayor – Davit Narmania; Deputy Mayor of Tbilisi – Irakli Lekvinadze; Head of Georgian National Tourism Administration – Giorgi Chogovadze; and more than 500 guest from tourism and hospitality industry, government officials, private business, mass media and press industry _ attended.

Award Ceremony was opened by the First Deputy Prime DimitryKumsishvili, he spoke about importance of the project for Georgian tourism industry, how important it is to encourage companies operating in this field and handed Special Award for “AWARD FOR CONTRIBUTION TO TOURISM DEVELOPMENT” to Mariam Kvrivishvili.

At the Ceremony, Tbilisi Mayor Davit Narmania handed special diploma for the contribution in developing

Georgian tourism industry to “Radio Holding Fortuna”.

Deputy Minister of Economy and Sustainable Development of Georgia Ketevan Bochorishvili, one of the jury members spoke about the evaluation methods and handed special award “OPENING OF THE YEAR AWARD” to “The Biltmore Hotel Tbilisi” Project’s co-organizer, head of Georgian National Tourism Administration Giorgi Chogovadze, handed special diploma for contribution in the development of tourism industry between Ukraine and Georgia to Ukrainian Magazine “International Tourism Magazine” At the end of the Award Ceremony the CEO/ Co-Founder of the Welcome to Georgia! Awards Project Maryna Chayka addressed guest in Georgian and noted that “as she promised last year she started studying Georgian, which is a big challenge for her. Also, she mentioned that combination of international standards with deeprooted hospitality, culture and history of Georgia, will give us something unique, that will help Georgian Tourism and Hospitality Industry for further development.”

More than 300 Nominees from the Georgian tourism and hospitality industry form all regions participated in the project: hotels; Travel agencies and tour operators; Festivals and events; Restaurants, food spots and wineries; Travel photographer; Business and entertainment venue; The process of assessment was divided in two parts: the first part of the assessment was – ONLINE VOTING on the projects official website; The second part of the assessment – by the professional Jury Board. Members of Jury Board consisted experts of the world and local travel, culture and hospitality market.All assessment processes for each nominee were calculated by the Awards Independent Auditor “BDO Georgia” and they determined the finalists and the winners in each nomination.

The main mission of the Welcome to Georgia! National Tourism Awards is to encourage tourism and hospitality industry in Georgia and also to promote the awareness of the high-achieving tourism business and brands that create a positive image of the country worldwide.

8

PR

December 12, 2016 #173

Caucasus Business Week offers you an interview with MZIA SHARASHIDZE, PR Manager of Tbilisi Zoo, where she talks about her first job, career path and names important features and aspects that successful public relation manager and should have.

“I believe that those, who want to learn something by heart, will reach success everytime and everywhere, even more so modern technologies simplify process of search of required information”

This PR manager says you should have Ability of standing up, when you think everything is over - What are you by profession?

- I am a graphic designer and this is my primary profession. I have graduated from Academy of Arts, faculty of graphic design. For a certain period I used to work by my profession, but later I started working for radio and TV stations and suspended art direction temporarily.

I picked up PR profession after several years, when I was studying communications management at GIPA. Later I passed trainings: art of sales, social media, organizing of events, efficient communication and presentation, service of consumers, negotiations and problems management. Finally, I shaped a good bouquet of knowledge, experience and skills and this factor considerably assists me in current activities. My primary profession of graphicdesigner has also turned out also very useful, because I have tight communication with designers and vision of a graphic designer considerably alleviates my communication with them.

- Your first job place.

- I used to earn money starting from school years, when I used to make handmade things (bags, beads) and sell them. The first job place, where I officially took wage was First radio station (106.4 FM). I was 18 then and a radio presenter was a glorious and honorary profession in that period (especially at 106.4 FM radio station).

And one day, without hesitation, I went to radio station and offered my candidacy for the position of a musical program presenter. I passed certain tests to determine how well I knew musical world and finally, they hired me.

I have worked at radio for 10 years. At the same time, television programs also appeared in my life. I became a TV presenter and have led programs at various leading channels for about 15 years.

I was aspiring for everything new and innovations and finally, I sank in the world of PR and I remain in this field till today.

- Current position and job.

- Currently, I work as PR manager for Tbilisi Zoo. - Your first success.

- If we talk about PR field specifically, the first success came after graduation from GIPA, when the first company, where I had submitted my resume, employed me. People face difficulties to find job and they think it is useless to send resumes and it is impossible to attain goal without friends and relatives. However, everything happened in different way in my case, without protectionism.

Certainly, this was my first success, the step that gave me a new job, chance of professional growth, development and self-fulfillment in the new field.

In general, we can call all new jobs, all new businesses to be a success, because despite the job is bad or good, experience and gained knowledge never disappears. And new friends and co-workers, who pass the new way jointly with you, also remain with you.

- Project that you are proud of even today.

- Naturally, during 10-year career in PR field, there would be many projects for taking pride in any good specialist would name a long list of successful projects in response

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I would name an ability of positive thought, besides a standard package of skills – the ability to see good in everything and everywhere. It is impossible to persuade people to like and love what you do not love and believe in

to this question. I can do the same, but I will not name specific projects.

The most difficult job of PR specialist is to change human values and to ruin established stereotypes, shape different opinion, penetrate a human reason and grasp the most important emotions from the secrete corners of human’s heart.

I find similar projects glorious. For example, I am happy when someone reminds me of Elephant Grant operation and I frequently talk about this project as an invited speaker, because it is one of the best samples of well-planned PR campaign. What was important in this project? People who were not previously interested in animals, became the elephant fans. On that day, a great number of people were waiting for elephant at Zoo entrance. They were offering assistance without seeking any benefit. They were bringing food, children did not go sleep without information that the elephant would survive.

And what else? I am happiest person, when people say they know Zoo and they tell Zoo stories to children at night.

During the flood these people showed huge support and sympathy to our animals. Our white lion Shumba was the best sample. Everybody was particularly sorrowful because of his death, because everybody knew Shumba. He was friend and familiar to everybody. People had special attitude to this lion and therefore, his death was especially regretful.

- The field where you would never work.

- For example, it is unimaginable for me to take efforts in politics, but I would be banal and say Never say Never.

- What makes a person successful in your field? Besides knowledge, what special features are required?

-I would name an ability of positive thought, besides a standard package of skills – the ability to see good in everything and everywhere. It is impossible to persuade people to like and love what you do not love and believe in.

- Is it possible today in Georgia to study PR well or international knowledge and experience is necessary?

- I believe that those, who want to learn something by heart, will reach success everytime and everywhere, even more modern technologies simplify process of search of required information. However, international knowledge and experience broadens scope, helps you get rid of bewitched circle, new ideas and new methods for problem solution arise, various creative channels open, enthusiasm grows.

Even short-term training abroad suffice to perceive the domestic everyday life in different light and return to usual environment with fresh ideas.

- Is PR perceived and understood in Georgia in its classical nature?

- Regretfully, I frequently meet situations when PR specialists are considered as grigs from fables, who jump and creaking, while ants work to create winter reserves. Many individuals cannot realize that, like ants, PR specialists also perform hard job.

- How easily do you manage to settle crisis situations and take decisions? Does similar cases affect the working process quality?

- As a rule, I am very self-mobilized in crisis situations,

more self-mobilized than in ordinary, quiet environment. Sometimes I think the inactive and idle part of brain gets activated and that’s why I manage to do business at high level in extraordinary regime. As to decision-making process, I always listen to field specialists and people, who knows more around this or that issue. Then, I think a lot and only after that I take a final decision.

- Interesting episode from your life (business) that has changed your life.

- I think the June 2015 flood was the most extraordinary and extreme period in my life, when Tbilisi Zoo was almost demolished entirely. Today I recall that period as a bad dream or thriller film. Several months of stress, sorrow, pain and tension, when I did not eat, did not sleep and was working in extremely nervous environment in continuous regime. What has this period changed in my life? Regretfully I found out that people can commit injustice. However, fortunately, I also made sure there are more people who can fight against this injustice. I saw coward people, but I guessed that there are more people to rely on.

- Without this profession, which field would you take efforts in?

- I am an all-or-nothing person and perfectionist. Therefore, I am completely sure that I would be excellent doctor (especially surgeon or plastic surgeon) or goldsmith.

- What are strong aspects and features of you, as a businesswoman?

- Smile in difficult situations.

Joking about myself; Problem Resolution skills Keeping humor in most critical situations Ability to persuade others easily Solution of life problems thanks to practical decisions.

Making scrupulous order.

Ability of making several affairs simultaneously (as a rule males make concentration on one issue, while women are able to think, write, make phone calls, listen and watch Facebook page too).

Play with your child with 40-degree fever.

Ability of standing up, when you think everything is over.

-What benefits do you receive from your employer company? What makes this company interesting for you?

- I have recently read such a thing: «No human exists, who on the verge of death, would dream of time spent at office and job. People mianly regret that they did not spend much time and did not pay due attention to family, friends and favorite affairs». I am happy, because I do my favorite business. Mondays do not push me into depression and I do not hate going to office.

-What makes major discomfort in working process?

-unjust attitude -interference in my job -dispersion of concentrated attention.

-Where do you see yourself after 20 years?

-I do not have any idea, but I hope I will not be a boring, ever discontent, critically-tuned and sick old woman.

December 12, 2016 #173

INTERVIEW

9

THE NECESSITY TO ESTABLISH TOY SAFETY STANDARDS ON GEORGIAN MARKET Caucasus Business week is concerned with an issue which was spread in Georgian press about toy business problems and law violations. More specifically, after the expertise of toys from different toy network, it has been discovered that most of them contain dangerous substances which can be harmful for children. After the research, Caucasus Business Week conducted, it became clear that there are few large companies which pretend that their production is ecologically clean and high-quality and even more, they are actively advertising their products and try to be competitive at the market. According to our information, there is no legislation in Georgia, no law which would verify the quality of production. Therefore, the entrepreneur has an opportunity to sell low-quality products and lie to the customers. We think that this issue has to be considered and receive a necessary reaction, considering competition, advertisement and quality factors. We talked about this topic with Ms. Khatuna Lolashvili, who is the director of one of the largest importer in the wholesale and retail trade, toy network “Dadu” and a member of Business association “Women for the future”.

DAVID BAGHASHVILI

- Tell us about your business, why did you decide to start toy business and what does your company do nowadays?

- I started my business when I was 16. This is an age when you still play with toys. In my case, playing with toys has become a source of income. We are on the market 25 years already and retail trade is our main activity. A lot of toy network has been created in collaboration with us and it’s been only 18 months since we started wholesale too. Our team represents the store network “Dadu” and we own 4 stores in Tbilisi and there are many people employed in our network, creating cheerful future together.

We are the first company which started selling Georgian toys abroad. We are the author of police car toys and singer toys with Georgian titles and voices.

- Few days ago, the information was spread about the existence of dangerous and low quality products, which caused dissatisfaction. What is the current situation in this sense at the market?

- The situation is not the best, because there are no regulations, laboratory base and an obligation to control the products strictly. I took an interest in this topic and I had consultations with my foreign partners. I talked about it on Women Business forum and I had an interview with Georgian media. I am one of the people who are importers and also initiator to do something about the current situation but it exceeds the capabilities of my company. Nowadays, we are obliged to trust the standards producers offer us, because there are no laws and specified standards in

Firstly, the government must pass a law about controlling the local or imported toy production which suit EU standards and hold proper certificates. Secondly, the law must oblige companies to import only the production which suits the standards. Finally, it is important that the production will be checked on the border in the laboratory and its safety will be approved.

”

the constitution which controls the quality of the products.

- What do you think, how can a country provide import of a good quality production in the country?

- When there is a demand to import only the production which suits EU standards, it is necessary to establish strict norms and regulations for it. First of all, there should be proper infrastructure, waiting storages and a laboratory equipped with modern appliances.

There are certain norms which have to be completed: Firstly, the government must pass a law about controlling the local or imported toy production which suit EU standards and hold proper certificates. Secondly, the law must oblige companies to import only the production which suits the standards. Finally, it is important that the production will be checked on the border in the laboratory and its safety will be approved. This is a system which EU uses to control the production quality. If there is a demand to make steps to improve the situation, we will be one of the first companies which will support these initiatives and follow all the norms.

- It is unfair that, because of illegal activites some companies implement, the whole industry is affected…

- I agree with you, the actions of such companies are dangerous for the market. There are a lot of cases in European countries when a certificate does not match supervised production and that’s why laboratories are necessary. In this case, both, sales person and customer are victims. Competition agency should become more active, because we are in the unequal conditions with some dishonest sellers. It is a big chain which should be fixed.

- Before the market and production is controlled, can you advise us how to avoid low-quality production?

- Considering current situation, I can only advise customers to buy products considering its price and visual condition. Currently, there are no other ways to solve the problem. At the same time, I have to tell Georgian customers that there is no such a thing as a cheap and high quality product. We should get used to an idea that the high quality has its price. Therefore, our company will never focus on lower prices. We have chosen a transparent communication with our customers. We always give them detailed information about the product and they make a decision only afterwards.

- What are the tendencies in toy industry nowadays? To what extent is it an active and stable market?

- The age limits for toys decreased very much in general. 20 years ago, children usually

played with toys until 12. Now, the age limit is 7. The toys have been replaced by video games and modern technologies. The founder of “Dadu” is my 14 years old daughter, who is involved in this business for 2 years already. It was her idea to organize different activities to involve different age groups in it.

- You are an active member of business association “Women for future” . How would you evaluate the activities of the association?

- First of all, I want to thank the founders of the organization and the director, Ms. Nino Ganishashvili. Business association “Women for the future” unites women with common interests and gives entrepreneur women a chance to participate in the social-economic development of the country. We get a chance to share our knowledge and experience with each other. This is a big team of business women who present themselves not only in Georgia but on an international business forums and share news and new methods with association members.

- What are the challenges a woman entrepreneur has to face?

- With the help of association, there are many good things done for entrepreneur women, which enable them to overcome the obstacles which are basically very individual. In many cases, they don’t trust women as much as men, which prevent them to get credits and conduct negotiations.

- Compared to last year, recently, the development of women entrepreneurship has become an important issue and they organize training programs and various activities for women. Do you think it is necessary, effective and actually results in real outcomes?

- The role of women in business increases daily, therefore the attention towards women increases too. I think it is a very nice trend and very effective when governmental, non-governmental and banking sector promotes the development of women entrepreneurship.

- You started a business when you were very young and it would be a surprise to hear you did not have a difficult period.

What would you tell the beginners who start their career in business?

- Never give up. Remember that you are the captain of your ship, your life. Most importantly, believe in yourself. Believe in your hands which work, your brain which thinks and a heart which loves. Think, decide, make an action and never stop.

- What are your plans in terms of toy business development? Do you have a plan to try to work in another industry?

- We will have news in toy market. We are already selling handmade souvenirs, toys, lanterns made from old wood in the network.

My personal challenge is to learn how to make puppets, which are polymeric clay puppets. At this point, im in the process of learning and I have a visit planned abroad to raise my qualifications. We will start selling the toys in 2017 and we will also have few exhibitions.

As for another industry, I have news in this field too. It is my new business which is totally different from what I already have. The project is ready and we are working on it intensively.

I will not give more information about it now.

I’m planning a presentation in spring, 2017 and I will gladly give information to CBW journalists as well.

10

BUSINESS

December 12, 2016 #173

Badagoni to Launch Wine Exports to USA in 2017 Badagoni strong drinks manufacturing company plans to launch wine exports to the USA in 2017, the company founder Giorgi Salakaia told the Business Contract news portal. The company will enter the US market stage by stage and strengthen positions in 2018-2019, he said.

Currently, the company has not determined an exact volume of exports for the US market, Salakaia noted.

“We were getting ready for this period and developing this product. This is GAU 5 – new line. This is a new brand and this is wine of 5 types, including 2 red, 2 rose and one white wine varieties”, Giorgi Salakaia said.

AIR COMPANY

FZC

Channel Georgia FZC to Attract UAE Businessmen to Georgia

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ith the motivation to draw more FDI from foreign markets, in particular from UAE, FADY ASLY, Chairman of International Chamber of Commerce (ICC) recently founded an international consultancy firm – Channel Georgia FZC. Property Georgia interviwed Mr. Aslyregarding Georgia’s investment climate and the role the firm he founded will play in Georgia – UAE business relations.

– Channel Georgia FZC is a brand-new unique International Consultancy Firm based in the UAE. What is the main goal of the company?

Channel Georgia is a unique consultancy firm based in the UAE with three main goals: 1- Facilitate the exports of Georgian products and produce to all the Arab countries of the GCC 2- Bring in Investors from the GCC countries into Georgia 3- Create an Investment Fund exclusively for Georgia – Why UAE and Georgia? What are the concrete projects you, as the founder, have set for implementation in short/mid/long term perspective?

We chose the UAE because among all other countries of the GCC the UAE are the most

business friendly. In addition there is a serious interest from the UAE and other countries of the GCC in Georgia.

Georgia is looking for FDI and the GCC countries are loaded with capital that don’t know where to go and therefore Georgia should be a great recipient for such capital considering the amazing opportunities and good business climate in the country.

On the short term we are helping Georgian exporters to register their products in the GCC, find distributors and put their export machine in motion.

We are also identifying the most serious opportunities for investment and talking with high net worth individuals in the GCC to put them on board.

On the medium term we will have an Investment fund of about one hundred million US Dollars earmarked for Georgia.

– Which sectors are UAE investors interested in Georgia most and how promising could Emirates market be for our country in regards to export?

UAE investors are mainly focusing on hospitality business and real estate opportunities and some agriculture projects. As for exports it is vital for Georgia to open new markets and reduce the gap of the trade balance.

NEWS

GEORGIAN PRODUCTS

The Cheapest and the Most Expensive Tour Packages for Georgians during New Year

“Made in Georgia” Highlights Challenges Faced by Local Producers’ Activities

According to tourist agencies, the cheapest destinations are: Egypt (Hurghada) -400 USD (6 days -7 nights) Hungary (Budapest) 300 EU (6 days -7 nights) Czech Republic (Prague) 420 ( 6 days -7 nights)

he most expensive destinations are long distance places such as : Thailand 2000 USD (7 nights) Maldives 2000 USD (7 nights)

Georgian Startup OptioAl Obtains FinTech Award in Germany FinTech event in Berlin has for the first time hosted Fincluders: Startup Challenge contest.

About 100 startups were represented at the competition and the jury selected only 15 best ones, including OptioAl, one of the successful projects of Startup Georgia contest.

According to TechnoPark information, OptioAl project authors have obtained a special award – Best FinTech Startup from Region and 5 000 EUR prize.

Export markets are not only limited to the UAE but include as well Saudi Arabia and the other GCC countries.

– Will Georgia FZC work with government circles, both Georgians and UAE officials? If yes, what are the urgent topics on agenda?

Technically Channel Georgia FZC plays the role of the Georgian Investment Agency in the UAE and therefore we keep very close working relation with both Georgian and UAE authorities to catalyze business between both countries.

– Channel Georgia FZC partners are famous business people, how do you find them and what’s their motivation for joining the company?

Channel Georgia is structured in a unique way compared to other consultancy firms; we have divided the responsibilities by sectors of the economy like energy, real estate, banking and financial services, agriculture, tourism etc…

Each sector is handled by a partner that is the best in their field, this is a guarantee of seriousness and success. We took the best professionals for each sector; all of them are famous businesspeople with great experience.

We don’t believe in theoreticians we believe in practitioners

Techpark Tbilisi, Business Georgia with the support of Business Contact will organize a Business Forum “Made in Georgia”. The chosen topics exactly meet the challenges faced by local producers’ activities, which in a wider context are very important for different types of businesses.

The audience of the Business Forum “Made in Georgia” will have an opportunity to become acquainted with a detailed information and receive answers on all the important questions, that will simplify the correct perception and estimated role of local businesses strengthening the country’s economy and creating favorable business environment.

Topics discussed by the governmental or private sector will be the following: Georgian Products on Local and Global Markets: speakers will discuss the country’s Import substitution opportunities, consumer attitudes and purchasing behavior towards locally manufactured products, the production spectrum, product competitiveness – quality and international standards, the country’s potential according to the production areas, trade relations, as an additional opportunity and its impact on export and import, success stories of Georgian brands.

Producing Goods & services in Georgia, Challenges & Opportunities: On the second panel speakers will discuss Georgia’s potential in producing goods and services, main concerns of producers, government incentives, international facilitators, the role of innovation for production, promotion entrepreneurship mindset, financial resources, the role of the banking sector, foreign direct investments and media.

The forum will represent around 300 participants, including high level government officials, commercial and international sectors, entrepreneurs and start-ups, Chain store representatives, distributors, Importer and Exporter company representatives, Investors, Financial institutions, media, Chambers of Commerce & Industry, individuals who represent decision-making organizations, play a key role in creating effective business environment and developing further process.

who operate businesses on the ground; all our partners are businesspeople and among the most successful in what they do.

– What is a geographical and sectorial scope of your consultancy business?

We cover all the countries of the GCC like the UAE, Saudi Arabia, Kuwait, Bahrein, Qatar, Oman and the fields that we cover are agriculture, energy, banking and financial services, real estate, tourism, water treatment technologies, franchising, trade and transportation.

In addition to that we have business development and market research partners of the highest level.

– Passion To Shine – what is meant under Channel Georgia’s mission statement?

Well “Passion to Shine” is the motto of our firm, it was inspired to me by one of my quotes in the book that I wrote, “Life with Scorpions”; this quote is one of the many lessons that I have learned in life and it says: “ I have learned that if we are very good at our job we will succeed but if we want to shine we need to have passion” At Channel Georgia FZC we all have passion for our job, that’s why we shine at what we do!

“Adjara Group Hospitality” Presents New Georgian Air Company – Aviator “Adjara Group Hospitality” is the largest and the fastest-growing holding company in hospitality sector of Georgia in both quantitative and qualitative terms that owns and manages Rooms Hotel Tbilisi, Rooms Hotel Kazbegi, Holiday Inn Tbilisi and Fabrika Hostel. “Adjara Group” presents new Air Company – Aviator.

Aviator is first Georgian Air Company that offers Air Taxi service.

Company will provide domestic as well as international charter flights. Our passengers will have a possibility to reach preferred destinations with comfort in shortest time possible, for business or leisure. Aviator will be operating with the latest aircraft “Beechcraft” KingAir C90GTX designed and manufactured in the United States.

“Beechcraft” KingAir is a modern luxury designed aircraft for five passengers, including the newest technologies; aircraft provides comfort, safety and smooth flights. Aviator aims to support tourism and general aviation in Georgia, which is important for country’s economic development. Flights operated by Aviator Air Taxi will also positively affect companies within the field.

Aviator’s staff and pilots were trained in one of the best training centers in the United States. At this stage the company employs more than 20 aviation professionals, while in total Adjara Group Hospitality counts more than 1,300 employees.

Within the frames of “Spatial Planning of the Country” project, implemented by Georgian Government, Adjara Group aims to contribute with various activities such as building Airport in Stepantsminda, which will support the positioning of Georgia as a modern tourism destination.

Economics of Autism Medical tourism counts over 3 thousand years. Bathing establishments were an integral part of sports facilities in Ancient Greece. After the Romans had conquered Greece, they took over not only its arts and sciences, but also its experience in hydropathy, or water cure. Unlike the Greeks, however, who were using only cold water in their baths, the Romans started building baths and swimming pools using the water of the hot springs—they called them thermae (from Greek θερμός thermos, “hot”).

Dr. Andrei Maximov Maximov&Partners LLC am@maximov.com www.maximov.ge Seeing Differently Foundation for children with autism spectrum disorder: www.autism.ge

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he word came into usage after a town’s name in Sicily where the waters of the hot springs had been used for healing purposes: it was called Thermae. One more term of the medical tourism is ‘spa’, and it is related to a small town in Belgium, Spa, located in the foothills of the picturesque Ardennes. Today Spa is better known for its racing circuit and Formula One World Championships while during the Middle Age it was famous for its healing waters that were popular with the European aristocrats. Russian emperor Peter the Great had spent several days in Spa taking medicinal baths and drinking healing waters. He was so much impressed that as soon as he got back home he gave orders to look for medicinal waters in Russia. Many locations were discovered at the time, and G. Schober, Peter the Great’s physician in ordinary, a German, called them ‘Kurort’, i.e. health resort (from German ‘Kur’ – health treatment, cure and ‘Ort’ – place, location).

This was when all kinds of ‘vody’ (waters in Russian) appeared on Russian maps: Martsialnye Vody, Lipetskiye Vody, Sergievskiye Vody, Caucasian Mineralnye Vody and many others. During the Soviet period Georgia was deservedly regarded as the health resort region for the whole country, with the most popular balneotheraputic spas and health centers: any trade union member had as his or her most cherished dream an opportunity of getting a voucher for a health trip to Tskaltubo, Borjomi or Likani.

Medical tourism today has gone far from what used to be “water cure”. Vast sums of money are related with it now: its earnings increased more than tenfold in the last ten years—from 40 billions to half a trillion US dollars, and its share in the global GDP will reach 2% soon (to compare, it is only two times less than the GDP share of the whole global agriculture!). The rationale is quite varied for different medical tourists: some is ready to pay any amounts of money for highly qualified medical care (mostly for the treatment of cancer, cardiologic and orthopedic conditions) while others prefer to get their dental work done where it’s cheaper.

The latter goes also for trips to have plastic surgery done while still others in Canada or the USA cannot wait until their turn is up at their medical insurance company, so they prefer to travel to Latin America or Eastern Europe where they can get immediate medical assistance for less money. Medical tourism is especially rapidly growing in the developing Asian countries, such as India, Thailand, Korea, and China, where the treatment of many illnesses that are not covered by medical insurance in the patient’s home country may cost one quarter or even one tenth of the sums needed for analogous procedures in the USA. Georgia is, unfortunately, on the sidelines of these developments. Well, Georgians do participate in the medical tourism, yet mostly as patients, be it in Turkey, Israel, Germany or France. No reverse current is noticeable. Certain separate projects for reviving and developing balneological spas (Tskaltubo and Borjomi) are being realized, but they are neither here nor there in terms of changing the game for Georgia’s national economy as a whole. This is a separate topic that should be discussed, of course, with the understanding that this industry is highly competitive and that Georgia has not been able to demonstrate special competitive advantages.

Yet, I would like to share my ideas here

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OPINION

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regarding a very specific niche of medical tourism that is becoming ever more popular in the global market. If handled properly and professionally, this could become a niche for Georgia to fill within the foreseeable future. I am referring to courses of medical cure (both short-term and long-term) for children, teenagers and adults suffering from autism spectrum disorders. It is no secret that a true autism epidemic is raging in today’s world and that it is becoming ever more widespread every year. The demand for rehabilitation and social adaptation services is growing even faster as far as children with special needs are concerned.

Parents are ready to pay any sums of money so that their child can become a part of the society. They are, however, very eager to see positive results which can be achieved only through the implementation of the international scientific and practical experience in treating this condition. In my view, the best results in this area were achieved in Israel and Switzerland. Three-week courses of one-on-one coaching at one of the Israeli rehabilitation centers cost 13600 US dollars for the young patient’s parents (without food and board) while the cost of the 20-day study course at the Swiss FEDEA School is 16 thousand US dollars. A six-month study program at the FEDEA School costs close to 100 thousand US dollars (school from 9 a.m. to 4 p.m., Monday through Friday, with the rest of the time to be spent with the parents; living costs not included). The school provides guarantees, in fact, that after the six months the student’s IQ will increase by 10-30 points! People from all around the world come to get the treatment at this school, and its site is supported not only in all major European languages, but also in Arabic, Hindi and Chinese!

It might seem that there is nothing easier than acquire the methodology, master the therapy and then start offering rehabilitation procedures in return for a fee. Unfortunately, this is exactly how it happens most of the time… Superficial attitudes in dealing with autistic patients do exist everywhere, not only in Georgia. When treating other conditions one must purchase expensive equipment, medications, use high-tech facilities, while with autists one may get an impression that any specialist can handle them after only short training courses. Yet, quite the reverse is true!

Finest nuances are very important in this case, and they can only be appreciated only with the accumulation of major practical experience and when acquiring knowledge at the confluence of such disciplines as psychology, pedagogics, neurophysiology, pediatrics, neurology, genetics and behavioral analysis. There are only few certified specialists of this kind in the world, and this is why they cost so much.

Swiss experts make every cent of their very expensive program work for the client while there is no use seeking help from quite many medical centers in other countries even if they were to pay parents for approaching them in the first place… Incorrectly applied therapeutic procedures become counterproductive for the little autists.

What should Georgia do in this respect?

First and foremost, “clean up the act” in its own “kingdom” in order to avoid mistakes which have been already made in other countries. Let us list them.

1. “Georgia is an exception to the rule”. This is an assertion that Georgia, supposedly, has been spared the global epidemics of autism due to the singularity of its national character and its traditions that exert positive influence on families and regulate social behavior. Not true: if the number of children diagnosed with ASD (Autism Spectrum Disorder) was not rising quickly in Georgia over the last decades, then it only means that no effective professional diagnostics are in existence around the country, especially at an early stage. That is, children have not been getting adequate therapy, parents were not aware of the kind of problem they were facing, and little children have been losing their life’s chance for a rehabilitation in the future.

2. All children and adults with special needs and/or with physical challenges deserve the state’s attention and are worthy of its financial and social support. Yet, both state officials, teachers and health care workers must remember that all people with disabili-

ties are different! They have different needs, they must get different therapeutic procedures, and their chances for social adaptation are different as well. It is categorically prohibited to put in one group little children with organic deficiencies and autistic kids.

They will all be negatively affected.

3. The autist spectrum of each child requires an individual route of rehabilitation. There is no cure-all solution, no universal formula applicable to any patient. Any thoughtless copying of known and generally accepted methods (whether it is inclusion in education, alternative communications for nonspeaking children, sensory, ABA or other types of therapy) may not only provide no alleviation, but become counterproductive.

4. The most important fact for the state: spending 10 Lari today for early diagnostics of autism and creation of national rehabilitation system the state budget would save 1000 Lari tomorrow. That is, by returning both children and their parents into the society as its full-fledged members. And vice versa: all those children that were not timely diagnosed as autistic will not go away. Most of them will live off their parents, the society and the state for the rest of their lives.

Georgia is, unfortunately, on the sidelines of these developments.

Well, Georgians do participate in the medical tourism, yet mostly as patients, be it in Turkey, Israel, Germany or France.

No reverse current is noticeable. Certain separate projects for reviving and developing balneological spas (Tskaltubo and Borjomi) are being realized, but they are neither here nor there in terms of changing the game for Georgia’s national economy as a whole. This is a separate topic that should be discussed, of course, with the understanding that this industry is highly competitive and that Georgia has not been able to demonstrate special competitive advantages.

A professional rehabilitation system for children with ASD must be established.

Workshops on internationally acknowledged therapies should be conducted, supervised by recognized global experts, the true gurus of autism control. We should start an intensive and persistent program aimed at training highly skilled specialists in this area who could help children in Georgia. At the same time, we should develop the highly profitable medical tourism.

Especially since Georgia is a great place for combining the therapeutic courses for the little kids and the full-fledged recreation of their exhausted parents. Georgia does have three competitive advantages in this respect.

First, it is in Georgia that autists may feel to have come to a wonderland. Why? Because Georgians are incredibly hospitable and they are also very affectionate to children, any children. If the society in the country is correctly attuned to the issue, Georgians could easily create an “autist-friendly environment” both for autistic children and their parents across the whole country, from city shuttles to theaters and restaurants.

Second, Georgia’s climate, nature and sightseeing attractions can make not only children, but also their parents happy and well-adjusted. While the kids will be getting their treatment with the specialists, parents can go sightseeing, enjoy their spa procedures, eat great food at restaurants thus getting their well-deserved reward.

Third, to accomplish all of that specialists are needed, people with sound expertise, practical experience and big hearts. There are big hearts in Georgia all right, as they always used to be. What is now needed are only expertise and experience.

Private Insurance Prices to Rise 20-25% “There were points of intersection of the private and public insurance, but their share is not very large in the total volume of insurance business. The main point of reference is that public and private insurance should be effective.

As reported, the government intends to separate people who have private health insurance from those who use the state insurance.

Private companies believe that this can lead to an increase in the cost of insurance packages. In particular, according to the director of “PSP-insurance” Vladimir Bezhashvili, this initiative would lead to an increase in the cost of insurance by 25%.

The exact figures depend on the specific insurance packages, but the overall rise in prices is inevitable.

Of course, prices will not double but a 20-25% incraese is inevitable, “he says.

Inm his words, the initiative is correct in the sense that the state can not pay for treatment for all citizens, but the division should be in terms of income and not the presence or absence of private insurance.

“The question must be addressed comprehensively, since the mere fact that a person is insured by a private company does not mean that the state shouldn’t take care of them,” – Bezhashvili notes.

At the same time he supports the government’s and Parliament’s intentions to solve this issue.

“The fact is this could not continue as there are a lot of confusion both in insurance companies and among the population.

Who pays for that, who uses public insurance who

are insured by private company, which of them is of a higher priority, etc.

Eventually the population suffers, “- Bezhashvili explains.

According to the Business Development Director at the insurance company “Ardi” Mikheil Japaridze, at this stage it is difficult to make any comments on this issue, as the details of the initiative are yet unknown.

“There were points of intersection of the private and public insurance, but their share is not very large in the total volume of insurance business.

The main point of reference is that public and private insurance should be effective. With regard to the increase in the cost of insurance services, it is difficult to say how the initiative of the government will affect the financial capacity of specific companies, “- s Mikheil Japaridze says.

CEO at the insurance company “GP Holding” believes that the government should encourage citizens to obtain private insurance that will reduce the financial obligations of the state. In his view, the separation of the private and state Insurance will lead to higher prices for services, since many will refuse the private insurance in favor of the state.

“This will increase the costs of the state program, and the result will be the opposite to what the government wants to achieve, “ - he concludes.

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Marjanishvili Theatre’s “Begalut – in Exile” in Cameri International Festival of Theatre, Tel – Aviv, Israel Marjanishvili Theatre will present 2 performances - “Begalut – in Exile”, directed by Levan Tsuladze in the frames of International Theatre Festival in Cameri Theatre, Tel – Aviv, Israel.

Performances are scheduled on December 19 and 20 at 20:30.

Briefly about performance: Story based on several fragments from Shalom Aleichem’s and Guram Batiashvili’s novels

BEGALUT – IN EXILE Performance without text

There is no word, but there is no silence as well…

Imagine as if we observe the lives of two big and happy Jewish families through closed window: we do not hear their voices but we feel their mood - great and contagious . Everyone from the families is joyous and triumphant, and to them, evil is a foreign and distant concept.

But destiny slowly alters their lives and one day peaceful and happy lives are suddenly threatened with utter destruction.

The time of heartbreak, betrayal and bitter disappointment starts. Nevertheless - they still try to direct the course of fate to their advantage. But the efforts are in vain – the future filled with anxiety, intense drama and tragedy awaits them.

It is as if everything has come to an end...

Yes, but it is impossible to defeat those who even in destruction are preparing themselves for a future triumph...

Director / Scenographer: Levan Tsuladze Composer: Vakhtang Kakhidze Costume designer: Nino Surguladze Choreographer: Gia Marjania Assistant director: Nino Kalandadze Jewish lullaby performed by Neka Sebiskveradze Cast: Beso Baratashvili, Guranda Gabunia, Ana Grigolia, Barbare Dvalishvili, Ana Vasadze, Nato Kakhidze, Manana Kozakova, Nika Kuchava, Eka Nijaradze, Giorgi Kiknadze, Konstantine Roinishvili, Teona Kokrashvili,

Nino Tsuladze, Giorgi Khurtsilava, Givi Chuguashvili.

“BEGALUT- IN EXILE” by Levan Tsuladze is a non - verbal performance staged in the drama theatre by means of verbal methods; there is no word but there are acts, plasticity, choreography, gestures, music and noise.

There’s no word, but there is no silence here.

The scenes seem to be shaped by a film camera lens. The director uses the features specific for a silent film - including mise en scene and composition, editing the episodes and lighting design.

The story of two Jewish families met in exile - the families moved around the world in search for shelter and they settle down somewhere, in a foreign country.

The story of the Jews as a nation, as one of the nations who suffered most from a centuries-old exile, is a leading theme in the performance.

The generalization of the play starts a bit later: a multidimensional and eternal story about an executioner and a victim, the story about good and evil, about despair and hope - a deep metaphor for destruction and survival.

What we see on stage may as well be an illusion covered in mist, remote, yet familiar to us. Joyful, steeped in humor and happiness, extremely tragic at the same time.

It’s real, but unreal from the other side. It’s somewhere on the edge, where everything is unexpected…

Lela Ochiauri, Art critic

WORLD NEWS

December 12, 2016 #173

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Quotes

“ There’s going to The only entity to win as much as Gucci was Demna Gvasalia, who was awarded both the International Ready-to-Wear Designer title for his work at Balenciaga.

be enough people in life that try to limit what you can do… Don’t limit yourself.

”

“These destinations are fast gaining interest and popularity amongst our community of travellers all over the world”

Lorraine Wagner

TripAdvisor Community Turkey OfDemna Gvasalia Won Twice at the 2016 Fashion fers Georgia to Selects Baku, Azerbaijan as Trade in Local Top Asia Destination Awards

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he British Fashion Council’s re-branded annual awards ceremony, held Monday night in London’s Royal Albert Hall, drew scores of industry bigwigs from Anna Wintour to Kate Moss.

The event was branded as a “mix of the Academy Awards and the Met Ball,” and the red carpet — which included Gigi Hadid’s Atelier Versace pants-dress mash-up to Lady Gaga’s elegant Brandon Maxwell number — did its best to reflect that.

Whether or not the event will go to achieve the notoriety for which its organizers have planned remains to be seen, but the prestige of its awardees is impressive on its own. Many of the winners were unsurprising, with Hadid being lauded as International Model and Alessandro Michele taking home the International Accessories Designer trophy for Gucci. Gucci also received recognition for its chief executive Marco Bizzarri, who won the International Business Leader award.

The only entity to win as much as Gucci was Demna Gvasalia, who was awarded both the International Ready-to-Wear Designer title for his work at Balenciaga and the International Urban Luxury Brand award for Vetements. (Never mind the fact that the latter practically sounds like it was invented as a way to ensure that Vetements would receive some kind of

recognition, without which any fashion event in 2016 would seem incomplete).

Other highlights of the awards ceremony included Cool Teens™ Willow and Jaden Smith winning the New Fashion Icons statuette, photographer Bruce Weber taking home the Isabella Blow Award for Fashion Creator and designer Molly Goddard being recognized as British Emerging Talent for her frilly confections.

See the full list of winners here: Swarovski Award for Positive Change: Franca Sozzani Isabella Blow Award for Fashion Creator: Bruce Weber Outstanding Achievement: Ralph Lauren New Fashion Icons: Jaden and Willow Smith Special Recognition: British Vogue British Emerging Talent: Molly Goddard British Menswear Designer: Craig Green for Craig Green British Womenswear Designer: Simone Rocha British Brand: Alexander McQueen International Business Leader: Marco Bizzarri for Gucci International Urban Luxury Brand: Vetements International Model: Gigi Hadid International Accessories Designer: Alessandro Michele for Gucci International Ready-to-Wear Designer: Demna Gvasalia for Balenciaga

ADB Approves $1B Loan to Expand Shah Deniz II Field

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he Asian Development Bank (ADB) will provide $1 billion in private and public sector assistance to expand Azerbaijan’s Shah Deniz II, one of the world’s largest gas fields, said the message of the bank posted on its website Dec. 7.

The assistance comprises a $500 million private sector loan to the Southern Gas Corridor closed joint stock company (SGC) and a $500 million sovereigncounterguaranteed partial credit guarantee, according to the message.

The guarantee will back $526 million in commercial loans made by a consortium of international banks to SGC, which is 51 percent owned by the Azerbaijani government and 49 percent by the country’s state oil company SOCAR, the message said.

The message further said that the ADB assistance will provide additional revenues that the government can direct to social spending and to continued efforts to diversify the economy.

“ADB, through its private sector window, has already demonstrated strong support to the Shah Deniz gas field expansion through its direct assistance to this project in 2015,” said Michael Barrow, Director General of ADB’s Private Sector Operations Department.

“The expansion of the Shah Deniz gas field is key for Azerbaijan’s economy, providing the country a long-term revenue stream and diversifying its gas exports to Europe,” said Sean O’Sullivan, ADB Director General for Central and West Asia Department. “ADB’s support will help generate economic opportunities for the private sector, create thousands of jobs, and help boost Azerbaijan’s ties with neighboring countries and Europe.”

Shah Deniz II project envisages drilling 26 subsea wells, construction of two platforms, underwater pipelines for gas and condensate, expansion of the oil and gas terminal in Sangachal township, construction of two gas compressor stations and connection of this infrastructure to the South Caucasus gas pipeline.

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and Trans-Adriatic Pipeline.

ADB, based in Manila, was established in 1966 and is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Currencies

President Erdogan repeats call for Turkey to convert mattress savings in foreign exchange into Turkish lira and gold. President Recep Tayyip Erdogan has said Sunday that Turkey has taken steps to do its foreign trade in its national currency.

Speaking at an inauguration ceremony in the central province of Kayseri, Erdogan said: “We have taken steps also to do trade with Russia, China, and Iran in our local currency.” According to Eurasia Daily, Turkey offers Georgia scheme of trading with national currency and not in Euro or USD, as for them the Ministry of Economy of Turkey starting caring on negotiations with Georgia, Azerbaijan, Kyrgyzstan and Iraq.

“If we buy something from them [foreign countries], we will do that in their currency; if they buy something from us, they will do it in our currency.”

Erdogan noted that Turkey will “play its own game” in the economic arena against “all games” played against it.

The president reiterated his Friday call on Turkish citizens to convert their foreign exchange savings into Turkish lira and gold to help boost the value of the local currency.

Belarus Is Emerging as the Silicon Valley of Eastern Europe Belarus is run by a former collectivefarm manager and is known for manufacturing tractors. Now, the former Soviet republic wants to be known as the Silicon Valley of Eastern Europe.

The nation of 9.5 million people sandwiched between Russia and Poland has a well-educated population and relatively low labor costs. And it has become one of the largest and most established information technology outsourcing providers in Europe. In 2015 exports from Belarus’s main IT hub totaled $705.6 million.

Industry insiders credit the country’s Hi-Tech Park, a 123.5-acre haven for IT companies in eastern Minsk, the capital, for helping pave the way with tax breaks and a vibrant ecosystem. They say the Hi-Tech Park has created an environment that fosters innovation, despite the government’s reputation for tolerating little dissent.

“It’s a relatively cheap place to develop,” said Piotr Iwanicki, game director at Superhot Team, a Polish company that has developed a first-person shooter videogame called “Superhot.” “It is a perfect place to develop games.”

Belarus, often called Europe’s last dictatorship, still has a state-dominated economy, and President Alexander Lukashenko maintains a tight grip over political life.

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ripAdvisor, the travel planning and booking site, today announced the Travellers’ Choice awards for Destinations on the Rise, with Baku, the capital of Azerbaijan, taking the top spot for Asia, while the laid-back local scene of San Jose del Cabo in Mexico earned the ranking of number one in the world.

The awards recognise 43 destinations around the world selected by an algorithm primarily measured by year-over-year increase in positive TripAdvisor traveller review ratings for accommodations, restaurants and attractions, and increase in booking interest. This is the fifth year of the awards and Travellers’ Choice Destinations on the Rise lists were also revealed for the US, Europe and South America.

“These destinations are fast gaining interest and popularity amongst our community of travellers all over the world,” said Ms Janice Lee Fang, communications director for TripAdvisor, Asia Pacific.

“We hope these winning lists will inspire those planning trips in 2017 to consider booking their holidays with some of these rising destinations, be it Baku, Da Lat or Kuching”.

She added, “We were very excited to see Baku top the list in Asia – Azerbaijan has a fascinating cultural history that straddles the East and West and given that almost 65% of Asian travellers[1] surveyed said that their main travel motivation is to experience and learn about new cultures, we are hopeful this win will encourage even more travel and discovery to Baku in 2017.”

“We are very proud that the city of Baku became a winner of Travellers’ Choice Destinations on the Rise award. Being a city situated on the crossroads of civilizations between the East and the West, the architecture of Baku is a mix of European and Oriental traditions. It is a real gem of the Caucasus and must-see destination for travellers looking for a combination of history and modernity in one place,” said Mr Abulfas Garayev, Minister of Culture and Tourism of the Republic of Azerbaijan.

Travellers’ Choice Destinations on the Rise – Asia: (Excerpts in quotes below from TripAdvisor reviewers) Baku, Azerbaijan Situated along the Caspian Sea, Baku is a heady mix of Asian and Western cultures, of the old and new, all of which is best reflected in the city’s sights and landmarks. Visitors can explore the famed medieval Old City Baku, hailed as a “mustvisit”, which houses the UNESCO-listed Shirvanshah’s Palace, and Maiden Tower. Admire the city’s contemporary buildings such as the Heydar Aliyev Center, designed by Zaha Hadid, and the Flame Towers – a trio of skyscrapers covered with LEDs and displaying the mesmerising movement of a flame. Rest your feet after a long day of exploration at “the best hotel” in the city, the Hotel Badamdar Baku, for a seasonal average of $99 per night on TripAdvisor.

El Nido, Philippines Known as the Philippines’ last frontier, El Nido in Palawan is perfect for travellers seeking peace and solitude. Visit the off-the-beaten-path Nacpan Beach, ranked as Asia’s second best beach in this year’s Travellers’ Choice™ awards, for a ‘touristless’ experience and stay in a water cottage overlooking the sea at the El Nido Resorts Miniloc Island. Described as “paradise”, you can book a stay on TripAdvisor for $550 per night.

Jodhpur, India The second largest city in Rajasthan, Jodhpur is a reflection of the royal lineage it has witnessed for centuries. Majestic forts and palaces, remnants of the glorious past, adorn the landscape of this popular tourist attraction. Ratan Vilas, bookable on TripAdvisor at $75 per night is a mansion from the 1920s that has been beautifully refurbished into a hotel and “provides a wondrous setting to recharge and enjoy its magnificent setting”. Travellers can also visit the impressive Mehrangarh Fort which is one of the oldest forts in India and “offers sweeping views of the Blue City”.

Da Lat, Vietnam Situated 1,500 m above sea level, Da Lat is also known as the City of Eternal Spring, offering cooling respite from Vietnam’s otherwise tropical climate. Marvel at French-inspired architecture and make a beeline for the Linh Phuoc Pagoda, an

intricate structure with ceilings, walls and installations made from millions of pieces of broken glass, terracotta and beer bottles. Complete your trip by staying at the highly recommended Dreams Hotel offering a “Jacuzzi with rooftop views”, bookable at an average of $27 per night on TripAdvisor.

Jeju, South Korea A popular honeymoon destination, there is plenty to do in beautiful Jeju, known for its fresh seafood and natural attractions. Hike through Hallasan National Park, a UNESCO-listed site that is home to Hallasan Mountain, the highest peak in South Korea and famous for its vertical ecosystem of plants as a result of the varying temperatures along the mountainside. After a day of hiking, put your feet up at the award-winning December Hotel Jeju,, “with its spacious rooms” for a good night’s rest.

Rooms are bookable on TripAdvisor for $44 per night.

Sapa, Vietnam Set against a backdrop of towering mountains and undulating valleys, Sapa is located in north-west Vietnam and known for its trekking trails. Visitors can head to the Muong Hoa Valley for spectacular views of cascading rice terraces, peaks and forests and learn more about local culture as they make their way through hill tribe villages. Stay at Sapa Paradise View Hotel, “a gem of a hotel with the perfect location” for $40 per night.

Hualien, Taiwan Taiwan’s second largest city, travellers head to Hualien for its geological wonders of marble cliffs and waterfalls. A must-visit activity in Hualien is hiking through Taroko Gorge that offers breathtaking views of canyons, mountains and quaint local villages. Later, head to Kindness Hotel – Hualien Main Station for a good night’s rest, bookable on TripAdvisor for $148 per night. The hotel also offers complimentary supper, perfect for when the midnight hunger pangs strike!

Kuching, Malaysia A trip to Kuching is an enriching experience for any visitor, with the many museums and attractions which offer insights into the local heritage and traditions. Learn more about Sarawak’s main ethnic groups including the Iban, the Bidayuh and the Orang Ulu at the Sarawak Cultural Village, a living museum where staff live and work to preserve their heritage and cultural traditions. Check into the centrally-located The LimeTree Hotel, bookable on TripAdvisor for $33 per night, for “quality and comfort” during your stay.

Kota Kinabalu, Malaysia Lying on the northwest coast of Borneo is Kota Kinabalu, a popular destination for nature lovers with its renowned national parks and marine life.

Make an advance booking to take a speedboat to Tunku Abdul Rahman Marine Park, a cluster of islands great for snorkeling and diving and referred to as “the real beauty of Sabah”. Stay in the heart of the city at Hotel Sixty3, a hotel with an “unbeatable location” for $62 per night.

George Town, Malaysia George Town continues to draw tourists all-year round with its diverse history and delicious food.

Take a glimpse at the customs and heritage of the Peranakan community at the award-winning and beautifully designed Pinang Peranakan Mansion, which has been recreated as a typical home of a rich Baba (Straits-born Chinese man).

Then, head to the “fantastic” Le Dream Boutique Hotel(bookable for $62 per night), for free movie nights and complimentary snacks and wine.

Travellers’ Choice Destinations on the Rise – World: San Jose del Cabo, Mexico Whistler, Canada Jericoacoara, Brazil Kihei, Hawaii Baku, Azerbaijan El Nido, Philippines Eilat, Israel Las Palmas de Gran Canaria, Spain Tbilisi, Georgia Jodhpur, India For the complete list of Travellers’ Choice Destinations on the Rise award–winners for 2017, as well as reviews and candid traveller photos, go to: www.tripadvisor.com/TravelersChoice-DestinationsontheRise.

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December 12, 2016 #173

DIGITAL ART

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The Self-Taught Digital Art Hobbyist from Georgia - Tell us a little bit about your background. What made you interested in art? Who were your early influencers?

- I have been interested in art since I was a child. Drawing was always special to me back at school, and art classes were my favorite subjects. Even after they were pushed out of the school’s priorities list and dropped from the curriculum, I carried on doodling in my spare time, depicting my favorite cartoons, movies, characters from books and so on. It may sound cliché, but I had an active imagination and channeling it through drawings helped form some of my fantasies into something more tangible.

I think it is something we all try to do as children, one way or another.

I had a bit of a blind spot during my teenage years when I had to abandon drawing because of other commitments, best summarized as a general lack of time; especially since I never pursued art professionally or in university. It became accessible to me again once I discovered the digital medium, and found how easy it was to pick up where I left off using an iPad and years of pent-up urges.

In terms of influencers, I’d say surrounding myself with creative friends and lots of vivid stories did its part in kickstarting the impulse in me. My mother also used to draw, and seeing her elegant line art in my early childhood was probably a massive subconscious catalyst, as well.

Lazare Gvimradze is currently working at the PR and Marketing Communications Company Gepra, and in his spare time he creates digital artworks on his tablet. He agreed to talk to Caucasus Business Week about his hobby and what it means to him. You can view most of his work on his art page on Facebook at fb.com/ lazareart.

- What are your thoughts on the label of multimedia artist vs. performance artist vs. reality artist?

- Labels help differentiate practices and mediums, maybe even tap into an artist’s specific identity in what they do. It has become a subject of discourse to elevate some forms of art above others, especially in the 21st century; I’m no expert on this, but I don’t think arbitrary definitions invalidate art. Or at least whatever it is that they communicate.

Sure, some forms bear more responsibility due to their exposure and scale, others contribute in creating larger bodies of work – concept art for studio films, for example – but art is art, a way of expressing ideas and emotions in however complex a form the artist decides to employ. I feel like it would be irresponsible of me to say any more on this subject.

- Who are your current art inspirations?

Do you look to other contemporary artists’ work during your artistic process?

- I got entwined with multiple online networks of digital artists, and they’ve in turn become a constant source of inspiration for me. I wouldn’t say I have much of a process, since I dabble in a lot of styles – but when I have an idea but don’t necessarily have a specific vision for its final form, I look to others’ similar work and try and identify specific steps they’ve taken to reach results, mentally breaking down their artwork. This helps me sort-of “chart” a course for building my own thing.

One of my more recent obsessions is creating alternative posters for movies, video games or other popculture branches – and I’ve found that it’s a niche full of incredibly skilled artists ranging from classic masters like Drew Struzan to contemporary geniuses like Matt Ferguson or Orlando Arocena. Delving into the art communities also helped me rediscover the famous artists behind my favorite childhood memories – like Ralph McQuarrie, the almost-legendary visual mind from which Star Wars was born. All of these artists inspire me on a daily basis.

- What are your thoughts on the art community & market in Georgia as compared to the world?

- I am regretfully somewhat behind in keeping up with Georgia’s development in the modern art field, since my artistic “venture” is still just a hobby and I often find myself in a bit of an informational bubble. Despite this, I am aware of great strides being made by young and hungry up-and-comers who are matching international levels on almost every front. I recently entered into a partnership with a brand that aims to promote Georgian artists’ designs through a colorful clothing line, and the store through which they are sold – www.kokorishop.com – is completely on par with many global alternatives that I’ve come across. They’re one example in a growing awareness among Georgia’s youth that their artistic prowess can be harnessed and showcased throughout the world. Very happy to see it happen!

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PUBLICITY

December 12, 2016 #173