Georgia National Public Opinion Survey on Remittances July, 2007 Methodology

Sample size 5,005 Georgian adults

Dates of interviews January 3 – 28, 2007

Languages of Georgian interviews

Margin of error 1 percentage point 51 Demographics of Remittance Recipients 52 Age

14% 18-24 24%

20% Adult 25-34 17% population*

28% 35-49 29%

20% 50-64 14% Remittance recipients 17% 65 + 16%

0% 10% 20% 30% 40%

53 *Georgian Department of Statistics Gender

46% Adult population Male 54%

45% Remittance Female recipients 55%

0% 20% 40% 60% 54 Monthly Household Income

37% Less than 100 lari 25%

31% 100 to 250 lari Adult 41% population

10% 250 to 400 lari 18%

7% Remittance 400 to 600 lari 9% recipients

4% More than 600 lari 4%

0% 10% 20% 30% 40% 50%

55 Official exchange rate is US$1.71 to 1 lari, National Bank of Georgia Education

Did not complete secondary 9% school 5% Adult 31% population Completed secondary school 31%

Some university or technical 28% school 27% Remittance recipients 32% University graduate or more 37%

0% 10% 20% 30% 40% 56 Regions

Tbilisi 25% 24% 16% 17% 11% Samegrelo-Zemo 14% Adult 12% population Kvemo 11% 5% Samtskhe 9% 9% 8% 9% 6% Remittance recipients 7% 5% 3% Mtianeti 3% 3% 3%

57 0% 10% 20% 30% Regions

1. 2. Samegrelo-Zemo Svaneti 3. Guria 4. Adjara 5. -Lechkumi and Kvemo Svaneti 6. Imereti 7. Samtskhe-Javakheti 8. Shida Kartli 9. Mtskheta-Mtianeti 10. 11. Kakheti 12.

„ Approximately 95 percent of the Georgian population resides in the 10 regions where polling was conducted. „ No interviews were conducted in Region 1 (Abkhazia) because of security concerns or in Region 5 (Racha- and Kvemo Svaneti) because it contains less than 1 percent of the 58 population. Urban vs. Rural

51% Adult population Urban 49%

53% Remittance Rural recipients 47%

0% 10% 20% 30% 40% 50% 60% 59 Remittances to Georgia 60 Do you have family members living in another country outside of Georgia?

37%

Yes

No 63% 61 Have any of your relatives living in another country outside of Georgia ever sent you money?

9% Yes

No 28%

Do not have family in 63% another country 62 Remittance Recipients By Region

Samtskhe Javakheti 18%

Samegrelo-Zemo Svaneti 12%

Imereti 11%

Kvemo Kartli 9%

Tbilisi 9%

Guria 8%

Kakheti 7%

Mtskheta Mtianeti 7%

Adjara 6%

Shida Kartli 5%

0% 10% 20% 63 Major Findings

„ Nine percent of Georgian adults – approximately 317,000 people – received remittances on a regular basis during 2006. 64 Country of Residence of Remittance Senders

Russia 45%

Western Europe* 17%

Greece 15%

USA 8%

Eastern Europe** 8%

Armenia / Azerbaijan 5%

Turkey / Israel 2%

0% 10% 20% 30% 40% 50% *Germany, France, Austria, Belgium, Switzerland, Netherlands, Italy, Spain,

65 Portugal, Finland, England, Norway **Ukraine, Czech Republic, Belarus Russian City of Residence of Remittance Senders

Moscow 54%

Saint-Petersburg 9%

Krasnodar 4%

Tiumen 3%

Rostov 3%

Armavir 3%

Stavropol 2%

Permi 2%

Volgograd 2%

Vladivostok 2%

0% 10% 20% 30% 40% 50% 60% 66 What is your relationship to the person who sends you money?

Father or Mother 13%

Sister or Brother 25%

Husband or Wife 13%

Son or Daughter 23%

Aunt / Uncle / 26% Cousin / Other

0% 5% 10% 15% 20% 25% 30% 35% 40% 67 How frequently does your family member send you money?

2 times a month or more 7%

Once a month 32%

Every 2 to 3 months 30%

Every 4 to 6 months 20%

About once a year 9%

Don't know / No answer 1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 68 Major Findings

„ The average Georgian remittance recipient receives money 8 times a year. 69 For how many years has this family member been sending you money?

Less than one 10% year

Between 1 and 3 40% years

Between 3 and 5 17% years

More than 5 33% years

0% 10% 20% 30% 40% 50% 70 How much money – on average – does your family member send you each time? In US dollars

$100 or less 33%

$101 to $200 37%

$201 to $300 19%

$301 to $400 3%

$401 to $500 3%

More than $500 2%

Don't know / No answer 3%

0% 5% 10% 15% 20% 25% 30% 35% 40% 71 Major Findings

„ The average remittance to Georgia is US$165. 72 Major Findings

„ The survey indicates that Georgia received approximately US$418 million or €304 million in remittances during 2006. 73 Remittances

Country of family member Amount in remittances Russia €140 million Western Europe €50 million Greece €45 million USA €24 million Eastern Europe €24 million Armenia / Azerbaijan €15 million / Israel €6 million Total €304 million 74 The Remittance Process 75 How do you receive this money?

At a bank 64%

By courier 20%

Family member travelling to/from Georgia 12%

Credit card or ATM card 2%

At a remittance company 1%

By mail 1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 76 How do you receive this money? By Location of Family Member

76% At a bank 54%

11% By courier 29% Russia Other Family member 12% travelling to / from Georgia 12%

1% Other 5%

77 0% 20% 40% 60% 80% How satisfied are you with the services of the bank or remittance company?

Very satisfied 78%

Somewhat 18% satisfied

Not satisfied 2%

Don't know / No 2% answer

0% 20% 40% 60% 80% 100% 78 Approximately what portion of the money you receive do you spend on daily expenses?

All 72%

Three-quarters 6%

Half 13%

Less than a 6% quarter

None 3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 79 Major Findings

„ Georgian remittance recipients spend approximately 85 percent of the money they receive on basic daily expenses such as food, housing, clothing, utilities and medicine. 80 Other than daily expenses, what do you use the money for?

Education 26%

Health or life insurance 21%

Buy or build a house 11%

Start a business 3%

Open a savings account 3%

Other 18%

0% 5% 10% 15% 20% 25% 30% 81 How often do you communicate with this family member or relative – the one that sends you money?

Everyday 9%

Once a week 40%

Once a month 30%

A few times a year 17%

Once a year 4%

82 0% 10% 20% 30% 40% 50% How many people – including yourself – benefit from the money you receive from your family?

1 person 8%

2 people 24%

3 people 19%

4 people 23%

5 people 11%

More than 5 people 14%

0% 5% 10% 15% 20% 25% 30% 83 Major Findings

„ Approximately 1 million benefit from remittances. 84 The Georgia Banking System and Investment Potential 85 Overall how do you see your family’s personal economic situation in Georgia? Remittance Recipients

Excellent 2%

Good 10%

Mediocre 64%

Bad 24%

0% 20% 40% 60% 86 Overall, do you have a positive or negative opinion of the banks in Georgia? Remittance Recipients

14%

5% Positive

Negative

Don't know / No answer

81% 87 Do you have a bank account? Remittance Recipients

11%

Yes

No

89% 88 Do you have any investments in Georgia? Remittance Recipients

Property 5%

Business 2%

Savings account 1%

None 92%

89 0% 20% 40% 60% 80% 100% Remittance recipients “very interested” in financial investment products

Health / Life 40% insurance

Loan to finance 32% business

Mortgage / Loan to 28% buy house

Finance university 26% education

Open savings 22% account

0% 10% 20% 30% 40% 50% 90 Russian – Georgian Relations and Remittances 91 Did your family member living abroad send you money during the last 3 months? Remittance Recipients with relatives in Russia

35%

Yes

No 65% 92 Does the conflict between Russia & Georgia affect your family members’ living condition in Russia? Remittance Recipients with relatives in Russia

4%

39% Yes

No 57% 93 Does the conflict between Russian & Georgia put obstacles in the money transfer process? Remittance Recipients with relatives in Russia

4%

33%

Yes

No

63% 94