Government to Create Initiative Group for Better Communication with Smes
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facebook.com/ georgiatoday www.georgiatoday.ge Issue no: 824/17 • MARCH 8 - 10, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50 In this week’s issue... Hotel Crowne Plaza Opens in Borjomi PAGE 2 Cushman & Wakefi eld | FOCUS Veritas Brown’s Take on ON BUSINESS the New Incentives for SECURITY the Hospitality Industry in Concerns are growing over the Georgia Magticom Chief David Lee is one of many who are talking about potential Russian take-over of potential social network abuse by the Russian government for the Georgian internet services PAGE 5 PAGE 3 creation of anti-EU sentiment in Georgia The Making of Nations Government to Create Initiative Group for ISET PAGE 4 Better Communication with SMEs Dentistry Today: All BY EKA KARSAULIDZE about the Doctor-Patient rime Minister Giorgi Kvirikashvili and Minister of Economy and Sustainable Relationship Development of Georgia Irakli Kum- sishvili met representatives of Small and Medium Enterprises to talk about PAGE 8 Ptheir role in economic development, government programs, and the establishment of better com- munication. The meeting with the representa- Georgia to Receive More tives of about 50 different SME industries was held in Expo Georgia on March 4. Azeri Gas Supplies, Mulls PM Kvirikashvili made a proposal to establish a permanent dialogue with representatives of initiative group which will link the relationship A similar system already operates with Large Gazprom Deal Small and Medium Enterprises. This implies between business and government, report the Businesses. personal meetings, as well as the creation of an hot issues and monitor the response of the State. Continued on page 2 PAGE 10 Prepared for Georgia Today Business by Markets Asof04ͲMarͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP19.4 Ͳ1,0% +6,9% GEOROG05/17 100.13(YTM6.75%) +0,7% +0,6% GHG(GHGLN) GBP1.61 +5,1% Ͳ12,2% GEORG04/21 105.90(YTM5.53%) +0,3% +1,2% TBCBank(TBCBLI) US$9.50 Ͳ +1,7% GRAIL07/22 104.44(YTM6.87%) +0,8% +2,2% GEBGG07/17 103.38(YTM5.07%) +0,3% +0,2% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 38,72 +10,3% +12,4% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1258,95 +2,9% +8,9% GEL/USD 2,4650 Ͳ Ͳ1,0% GEL/EUR 2,7130 +0,5% Ͳ3,1% INDICES Price w/w m/m GEL/GBP 3,5141 +2,8% Ͳ3,3% FTSE100 6199,43 +1,7% +5,1% GEL/CHF 2,4882 +0,5% Ͳ0,7% FTSE250 16931,19 +2,2% +5,2% GEL/RUB 0,0343 +6,2% +6,2% DAX 9824,17 +3,3% +4,6% GEL/TRY 0,8485 +2,9% Ͳ0,8% DOWJONES 17006,77 +2,2% +3,6% GEL/AZN 1,5165 Ͳ3,1% Ͳ3,2% NASDAQ 4717,02 +2,8% +4,6% GEL/AMD 0,0050 ͲͲ MSCIEMEE 116,68 +7,2% +8,3% GEL/UAH 0,0939 +4,0% Ͳ2,5% MSCIEM 790,97 +6,9% +7,0% EUR/USD 0,9086 Ͳ0,7% +1,8% SP500 1999,99 +2,7% +4,4% GBP/USD 0,7029 Ͳ2,5% +2,6% MICEX 1878,29 +3,4% +5,1% CHF/USD 0,9927 Ͳ0,4% Ͳ0,1% MSCIFM 2381,49 +2,9% +5,4% RUB/USD 71,8750 Ͳ5,8% Ͳ6,5% GTIndex(GEL) 886,18 Ͳ0,0% +0,0% TRY/USD 2,9045 Ͳ3,0% Ͳ0,3% GTIndex(USD) 708,13 +0,2% +1,0% AZN/USD 1,6250 +3,8% +1,9% GEORGIA TODAY 2 BUSINESS MARCH 8 - 10, 2016 Government to Create Initiative Group for Better Communication with SMEs Hotel Crowne Plaza Opens in Borjomi pay more attention to Borjomi infrastructure, BY ANA AKHALAIA which will make the resort an international tour- Continued from page 1 hotels), which is to be launched soon. ism hub. “However, to develop these fi elds in the right way, “Just a few days ago we announced that the “Naturally Large Businesses are important, I have we need your feedback,” the PM told business rep- nterContinental Hotels Group, one of the program ‘Produce in Georgia’ has added a new nothing against them, but not only well-known resentatives. “We want to listen to your ideas about world’s largest hotel companies, has entered component ‘Host in Georgia,’ which is to con- people should appear at meetings with top offi - what should be done to encourage SMEs in Georgia.” Borjomi, a resort town in south-central tribute to the development of hotel networks in cials,” the PM said. “The SME sector is a dynamic The meeting raised various issues: administra- Georgia, with its Crowne Plaza brand. The the regions. We thank company Dizon Limited force with the highest growth rates. Moreover, this tive, payment, fi nancial themes, issues of popu- fi ve-star hotel Crowne Plaza Borjomi was for the implementation of this particular hotel is one of the most important sectors of the economy larization of different areas, abolition of income Ioffi cially opened by Prime Minister Giorgi Kvirika- project. The company has also restored Borjomi in terms of jobs.” tax, creation of a ‘Front offi ce,’ where all govern- shvili on March 6th. sulfur pools, which have a long history and whose The head of the Georgian Government also dis- ment services will be available for businesses, and USD 32 million was invested in the hotel con- recovery was very important for this resort,” said cussed the four-point reform plan, one of the main much more. struction and 250 people were employed, 150 of the PM. directions of which is business promotion. The Both sides were satisfi ed as the entrepreneurs which were local residents. The Hotel manage- Borjomi is famous for its mineral water industry, reform plan involves government support, economy, had the chance to discuss their problems with the ment itself consists of 150 people. which is one of the largest exports of Georgia, the infrastructure and education. According to PM authorities and get a response. The Prime Minister stated that the hotel further Romanov summer palace in Likani, and the World Kvirikashvili, the government has many programs “The business sector is well aware of the govern- underlines Borjomi as one of the most important Wide Fund for Nature site Borjomi-Kharagauli for fi nancing new businesses. The Start-up Financ- ment programs that are designed for them,” said tourist destinations in Georgia. He pointed out National Park. Because of the supposed curative ing Fund will begin in the near future, the ‘Produce Minister of Economy, Irakli Kumsishvili. “We have that the number of visitors to Georgia has increased powers of the area’s mineral springs, it is a fre- in Georgia’ state program is expanding, as well as already heard and noted all the issues that they are by 23% compared to the same period in 2015. quent destination of choice for people with health its new sub-components, like ‘Host in Georgia’ interested in, and will begin work on their consid- He further added that the government should problems. (which supports the creation of a network of small eration soon,” he said. Ministry of Economy Creates New Agency to Develop Export Potential extent and other characteristics. BY ANA AKHALAIA The Trade Development Agency plans to organ- ize a number of bilateral inter-governmental economic meetings with the European Union new Agency, the ‘Trade Develop- and other European countries, to prepare phrase- ment Agency,’ has been created in books for delegation visits and to cooperate with the Ministry of Economy and Sus- the diplomatic corps. tainable Development with the sup- port of the European Union and AEuropean countries on an Order issued by the GEORGIA Minister of Economy, Dimitri Kumsishvili, based on a governmental decision. TODAY To develop Georgia’s export potential, the new would like to agency’s main activities will consist of studying congratulate the markets of European countries, making trade its beloved turnover analysis, and preparing respective rec- team mem- ommendations. ber, Tim At the same time the Agency will provide con- Ogden, on sultations to business operators which are in a his recent trade relationship with the EU, identify their marriage to needs and problems, and respond to them. It will also provide interested entrepreneurs with infor- Anna mation on trade benefi ts. In addition, it will help Jorbenadze. them to make contacts with marketing companies Wishing you and business operators of the European coun- both long life tries. and much It will further gather information on Georgian happiness exporters in Europe, register them and carry out together! categorization of their activities, according to GEORGIA TODAY MARCH 8 - 10, 2016 BUSINESS 3 Cushman & Wakefi eld | Veritas Brown’s Take on the New Incentives for the Hospitality Industry in Georgia Tom Day, Regional Director of Cushman & Wakefi eld | Veritas Brown for Hospitality and Investor Services EORGIA TODAY had the market put short-term pressure on Gudauri and Bakuriani. in USD/EURO) for the fi rst 2 years ing of consulting services. privilege to meet with Tom occupancy and average daily rates across In total, we have performed Feasibility • Minimum loan volume – GEL 500,000 Cushman & Wakefi eld hospitality con- Day, Regional Director of the sector during 2015. The supply pipe- Studies for 17 hospitality projects through- (or equivalent in USD/EURO) sultancy services for all of these incentive Cushman & Wakefi eld | line is strong in both Tbilisi and Batumi out Georgia as well as sourcing interna- • Maximum loan volume – GEL 1,000,000 schemes can be co-fi nanced by Enterprise Veritas Brown for Hospital- and during 2016-2018 approximately tional hotel operators for some of these (or equivalent in USD/EURO) Georgia under the Ministry of Economy Gity and Investor Services, to discuss the 2000 hotel rooms of 4/5 star standard projects including Radisson, Swiss-bel- • Partial collateral guarantee for the fi rst and Sustainable Development of Georgia.