Tbilisi's Luxurious Biltmore Hotel Opens in Former Soviet Institute
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facebook.com/ georgiatoday Issue no: 866/38 • AUGUST 2 - 4, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50 In this week’s issue... NBG Decreases Refi nancing Rate by 25 Points PAGE 2 Construction on Rikoti Pass Highway Begins PAGE 3 FOCUS ON VIEWS OF PROGRESS Foreign We spoke to management of Investment to PriceWaterhouseCoopers Georgia Develop Sports to see what expectations they have for the country this year PAGE 7 Tourism in Georgia Tbilisi’s Luxurious Biltmore Hotel Opens PAGE 5 Electricity Market Watch in Former Soviet Institute Building GALT & TAGGART PAGE 9 US House Committee on BY TAMAR SVANIDZE Foreign Affairs Supports he Soviet era Institute of Marx, Georgia’s Territorial Integrity, Engels and Lenin (IMELI) was offi cially turned into a luxurious We fi nd out Why hotel in the heart of Georgia’s capital city Tbilisi on Sunday. POLITICS PAGE 10 TThe USD 140 million, 214-room Biltmore Hotel Tbilisi offi cially opened to a lavish display of fi reworks and laser shows Sunday night. Dechert OnPoint: The 32-fl oor hotel is the fi rst hotel in Georgia to have a presidential suite, according to the Consumer Protection hotel’s fi nanciers, the UAE-based Arab Invest- ment Company. & the DCFTA Continued on page 2 PAGE 11 Prepared for Georgia Today Business by Markets Asof29ͲJulͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP27.31 Ͳ0,2% +9,7% GEOROG04/21 104.13(YTM5.74%) Ͳ0,4% +0,4% GHG(GHGLN) GBP3.06 +1,3% +5,5% GEORG04/21 111.20(YTM4.22%) Ͳ0,2% +0,4% TBCBank(TBCBLI) US$13.20 Ͳ1,5% Ͳ GRAIL07/22 111.69(YTM5.42%) +0,2% +0,8% BGEOLN07/23 100.63(YTM5.89%) Ͳ0,2% na COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 42,46 Ͳ7,1% Ͳ16,1% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1351,28 +2,2% +2,4% GEL/USD 2,3510 +0,3% Ͳ0,2% GEL/EUR 2,6309 +2,1% +0,4% INDICES Price w/w m/m GEL/GBP 3,1099 +1,1% Ͳ1,7% FTSE100 6724,43 Ͳ0,1% +5,7% GEL/CHF 2,4222 +1,9% +1,0% FTSE250 17282,88 +1,8% +8,0% GEL/RUB 0,0356 Ͳ1,7% Ͳ4,3% DAX 10337,50 +1,9% +7,5% GEL/TRY 0,7869 +2,4% Ͳ3,4% DOWJONES 18432,24 Ͳ0,7% +4,2% GEL/AZN 1,4563 Ͳ1,5% Ͳ3,4% NASDAQ 5162,13 +1,2% +8,0% GEL/AMD 0,0049 ͲͲ MSCIEMEE 123,97 Ͳ1,1% +0,9% GEL/UAH 0,0948 +0,1% +0,3% MSCIEM 873,47 +0,5% +6,3% EUR/USD 0,8949 Ͳ1,8% Ͳ0,4% SP500 2173,60 Ͳ0,1% +5,0% GBP/USD 0,7560 Ͳ0,9% +1,5% MICEX 1944,62 +0,9% +3,0% CHF/USD 0,9695 Ͳ1,8% Ͳ1,0% MSCIFM 2567,05 Ͳ0,0% +1,7% RUB/USD 65,9445 +1,8% +3,5% GTIndex(GEL) 842,35 +0,1% Ͳ TRY/USD 2,9888 Ͳ2,5% +3,4% GTIndex(USD) 709,14 +0,2% +1,1% AZN/USD 1,6151 +1,2% +1,8% GEORGIA TODAY 2 BUSINESS AUGUST 2 - 4, 2016 Tbilisi’s Luxurious Biltmore Hotel Opens NBG Decreases in Former Soviet Refi nancing Rate Institute Building Continued from page 1 took over the re-design of the building. A new project was developed by UK- by 25 Points Originally built in 1934-38 in the Sta- based Architectural fi rm Shankland Cox linist Gothic style by famed Soviet in 2012. BY EKA KARSAULIDZE architect Alexey Shchusev – the man The design immediately ran into con- who designed Lenin’s Mausoleum in troversy after architects, historical Moscow’s Red Square – the building preservationists and civil society rep- materials were looted from the Arme- resentatives objected to the building of eorgia is starting to move nian Pantheon in Tbilisi after notorious a modern, glass skyscraper in the heart away from the tightened NKVD head Lavrenty Beria had the of Tbilisi’s historic center. monetary policy set by church and cemetery destroyed. As part of a negotiated settlement, the National Bank of Geor- Following the collapse of the Soviet Abu Dhabi Group agreed to restore the gia (NBG) in February Union, the building was used for gov- main building of the Soviet-era IMELI G2014, with a decrease in the refi nancing ernment purposes and housed Georgia’s building and incorporate it into the rate from 7 to 6.75. fi rst independent government under hotel. The decision was made after a thor- controversial former President Zviad Georgia’s Prime Minister Giorgi Kviri- ough look into the country’s macro- Gamsakhurdia in 1991-92. kashvili and Minister of Culture and economic forecast. “According to cur- It later briefl y served as the Ministry Knowledge Development of United rent projections, it is expected that of Foreign Affairs, before being heavily Arab Emirates Sheikh Nahyan bin infl ation will be below the forecasted damaged in the civil wars that plagued Mubarak Al Nahyan attended Sunday’s fi gure in the coming quarters, which Georgia in the early 1990s. grand opening. makes it possible to reduce refi nancing Large parts of the interior were “This is Dhabi Group’s largest invest- rates,” said National Bank of Georgia’s destroyed by both shelling and looting, ment in Georgia. The opening of this President, Koba Gvenetadze. “Unless and the institute’s former Soviet-era high-class hotel once again proves that other factors affecting the economy library that was dedicated to Marxist- there is a comfortable environment for occur, the monetary policy rate will be Leninist theory was sacked. investment and doing business in Geor- around 6 percent in the midterm period.” In 2006, developers Kempinski and gia,” Kvirikashvili said. As a result of a lower refi nancing rate, Vostok Capital pledged to turn the build- Sheikh Mubarak Al Nahyan added that people with loans in foreign currencies Lari has remained steady at around 2.1 people in Georgia deposited 14.3 billion ing into a fi ve-star luxury hotel, with the hotel suits Georgia’s growing high- will have to pay less for their debt obli- GEL for every USD, however it peaked GEL into local banks but borrowed 16.4 an original design by Berlin-based archi- end tourism potential. gations. Last year there were more than this weekend at 2.34. “This fl uctuating billion GEL. The NBG reiterated that tects Christoph Kohl and Rob Krier but “Georgia and its capital are stable and 7,000 borrowers who had loans linked exchange rate has infl uenced the public further changes to the monetary policy after the 2008 fi ve-day war between secure places to invest in the region. to the refi nancing rate, reported the and the currency they choose to bor- will depend on the infl ation forecast, Russia and Georgia, the original inves- This makes the country an ideal place NBG. row and save in,” said the NBG. factors affecting infl ation and the gen- tors pulled out and the Abu Dhabi Group for doing business,” Al Nahyan said. For the past few months the Georgian According to the fi gures, in June 2016 eral state of the economy. GEORGIA TODAY AUGUST 2 - 4, 2016 BUSINESS 3 TBILISI-BATUMI BATUMI-TBILISI Free One-Year Land Registration KUTAISI AIRPORT TBILISI CENTRAL BATUMI CENTRAL 09:00, 12:00, 20:00, 01:00 09:00, 12:00, 19:00, 01:00 Program Launches in Georgia 2 Station Square TAMAR MEPE AVE. 595 99 00 00 www.eurobus.ge citizens. Minister of Justice Thea Tsu- the registration process, including in fi nan- BY EKA KARSAULIDZE lukiani stated that the population would cial instruments. Following the conclusion benefi t from this project for a year. “Dur- of the program we will have a much health- ing one year, everyone should register ier and complete picture,” he claimed, add- he Georgian Land Registra- land that they were unable to previously ing that it is also a social issue – more than Construction on Rikoti tion Law came into full as a result of various barriers,” she said. 50 percent of the population are still involved effect from August 1. Prime PM Kvirikashvili said that, to date, only in agriculture. As such, this is expected to Minister of Georgia Giorgi 25 percent of land is registered- a big be a very important project for the strength- Kvirikashvili estimated this problem for the private sector in par- ening of the rural population. Tissue as one of most important for the ticular because the population cannot Additionally, the Georgian Prime Min- Pass Highway Begins population, and one which will contrib- capitalize on land which is actually avail- ister has asked the Minister of Justice to ute to the development of agriculture able for possession and for full use in create a mechanism that will eliminate The Rikoti Pass highway. and the land market. economic activities. the risk of abuse of the law. “It is impor- Photo: Alexandre Suladze / panoramio.co According to the law, mediation, obtain- “It’s good the land registration system has tant to have a correct and transparent ing certifi cates or other notary services been simplifi ed,” the PM said. “The State mechanism during land registration,” will be completely free of charge for is signifi cantly helping the population in Kvirikashvili said. spur of the Greater Caucasus, which BY EKA KARSAULIDZE divides Georgia into its western and eastern parts. Also known as Tbilisi- Kutaisi Highway, it connects Georgia’s onstruction of a 52-kilom- two main cities.