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IN TBILISI) Please Contact Publisher Warsaw: Gel190 Kiev: Gel200 hotels & ROUND TRIP, INCLUDING ALL TAXES ! CALL: 2 999 662 Airtickets PUBLICITY Overdependence More Media on the Internet and Expect to Pursue Smartphones Acquisitions in 2015 Read on p. 6 Read on p. 8 26 May, 2014 News Making Money http://www.finchannel.com GEORGIAN WEBSITE http://www.financial.ge How does ProCredit Bank Georgia to Discrimination the world feel Achieve 10% Loan Portfolio in Georgia about Jews Increase in 2014 by NINO DOGHONADZE and Israel, and and NORBERTO PIGNATTI how aware ISET Policy Institute are they of the n May 2, 2014, the Georgian Holocaust? parliament unanimously passed the law Oon the elimination of any visit form of discrimination. The stated objective of the law is to ensure that any physical barcelona or legal entity equally ben- efits from all rights defined by Georgian legislation, irrespective of race, skin color, language, sex, citizen- “We can help the best entrepreneurs, ship, place of origin, birth or residence, wealth or class MERAB PACHULIA with good ideas, that are able to manage status, religion or belief, na- GORBI their business and can create economic tional, ethnic or social be- longing, profession, marital development in the country,” Asmus or health status, disabilities, couple of Rotne, newly appointed General Director sexual orientation, gender weeks ago, identity, political or other some excel- considerations, etc. lent content The FINANCIAL activity due to the recent appeared on political changes, the theA World Wide Web - the Bank is again witnessing Continued on p. 2 global survey of anti-Se- n 2013 ProCredit a high demand for lend- mitic attitudes, known as Bank Georgia had ing. This year the Bank ADL Global 100. USD 11 million net plans to increase its loan External Trade profits, more than portfolio by 10%. of Georgia was originally fore- Continued on p. 6 Icasted. After two years Raises by 14 of decreased customer Continued on p. 10 Percent Tweets: Europe, Largest Share The FINANCIAL France and n January-April 2014 Germany In International external merchandise trade (excluding non- More Negative organized trade) in Tourism Receipts Georgia amounted to IUSD 3441 million (prelimi- Towards EU The FINANCIAL passenger transport. According to the latest nary data). 14 percent high- than Germany UNWTO World Tourism er year-on-year. The exports otal export Barometer, receipts in des- equaled USD 933 million earnings gener- tinations worldwide from (19 percent higher). while See on p. 5 ated by interna- expenditure by interna- the imports stood at USD tional tourism tional visitors on accom- 2508 million (13 percent CURRENCIES in 2013 reached modation, food and drink, higher). The negative trade TUS$ 1.4 trillion. Receipts entertainment, shopping balance was USD 1576 mil- lion in January-April 2014 May 24 May 17 earned by destinations and other services and from international visitors goods, reached an estimat- and its share in external 1 USD 1.7713 1.7522 grew by 5% to reach US$ ed US$ 1159 billion (euro trade turnover constituted 1 EUR 2.4125 2.3979 1159 billion, while an addi- 873 billion) in 2013. 46 percent. 100 RUB5.1620 5.0380 tional US$ 218 billion was 2 999 662 Email: [email protected] 1 TRY 0.8476 0.8329 earned by international Continued on p. 9 Continued on p. 13 © 2014 The FINANCIAL. INTELLIGENCE BUSINESS PUBLICATION WRITTEN EXPRESSLY FOR OPINION LEADERS AND TOP BUSINESS DECISION-MAKERS C M Y K 2 HEADLINE NEWS & ANALYSIS FINANCIAL financial news 26 May, 2014 | FINCHANNEL.COM CURRENT PRICES ON GASOLINE AND DIESEL W, GEORGIA Prices in GEL Prices in GEL Prices in GEL Prices in GEL Prices in GEL Super 0.00 Premium 2.22 eko Super 2.33 Eurosuper 2.27 Super Unleaded 98 2.32 Euro Super 2.32 GASOLINE PRICES PRESENTED BY Euro Regular 2.13 eko Premium 2.25 Premium Avangard 2.20 Premium Unleaded 96 2.22 Efix Euro Premium 2.19 eko Diesel 2.28 EuroPremium 0.00 Euro regular 2.12 Euro Regular 93 2.11 BUSINESSTRAVELCOM 26 May, 2014 Regular 2.08 HOTEL AND AIRTICKET BOOKING: Euro Diesel 2.26 Euro Regular 2.13 Euroregular 2.03 Regular Unleaded 93 2.08 Efix Euro Diesel 2.27 Diesel 2.09 Regular Energy 2.08 Eurodeasel 2.22 Euro Diesel 5 10 PPM 2.27 Euro Diesel 2.09 2 999 662 | SKY.GE ISSUE: 20 (400) CNG 1.05 Diesel Energy 2.10 © 2014 INTELLIGENCE GROUP LTD COPYRIGHT AND INTELLECTUAL PROPERTY POLICY The FINANCIAL respects the intellectual property of others, and we ask our colleagues to do the same. The material published in The FINANCIAL may not be reproduced without the written consent of the publisher. All material in The FINANCIAL is protected by Georgian and international laws. The views expressed in The FINANCIAL are not necessarily the views of the publisher nor does the publisher carry any responsibility for those views. PERMISSIONS If you are seeking permission to use The FINANCIAL trademarks, logos, service KHACHAPURI INDEX AS A MEASURE OF marks, trade dress, slogans, screen shots, copyrighted designs, combination of headline fonts, or other brand features, RETAIL SECTOR DEVELOPMENT (IN TBILISI) please contact publisher. “&” is the copyrighted symbol used by The FINANCIAL n light of recent developments in the retail sector, we decided to expand our FINANCIAL (The FINANCIAL) is registered Bazaar vs Supermarket Chain Prices| April 2014 trade mark of Intelligence Group ltd in Tbilisi survey beyond the main three ba- Georgia and Ukraine. Trade mark registra- zaars (Vagzali, Akhmeteli and Naftlugi) 4.0 12.0 tion by Sakpatenti - Registration date: to modern supermarkets and hypermar- Bazaar Supermarket October 24, 2007; Registration N: 85764; Ikets such as Carrefour, Goodwill and Smart. 3.5 Trade mark registratrion by Ukrainian State 10.0 Register body - Registration date: Novem- To ensure consistency, we looked at the same ber 14, 2007. products and brands across different types of 3.0 13% outlets. 33% 8.0 ADVERTISING A priori, it is not obvious whether super- 2.5 All Advertisements are accepted subject market prices should be higher (or lower) to the publisher’s standard conditions of than in open air markets. Supermarkets face 2.0 10% 6.0 insertion. Copies may be obtained from higher infrastructure costs, but their size advertisement and marketing department. 8% Please contact marketing at: gives them considerable market power with 1.5 [email protected] respect to suppliers. For example, Walmart, a 4.0 see financial media kit online US retail giant, is known for its ability to push 1.0 www.finchannel.com/MediaKit suppliers to the limit. This is not only about Download RATE CARD dictating low prices but also paying with a sig- 2.0 nificant delay. 0.5 4% Our results show that the largest Georgian -10% retailers are, on average, more expensive than 0.0 0.0 open air markets. When recalculated based Yeast Egg Flour Butter Milk Cheese on prices in supermarket chain stores in April 2014, our Khachapuri Index clocked 4.34GEL, ter, 8% in flour and 4% in eggs. In one ingredi- ity of retail networks to smoothen seasonal which is almost 1/3 higher than its conven- ent, yeast, supermarkets turned out to be 10% price fluctuations in fresh products, and ex- tional equivalent (3.34 GEL). cheaper. plore the impacts of i) increasing competition It easy to see from the chart that the gap There is little we can say about the dynamic and ii) changes in the policy framework related in prices is largest for fresh products that are development of the Georgian retail sector to Georgia’s signing the Deep and Comprehen- strongly affected by seasonal factors, such as based on just one month of observations, but sive Free Trade Agreement (DCFTA) with the milk (13%) and cheese (33%). The gap in other the sector will remain in the focus on our at- European Union. (Hint: EU food standards DISTRIBUTION product categories is rather mild: 10% in but- tention. In particular, we will monitor the abil- will mainly affect the formal retail sector.) The FINANCIAL distribution network covers 80 % of key companies operating in Georgia. 90 % is distributed in Tbilisi, Batumi and Poti. Newspaper delivered free of charge to more than 600 companies and their managers. To be included in the list please contact Discrimination in Georgia distribution department at: [email protected] by NINO DOGHONADZE and CONTACT US NORBERTO PIGNATTI EDITOR-IN-CHIEF ISET Policy Institute ZVIAD POCHKHUA E-MAIL: [email protected] [email protected] n May 2, 2014, the Phone: (+995 32) 2 252 275 Georgian parliament hEAD OF MARKETING unanimously passed LALI JAVAKHIA the law on the elimi- E-MAIL: [email protected] nation of any form of [email protected] Odiscrimination. The stated objec- Phone: (+995 577) 74 17 00 tive of the law is to ensure that COnsultant any physical or legal entity equal- MAMUKA POCHKHUA ly benefits from all rights defined E-MAIL: [email protected] by Georgian legislation, irrespec- Phone: (+995 599) 29 60 40 tive of race, skin color, language, HEAD OF DISTRIBUTION department sex, citizenship, place of origin, TEMUR TATISHVILI birth or residence, wealth or E-MAIL: [email protected] Phone: (+995 599) 64 77 76 class status, religion or belief, national, ethnic or social belong- COpy EDITOR: ing, profession, marital or health IONA MACLAREN status, disabilities, sexual ori- COMMUNICatiON MANAGER: entation, gender identity, politi- EKA BERIDZE cal or other considerations, etc. Phone: (+995 577) 57 57 89 Acute discussions between par- liament and church representa- PHOTO REPOrter: KHATIA PSUTURI tives, especially about the phrase on sexual orientation and gender MAILING ADDRESS: identity, preceded the adoption from disadvantaged groups are people.
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