facebook.com/ georgiatoday www.georgiatoday.ge Issue no: 842/26 • MAY 10 - 12, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50 In this week’s issue... PM Announces Future State Business Programs and Their Social Benefi ts PAGE 2 Helping SMEs Set Sail: EIF Signs InnovFin Guarantee with ProCredit Bank The Georgian Co-Investment Fund PAGE 4 has announced its FOCUS readiness to hand Electricity Market Watch over eight of its ON TOURISM SECTOR funded projects to investors GALT & TAGGART PAGE 7 DEVELOPMENT PAGE 6 New Job Places Increasing by 2.6 Million Annually EBRD to Invest 400 Million Euros in Thanks to Electronic Payments, says Moody’s Georgia This Year PAGE 8 Changing Habits: Kakheti BY EKA KARSAULIDZE Region Begins to Separate Paper and Plastic Waste he European Bank for Reconstruction and Devel- PAGE 10 opment (EBRD) is currently celebrating its 25-year anni- versary and has highlighted IC Group: Tits ‘historic investment’ in Georgia. In just a few decades of cooperation, the Insure Today, Bank has carried out 190 projects in Bruno Balvanera, Regional Director Georgia and has invested more than EUR of EBRD in the Caucasus, Moldova and Belarus and Nodar Khaduri, Pay Tomorrow 2.6 billion. Georgia’s Minister of Finance Continued on page 2 PAGE 13 Prepared for Georgia Today Business by Markets Asof06ͲMayͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP22.57 Ͳ1,4% +12,7% GEOROG05/17 102.19(YTM4.65%) +0,1% +0,8% GHG(GHGLN) GBP1.95 +0,3% +17,2% GEORG04/21 110.44(YTM4.49%) Ͳ0,2% +1,8% TBCBank(TBCBLI) US$10.50 Ͳ +5,0% GRAIL07/22 108.69(YTM6.04%) +0,6% +2,1% GEBGG07/17 104.31(YTM3.87%) +0,4% +0,5% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 45,83 Ͳ4,8% +15,0% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1293,22 Ͳ0,0% +5,8% GEL/USD 2,2050 Ͳ0,9% Ͳ3,7% GEL/EUR 2,5139 Ͳ1,3% Ͳ3,7% INDICES Price w/w m/m GEL/GBP 3,1851 Ͳ2,2% Ͳ1,5% FTSE100 6125,70 Ͳ1,9% Ͳ0,6% GEL/CHF 2,2773 Ͳ1,9% Ͳ5,2% FTSE250 16648,76 Ͳ0,9% Ͳ1,3% GEL/RUB 0,0336 Ͳ2,0% Ͳ0,6% DAX 9869,95 Ͳ1,7% +2,6% GEL/TRY 0,7541 Ͳ5,3% Ͳ6,4% DOWJONES 17636,50 Ͳ0,8% Ͳ0,4% GEL/AZN 1,4553 Ͳ1,6% Ͳ3,6% NASDAQ 4689,46 Ͳ1,8% Ͳ4,7% GEL/AMD 0,0046 Ͳ Ͳ2,1% MSCIEMEE 125,80 Ͳ4,1% +2,4% GEL/UAH 0,0876 Ͳ1,1% Ͳ0,7% MSCIEM 809,46 Ͳ3,7% +0,1% EUR/USD 0,8753 +0,2% Ͳ0,2% SP500 2044,34 Ͳ1,0% Ͳ1,1% GBP/USD 0,6922 +1,1% Ͳ2,2% MICEX 1901,56 Ͳ2,6% +2,2% CHF/USD 0,9694 +1,0% +1,4% MSCIFM 2465,18 Ͳ2,0% +1,7% RUB/USD 65,6974 +1,4% Ͳ2,9% GTIndex(GEL) 796,74 Ͳ Ͳ10,1% TRY/USD 2,9241 +4,6% +3,0% GTIndex(USD) 710,92 +0,8% Ͳ6,9% AZN/USD 1,5165 +1,1% Ͳ0,2% GEORGIA TODAY 2 BUSINESS MAY 10 - 12, 2016 EBRD to Invest 400 Million PM Announces Future State Business Programs and Their Social Benefi ts Euros in Georgia This Year a construction materials manufacturing plant in BY EKA KARSAULIDZE Khelvachauri, Adjara, while 200,000 GEL will be invested to construct an Askangel Alliance Com- pany factory that produces mineral products, in ew economic initiatives were one Guria. of the main topics at the Georgian The PM highlighted that in total 164 plants have Prime Minister’s recent meeting been created within the ‘Produce in Georgia’ pro- with the Government at which he gram. In total, these factories are worth more than announced the construction of three 400 million GEL, and employ 7,500 people. Nnew factories in the regions, container warehouse “It is extremely important that our citizens know buildings near the Black Sea and the start of a new about these kinds of programs as each of them is state program to support and fi nance Start-Ups. not only an impetus to our economy, but creates GEORGIA TODAY recently reported on PM new jobs,” said PM Kvirikashvili. Kvirikashvili’s new Start-Up funding program which The country’s leader also claimed that a new will be available for any citizen with an innovative, container warehouse which is going to be built exciting business proposal needing funding. The near Poti by local Iceberg Poti Company, would PM stated that, at the fi rst stage, the program’s add to the support of Georgia’s economy. The new budget will consist of 11 million GEL, and is expected container warehouse will receive an investment to increase to 35 million GEL. of 400,000 GEL, but the focus of the discussion PM Kvirikashvili actively encourages businesses was on the job aspect, with the PM stating that to get involved in government programs. In the each container shipped via Georgia meant more framework of the state program ‘Produce in Geor- jobs and better use of Georgia’s transit function. gia,’ the Government approved three projects and “The number of containers being shipped via said it would invest about 4 million GEL. Georgia is on the up and there is growing demand Continued from page 1 and stated that in the near future the EBRD will One of the projects will be a high-tech, modern for new logistics centers,” said the PM. “Georgia’s fi nance an initiative to introduce 60 new buses in livestock farming enterprise created in Martkopi transit potential is being increasingly utilized. The “We consider Georgia as the best country in terms Tbilisi which will run on compressed natural gas. village in Georgia’s Kvemo Kartli region. Local growth of transit shipments via Georgian territory of reforms, as well as introduction of international “We plan to invest more than EUR 400 million company Martkopis Baga will be responsible for implies there are more employed people in Geor- standards and accepting the EBRD mandate. Geor- Euros in Georgia - an unprecedented amount of implementing the project and around 2.5 million gia, since there is a close correlation between the gia has the best investment environment and a money,” said Balvanera. “This money could go to GEL will be invested. number of shipped containers and the great future and, to refl ect this, the investment that various sectors of the economy, like hydropower, More than 1 million GEL will be invested to build prosperity of small and medium-sized the Bank implemented here is one of the largest in banking, municipal infrastructure, and the private enterprises.” our portfolio of projects,” said Bruno Balvanera, sector. Overall, we are positive about the prospects Regional Director of EBRD in Caucasus, Moldova of Georgia's development and look forward to fur- and Belarus. ther successful cooperation.” Georgia’s Minister of Finance, Nodar Khaduri, The Regional Director of the EBRD also stated noted the importance of the assistance of the EBRD that this year is a jubilee not only for the Bank but in Georgia and the projects that have already been for the country as well as this year Georgia will and are going to be carried out. “The EBRD is the celebrate the 25th anniversary of its independence. largest and most reputable of investors in our coun- “This is a signifi cant date for Georgia, too, and we try,” the Minister said. “More than 2.6 billion Euros are very pleased that it has been a member of our was invested in the public and private sector, with big family for such a long time. As a result, we have a focus on the banking sector, energy and infra- been able to carry out a large number of projects, structure.” attract investments and develop the economy,” The Minister also highlighted the future projects Balvanera said. GEORGIA TODAY 4 BUSINESS MAY 10 - 12, 2016 Helping SMEs Set Sail: EIF Signs InnovFin Guarantee with ProCredit Bank the horizon, one needs to learn fi rst how to build BY KATIE RUTH DAVIES a good ship, and to learn from the successes and failures of others; to learn and share with others; join forces with others. ProCredit will be there to oday the European Investment Fund provide the soundest and most pragmatic advice (EIF) signed an InnovFin Guarantee to stretch the fi nancial prospects of SMEs in the with ProCredit Bank in Thessaloniki, most responsible way. But we don’t build the ship, Greece, with the aim of supporting our clients do. That’s what Pro-Credit is here to its fi nancing of SMEs throughout achieve in order to help the region to fully realize TGreece. Pier Luigi Gilibert, CEO of the EIF, spoke its potential.” openly of the ‘uncertain global prospects’ and In the six months of staff training at the new ‘important social challenges’ facing many countries Greek branch, ProCredit says it has met many a of the EU, causing most to turn increasingly to resilient local company. SMES and entrepreneurs as an important source “Only a resilient and focussed, not overly rich, of economic growth. business can withstand the vagaries of the fast- “Against this backdrop, appropriate access to changing climate,” said Kostadinov. “Northern fi nance is critical to enable these businesses to Greece has both successful and confi dent SMEs invest and create jobs,” Gilibert said. “The EIF, as and passionate business-people. Greece has sur- part of the European Investment Bank Group, is Dimitris Avramopoulos, European Commissioner; Pier Luigi Gilibert, CEO of the EIF, Rena Peicheva, vived the diffi culties of the past years and has not pleased to support the active engagement of Pro- ProCredit Bank EAD, Bulgaria; and Borislav Kostadinov, Member of the Management Board of ProCredit stopped dreaming.