April Issues (Eng)

BANKING NEWS
We would like to let you know that, as of April 4, the deposit standard interest rate has changesd.
For the detailed information please contact your private banker.
Address: 29A Gagarini str.
Tel.: 2 444 333
Thank you for being our valued customer.
ECONOMIC DIGEST
NBG reduces its policy rate by 25 basis points to 4.5%.
The Monetary Policy Committee (MPC) of the National Bank of Georgia (NBG) met on March 27, 2013 and decided to reduce the refinancing rate by 25 basis points to 4.5 percent.
According to existing information, the inflation forecasts for the coming 4-6 quarters have gone further down
since the previous meeting of the MPC. According to the current forecasts, it is expected that the headline CPI
inflation will remain below its target level throughout this year and will approach it in the second half of 2014.
Both headline and core inflation were low in February, with the headline annual inflation reaching -2.1%.
Negative values of inflation were mainly caused by the decrease in food prices. The base effect and the reduction
in regulated prices (electric power and garbage collection services) were important as well. The economy grew
by 2.8 percent in the fourth quarter of 2012 indicating the weakening in the economic activity at the end of the
year. Decline in aggregate demand pushes the price level downwards. Decrease in import growth rates in January and February is another indication of slowdown in domestic demand.
In February and March the credit activity still remains weak in the country due to the low demand for loans, leading to the slowdown in aggregate demand. Low credit activity also weakens the interest rate channel of the
monetary transmission.
Given that the inflation is predicted to remain below the target in the medium term, the National Bank of Georgia
decided to continue monetary easing and to reduce the Monetary Policy Rate. The NBG will continue to monitor
the developments in the economy and financial markets and will act accordingly.
The next meeting of the Monetary Policy Committee will be held on May 8, 2013.
Business Sector of Georgia
In the fourth quarter of 2012, turn-over of business sector of Georgia constituted 10 969,8 million GEL.
According to the information of the National Statistics Office of Georgia, production value of business sector reached 5 844,9
million GEL.
Tbilisi is the leader in the terms of distribution of production value of Georgian business sector with the 65%, then follows Kvemo
Kartli (9,4%), Autonomous Republic of Ajara (7,1%), Imereti (5,2%), Samegrelo-Zemo Svaneti (3,3%), Shida Kartli (3,3%), Kakheti
(2,9%) etc.
In the mention period, consumption of goods and services by enterprises rose by 44% and equaled to 8 506,1 million GEL.
In the fourth quarter of 2012, compared to the same period of 2011, average monthly remuneration of employed persons constituted 832,0 GEL.
In the same period number of persons employed in the enterprises in Georgia rose by 45% and equaled to 527 828.
www.geostat.ge
Foreign Direct Investments
According to the preliminary data of the National Statistics Office of Georgia, in the fourth quarter of 2012, Foreign
Direct In-vestment (FDI) in Georgia amounted to 181 million US dollars. In the twelve month of 2012, FDI in Georgia
equaled to 865,2 million US dollars
Netherlands is leader country by FDI in Georgia, which made the investment in amount of 61,6 million USD in the fourth quarter
of 2012.
The biggest countries by FDI in Georgia are as follows:
Netherlands – 34% of total FDI (61,6 million USD);
Azerbaijan – 19% of total FDI (34,2 mil-lion USD);
China – 7,6% (13,7 million USD);
Cyprus – 7,0% (12,7 million USD);
United Kingdom – 6,9% (12,4 million USD);
Turkey – 6,3% (11,3 million USD);
Switzerland – 5,5% (10,0 million USD);
France – 3,5% (6,6 million USD) etc.
The largest share – 32,1% of total FDI (58,1 million USD) falls on Manufacturing. Breakdown of FDI, by other major economic
sectors in the third quarter of 2012 is following:
Manufacturing (32,1% of FDI, 58,1 mil-lion USD);
Energy sector (21% of FDI, 38 million USD);
Financial sector (15,7% of FDI, 28,3 million USD);
Transports and communications (11,2% of FDI, 20,3 million USD);
Real estate (7,7% of FDI, 13,9 million USD);
Health and social work (7,0% of FDI, 12,7 million USD) etc.
Survey on External Economic Activities of Enterprises is the leading by the FDI Information Sources, in quarter IV of 2012, which
constituted 71,3% of total investments, than follows financial sector (27,9%) and privatization (0,8%).
www.geostat.ge
Gross Domestic Product of Georgia
According the preliminary data of National Statistics Office of Georgia, Gross Domestic Product (GDP)
of Georgia at current prices amounted to 26 138,9 million GEL (15 829,7 million USD) in 2012 and the
GDP real growth equaled to 6,1 percent.
In 2012, Gross Domestic Product (GDP) per capita at current prices amounted to 5 811,7 GEL (3 519,6 USD). The largest
shares of GDP by activity are held by Industry (17,2%), Trade services (16,6%), followed by Public administration (11,2%),
Transport and communication services (10,6%), Agriculture, hunting and forestry, fishing (8,4%), Construction (7,3%),
Health and social work (6,0 percent) etc. Significant real growth was posted in the following activities: Manufacturing
(16,4%), Financial intermediation (15,0%), Hotels and restaurants (11,8%), Construction (11,4%), Communication (9,6%),
Other community, social and personal services (8,2%).
Moderate real growth was recorded in Trade (7,3%), Transport (5,9%), Real estate, renting and business activities (4,2%),
Public administration (3,2%), Education (2,4%), Mining and quarrying (2%).
Compared to 2011 year the total output of production in tourism related services recorded a 287,8 million GEL growth
and constituted 2 728,4 million GEL in 2012. Restaurant services and other serving of food and beverages have the
biggest share (32,6%) in the total output of production in tourism related services, then follows other land transportation
services; water transport services (30,3%, exclude railway transportation and air transport services), Travel agency and
tour operator services; tourist assistance services (18,8%) etc. During the same period, Output of agricultural products
increased by 2,5%, in which the biggest share – 59% have live animals and animal products.
www.geostat.ge
Banking Sector in Georgia
In February 2013, the banking sector finished with profit. The net profit constituted 29,2 million GEL.
The share of five banks having the largest assets within the total amount of the banking sector assets constituted 79,8
percent.
As March 1, 2013, the banking sector in Georgia is represented by 20 commercial banks, including 15 foreign-controlled
banks and three branches of non-resident banks. Compared with the previous month, total assets of Georgian commercial banks (in current prices) increased by 0,1 percent (17,9 million GEL) and constituted 14,2 billion GEL. The banking
sector's own funds (equity capital) equal to 2,5 billion GEL, which makes up 17,6 percent of commercial banks' total
assets.
The share of foreign capital in banks' total paid-in capital constituted 74,5 percent.
www.nbg.ge
Current Tendencies Of Bank Deposits
Total volume of the non-bank deposits in the country's banking sector increased by 2,9 percent (225,9 million GEL) compared with the February 1, 2013, and reached 7,9 billion GEL by March 1.
In February, 2013, compared to previous month, the volume of demand deposits increased by 2,8 percent (91,2 million
GEL) and term deposits - by 3,1 percent (134,6 million GEL).
The dollarization ratio of the total non-bank deposits constituted 66,7 percent by March 1. It decreased by 0,48 percentage points compared to February 1, 2013.
The annual average weighted interest rate on term deposits constituted 8,4 percent. In particular, the interest rate for
national currency denominated deposits was 11,1 percent and the interest rate for foreign currency denominated deposits 7,7 percent.
The share of US dollar in the total volume of foreign currency denominated deposits equals to 80,4 percent and the share
of Euro equals to 17,3 percent.
GEORGIAN NEWS
Georgia’s 4Q12 preliminary FDI down 47% y/y
Georgia’s 4Q12 FDI decreased 47% y/y to US$ 181mn according to GeoStat’s preliminary figures. The manufacturing sector was
the largest FDI recipient with 32% of net inflows, followed by the energy sector at around 21% and transports and communications sector (11%). Netherlands topped the list of investors with US$ 61mn (34% of net inflows), with Azerbaijan coming second
at roughly US$ 34mn (19% of net inflows).
Georgia’s money transfer inflows grew by 8% y/y in February
Total money transfers in February grew 10% y/y to US$ 114mn, as foreign workers sent US$ 104mn in remittances back to Georgia (up 8% y/y). Russia accounted for around 52% of total foreign money transfers in February followed by Greece (13%) and Italy
(8%).
2M13 merchandise trade deficit decreased by 18% y/y
Georgia’s 2M13 foreign trade exports were up by 17% y/y to US$ 358mn, while imports decreased by 8% y/y to US$ 975mn,
narrowing the foreign trade deficit by 18% y/y to US$ 617mn. Azerbaijan accounted for the largest share of Georgia’s exports
(24%), followed by Armenia (12%) and the U.S. (12%). On the import side, trade was dominated by flows from Turkey (17%), Azerbaijan (10%) and Ukraine (8%).
Georgia’s 4Q12 C/A deficit narrows 34% y/y
Georgia’s 4Q12 C/A deficit narrowed 34% y/y to US$ 351mn as the merchandise trade deficit increased only 3% y/y to US$ 1.1bn.
The services trade surplus increased 72% y/y totalling US$ 303mn, while the capital and financial account balance declined to
US$ 369mn mainly due to sharp decrease of FDI. Overall, the country’s external financing balance stood at a positive US$ 18mn
in 4Q12.
SPECIAL OFFERS
Restaurant Oval
Visit restaurant Oval, taste most delicious dishes in a pleasant atmosphere and enjoy a 10% discount.
The offer is valid till 2013, 31 December
Address.: Tbilisi, N6 Rkinis Rigi str.
Tel.: 2 43 89 50
Al Faro
You can enjoy a huge discount at the great restaurant
Restaurant "Al Faro" offers a 10% discount to Visa Infinite cardholders.
Offer is valid till 31 December 2013.
The atmosphere of cordiality and hospitality reigns in "Al Faro"
restaurant. Sometimes it's noisy and sometimes quiet, but always
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Italian cuisine is delicious, refined, but also very simple with dishes
from different Italian regions. In summer you can enjoy long and
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all of it is united in one place - trattoria Al Faro!
How to take up this offer
To redeem this offer inform the cashier that you are a Visa premium cardholder and pay with your card.
The offer can be redeemed at the following locations:
- Adress: 49a Velyka Vasylkivska str., Kyiv
- Every Day: 10:00 – 23:00
- Tel.: +38 044 503 50 91
1st Fashion Boutique
For the Visa Infinite cardholders 15% discount is valid for the
whole assortment of clothing, footwear and accessories. Discount
is valid for all goods not participating in seasonal sales and sales
promotions. The offer is valid till December 31, 2013 inclusively.
Boutique 1st Fashion presents footwear, clothing and accessories
of such famous trademarks as Ferre, Giorgio Fabiani, Giovanni
Fabiani, Marino Fabiani, Kenzo, Etro, Galliano, Roberto Cavalli,
C.N.C, Versace, Century, Sebastian, Missoni, Sonia Rykiel, Vicini
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Exclusive furs of Gulyaev are also presented. This is a true highlight of our collection. For the fans of overclothes from Italian producers we have a wide range of fur coats, manteaus and overcoats
and camisoles.
How to take up this offer
To enjoy the discount program, please, identify yourself as a holder of a Visa Gold, a Visa Platinum or a
Visa Infinite card and use it for payment.
The offer can be redeemed at the following locations:
- Adress: Almaty, Republic square, 2, 2nd floor, boutique 3
- Working Hours10.00 – 22.00
- Tel.: +7 707 021 63 39
- e-mail: iradazn@mail.ru
Terms and Conditions
All Visa Infinite cardholders can take advantage of this offer. In order to use the offer just show the card Visa Infinite and use it to pay
for the goods. Discount for the Visa Infinite cards holders is 15%. The offer is not valid during seasonal sales and sales promotions, as
well as in respect of goods, displayed in saloons with a discount. The offer is valid from January 01 till December 31, 2013 inclusively.
Fauchon
Save 10% to 15% at Fauchon Paris
Save 10% on purchases of €100 or more and 15% on purchases
of €150 or more in Fauchon Paris
Fauchon is a temple of French gastronomy with savory products,
wines and spirits. Fauchon is the original gourmet grocer with
locations in 33 countries around the world. Within the store's stunning interior designs, enveloping you in Fauchon's signature pinic
and black motif you'll find over 4,500 items available. Cakes and
chocolates to macaroons and other sweets, you'll be captivated by
the wide selection.
How to take up this offer
To redeem, present your Official Visa Global Merchant Offer Program Participant offer at time of purchase.
Terms and Conditions
Offer not valid for residents of Austria, Belgium, Switzerland, and Venezuela. Offer valid through December 31, 2013. Not valid on sale items.
Valid at: Fauchon Paris, 24-26 and 30 Place de la Madeleine 75008 Paris, France. Void where prohibited or restricted by law. Offer valid only
when you pay with your Visa card. Any taxes are the sole responsibility of the purchaser.
Hyatt Hotels
Enjoy exclusive benefits at participating Hyatt Hotels in United
Arab Emirates, Kingdom of Saudi Arabia and Oman.
Your Visa Infinite card offers you exclusive privileges at the participating luxurious Hyatt Hotels in United Arab Emirates, Kingdom of
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Experience true, authentic hospitality with Hyatt.
Participating properties:
• Hyatt Capital Gate, Abu Dhabi, United Arab Emirates
• Park Hyatt Dubai, Dubai, United Arab Emirates
• Grand Hyatt Dubai, Dubai, United Arab Emirates
• Grand Hyatt Muscat, Muscat, Oman
• Park Hyatt Jeddah Marina, Club & Spa, Kingdom of Saudi Arabia
How to take up this offer
For reservations, visit www.hyatt.com and enter the special offer code 'VSINF'. Please identify yourself as a Visa
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Banyan Tree Spa Bangko
k25% savings on massages and packages
Enjoy 25% savings on body massages and spa packages, except
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How to take up this offer
To redeem, present this Official Visa Global Merchant Offer Program Participant offer at time of reservation.
Terms and Conditions
Offer not valid for residents of Austria, Spain and Venezuela. Offer valid through December 31, 2013.
Not valid on Beauty and Facial Treatments (such as Banyan Hand, Banyan Foot Essential, Banyan Hand & Banyan Foot Royale, Waxing and
all Hair treatments).
Not valid on the following dates: 1-7 January 2013 & 22 -31 December 2013.
Not valid on Visa-branded cards issued in Thailand.
Reservations required.
Valid at: Banyan Tree Spa Bangkok, 21/100 Thai Wah Tower II, 22nd Floor South Sathorn Road, Bangkok 10120, Thailand. Void where
prohibited or restricted by law. Offer valid only when you pay with your Visa card. Any taxes are the sole responsibility of the purchaser.
Infiniti
Special offer for Visa Infinite cardholders!
Visa Infinite cardholders – get your President Card with 5-20%
discount on car servicing, spare parts and accessories.
The offer is valid to 31 December 2013.
You can check out Infiniti model range and purchase the luxury car
in the official showroom "ViDi Liberty" which is located in the heart
of the city. Its goal is to provide a privileged services for Infiniti
guests – from the first visit to the dealership and throughout the
car servicing.
"ViDi Liberty" showroom is a part of "ViDi AutoCity" – the first and
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How to take up this offer
To redeem this offer inform the cashier that you are a Visa premium cardholder and pay with your card.
The offer can be redeemed at the following locations:
- Address: 5, Velyka Vasylkivska str., Kyiv
- Tel.: +38 044 392 77 00
- e-mail: sales@infiniti-vidi.com
Terms and Conditions
Offer valid 01 January 2013 through 31 December 2013, subject to availability.
Void where prohibited, taxed or restricted by law. Purchaser must pay any applicable taxes and fees. Offer redemption and fulfillment is
solely the responsibility of the merchant making the offer. Provider of the program reserves the right to modify or cancel any or all of these
offers at any time and without notice.