Sarke: newsletter of 22 December 2008

Today news:

GOVERNMENT SUFFERED STUFF CHANGES

According to the information spread by the press-service of the State Office, Georgian Prime Minister Grigol Mgaloblishvili made stuff changes in the Government.

Namely, Vakhtang Lezhava is appointed the chief advisor of the Premiere and the head of advisors’ group.

PRIVATIZATION INVESTMENTS MADE UP $3.17M IN JULY-SEPTEMBER

As Georgian Statistics Department reports, only $3.17 million was invested through privatization in July-September 2008, i.e. 2.1% of total investments made in the 3rd quarter ($150.02 million).

This rate is 63.3 times reduced compared with the 2nd quarter of 2008 and 17 times reduced compared with the same period of 2007.

EBRD, IFC AND FMO TO ALLOT $171M TO TBC BANK

As European Bank for Reconstruction and Development (EBRD) informs, EBRD along with the International Financial Corporation (IFC) and Netherlands Development Financial Company (FMO), discuss the issue of allotment of $171 million credit line to TBC Bank.

Out of which, financing of EBRD will make up $75 million.

UKRAINIAN PRIVATEBANK INVESTED $225M IN GEORGIAN BANK DEVELOPMENT

After Ukrainian PrivateBank acquired shares of TaoPrivateBank, $225 million was invested in Georgian bank’s development, told Sarke TaoPrivateBank.

To remind, the Ukrainian bank became the owner of 75% shares of Georgian TaoBank (then TaoPrivateBank) in the first half of 2007.

SAKARTVELOS BANKI CEASED OFFERING OF THE INVESTMENT DEPOSIT

Sakartvelos Banki (Bank of Georgia) explains ceasing of offering of the Investment Deposit with the fact that the volume of these deposits became equal to the quota of deposits re-insured in advance. Sakartvelos Banki re-insured the product in BNP Paribas.

As it became known to Sarke, volume of the Investment Deposit made up nearly $6 million. Minimal sum for Investment Deposit opening is $5,000, its duration – 6 months.

FITCH RATINGS DOWNGRADED INDIVIDUAL CREDIT RATING OF BTA BANK GEORGIA AND AFFIRMED THE RATE OF PROCREDIT BANK

As JSC Galt&Taggart Securities informs, Fitch Ratings downgraded individual credit rating to BTA Bank Georgia from D/E to E.

The mentioned downgrade reveals the view of Fitch, which is revealed by weak funding profile of the bank and deteriorated assets quality.

NEW AGREEMENT TO BE SIGNED WITH COMPANIES, WHICH ARE IN THE LISTING OF GEORGIAN STOCK EXCHANGE

As Georgian Stock Exchange reports, such issuers as Sakartvelos Banki (Bank of Georgia), Teliani Valley, Liberty Consumer, Caucasus Energy&Infrastructure already expressed wish to conclude necessary agreements to access the listing.

As Tamaz Khizanishvili, Director of Admission to Trades on the Stock Exchange told Sarke, the listing already includes the shares of these companies and a new signing is necessary to get tax privileges.

2.5% SHARE OF GEOCELL TO BE SOLD AT $7M

As press service of Georgian Economic Development Ministry announced today, agreement on selling 2.5% state share of Georgian mobile communications operator Geocell will be signed these days. The share will be sold at $7 million, the press service notes.

As the press-service informs, the share will be purchased not by the owner of the control pack – TeliaSonera, but by a physical person Osman Turan (director general of Geocell).

FROM 1997, MAGTI TRANSFERRED 700M LARI TO THE BUDGET

Mobile communications company Magti informs that it transferred 700 million lari to the Georgian budget from the day of its establishment up to the present. The company does not specify the volume of transfers made in 2008.

Magti started functioning on September 22, 1997. It serves 1.9 million clients today.

10,000 NUMBERS OF 13XXXX INDEX ARE AUCTIONED

Georgian Communications Commission announced the next auction on getting the numeration resource license.

10,000 numbers of 13XXXX index in Tbilisi are brought to auction. Starting price of the resource makes up 20,000 lari.

JSC CLEARSTREAM GEORGIA IS WITHDRAWN LICENSE BECAUSE OF NONPAYMENT

Georgian Communications Commission announced about the failure of the auction on getting the license in 3.5GHz diapason (is used while laying WiMAX nets).

ClearStream Georgia expressed readiness to pay 9.3 million lari in 3.5 GHz diapason license auctioned on October 31 (.3497.5-3504.5 MHz and 3597.5-3604.5 MHz pair frequency lines). Starting price of the license made up 1.86 million lari.

THE THIRD AUCTION ON LLC BATUMI TENNIS CLUB AGAIN FAILED

The auction on the property of LLC Batumi Tennis Club (hotel, courts, and café-bar) failed because of applications absence. The object was auctioned for the third time and its starting price made up 7.5 million lari.

As Dimitri Bliadze, bankruptcy manager of Batumi Tennis Club announced, the next auction will probably be announced by January 19. According to him, the property will be auctioned with a reduced price on the fourth auction – 6.3 million lari.

ENERGOPRO GEORGIA TO INVEST $7M IN ORTACHALHES 2007 REHABILITATION

As EnergoPro Georgia informs, it is planned to invest $7 million in rehabilitation of OrtachalHES 2007 (Ortachala hydroelectric station) during the next 6 years.

At the auction, held on December 19 in Georgian Economic Development Ministry, the company paid $25.25 million in OrtachalHES 2007. Starting price made up $25 million.

LLC GEORGIA-ECO TO OFFER FOUR TYPES OF YOGHURT LLC Georgia-Eco (dairy producer, Eco-Food trademark) informs that it started production of yoghurt from December. The company offered its clients strawberry yoghurts current year, it will also offer three types of yoghurt from the beginning of 2009 – peach, raspberry and berry.

As marketing manager of Georgia-Eco Shalva Alavidze told Sarke, nearly 200,000 lari was spent in production of one name of yoghurt. Total volume of investments and production volume are not named at this state.

LIMESTONE LICENSE IN MARNEULI WAS SOLD AT 250,703 LARI

Georgian Economic Development Ministry reports that out of the mining licenses, limestone (containing marble) license was sold at the highest price– 250,703 lari. Starting price of the license made up 227,912 lari.

The license was purchased by the physical person David Kurtskhalia.

For further information:

Sarke