The messenger logo

Business Roundup

Prepared by Christina Tashkevich
Friday, May 2
Banks’ assets grow in Georgia

By April 1 net total assets of Georgian commercial banks grew 12.2 percent compared to the beginning of the year—an increase of GEL 877 million to a total of GEL 8 billion—the National Bank of Georgia reported.

Starting from the beginning of the year, the banking sector’s equity capital has also grown by GEL 282 million to reach GEL 1.7 billion. The number of foreign-controlled banks has increased from 12 to 14.

From January–March commercial banks’ net profit equalled GEL 42.3 million, 66.3 percent higher than for the same period of last year.



Wissol offers discount system for Pirveli cardholders

From May 1, Georgian petroleum company Wissol is operating a renewed discount system for holders of the Pirveli Card, a cumulative discount card for retail customers.

Cardholders are eligible for a three percent discount on fuel purchased this month. How much cardholders can save in future depends on how much fuel they have purchased during the previous month.

“Loyalty schemes are common and well-known abroad and are considered good encouragement to our most valued customers. We had studied all cases and products offered on the Georgian market and in neighboring countries and did our best to develop a scheme reflecting the interests and habits of our customers,” commented Jgamadze, who heads the Plastic Card and IT Department at Wissol.



Economy minister visits new enterprises

Veneer manufacturer Alioni 21 is the latest company to qualify for a loan from the government’s cheap loan program.

Located in the village Dzegvi, Mtskheta region, the company will receive USD 340 000 to help it increase its output. The company is already selling its products on the Georgian, Armenian and Azerbaijani markets.

“Our main goal is to create jobs and encourage local production. By giving the loan one more company will be able to purchase equipment and increase production volume, which will see 130 more jobs open at the factory,” Economic Development Minister Eka Sharashidze said.

The company will purchase equipment for lamination and manufacture laminated tiles.



Government launches new investment program in energy sector

The Energy Ministry announced on May 1 that the government has approved a number of Greenfield hydro power plant projects.

A list of prospective Greenfield HPP sites has been published by the Energy Ministry on its website (www.minenergy.gov.ge). The list comprises 87 sites, with the prospective capacity ranging from 5 MW to 60 MW.

Parties interested in investing in the project are required to submit an application to the ministry. The winner must submit a bank guarantee of USD 170 000 per MW of prospective capacity before signing a memorandum to undertake the project.

The investor will be free to sell the electricity generated by the HPP either domestically or abroad without any restrictions, except for a three-month period during the winter season, October 1–April 1, during which electricity may only be sold domestically.