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Investor Presentaiton

FDIS and Donor assistance Liberal regulatory environment for foreign businesses, resulting in FDI averaging at 16% of GDP during past three years, with cumulative FDI (2004 -2009) in country reaching 60.5% of GDP as of YE 2009. Unequivocal support from the West and IFIs with total financial pledge through 2011 of US$4.5 bln (42% of 2009 GDP). Approximately one third of the package is earmarked for financial sector. By end of FY 2010, cumulative donor commitment to Georgia under the Brussels pledge will total circa US$4.2 billion, with possibility of further upward adjustment. As of YE 2009, US$ 1.4 billion was disbursed In addition: Approved access to US$1.2 bln under SBA by IMF until 2011 U.S. Committed US$ 124 mln investment in energy infrastructure development (February 2010) US$70 million from ADB for infrastructure repairs Net remittances US$ mln 1000 FX reserves 2,500 2,000 1,500 1,000 0.8 Fxreserves 0.8 0.8 1.1 1.0 1.3 FX/M2 1.8 1.7 18 1.5 1.6 US$ 2.11 bn US$0.93 bn US$1.48 bn US$0.49 bn US$ 1.36 bn 500 US$0.38 bn US$0.19 bn 1.4 1.2 US$ 2,20 bn 1.0 10 0.8 0.6 0.4 0.2 0.0 00 2003 2004 2005 2006 2007 2008 2009 Sep-10 FDI Inflows 9% 8.4% US$ mln 3,000 25.0% 900 800 700 5.4% 600 4.9% 4.2% 500 400 300 200 420.5 315.4 100 212.7 0 2004A 2005A 2006A Net remittances (LHS) Source: National Statistics Office of Georgia Labkon BANK OF GEORGIA www.bog.ge/ir 7.4% 7.2% 7.2% 8% 2,500 7% 6% 2,000 19.8% 20.0% 942.0 276.2 15.3% 15.0% 917.9 755.4 766.5 5% 1.500 950.0 4% 261.7 12.2% 1,092.6 10.0% 658.0 3% 1,000 7.0% 2,015.0 9.4% 1,564.0 7.7% 2% 160.3 500 176.7 1,190.0 6.1% 5.0% 870 1% 658.0 483.0 450.0 0% 0 0.0% 2007A 2008 A 2009 2010F 2004 2005 2006 2007 2008 2009 2010F -Net remittances as % of GDP (RHS) Net FDI Donor inflows Net FDI as % of GDP Source: Government of Georgia presentation November 2010 Page 13
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