Q3 2009 Results Overview

Georgia's Economy: An Open Window on Opportunity Georgia has a good opportunity to solidify its liberal economic system and embark on increasingly rapid, long-term sustainable growth War and global crisis brought growth to a sharp halt in 2008, but the episode looks past War and the ensuing domestic political crisis look to have passed Saakashvili and government are again focusing on their domestic agenda International aid package of $4.5bn over 3 years (12% of GDP pa) helped stabilize the economy - and see it through the concurrent global financial crisis The IFI financing (into 2011) matches the political cycle to offer a wide window - Presidential elections due in Jan 2013, parliamentary in 2012. Saakashvili cannot run again The key economic challenge? To fund and grow out of the big 12% of GDP CA deficit Need to secure sustained strong FDI to fund deficit and finance investment Grow exports Manage inflows and build on the already sizeable fx reserve cushion Will she succeed? The opportunity is clear: Strong EM outlook with low rates The chance of 3 years of political stability A remarkably liberal tax & legal framework A strategic position in a neighborhood full of opportunity as well as risk - Turkey, Black Sea & Central Asia balance Russian risk Lobko BANK OF GEORGIA www.bog.ge/ir January 2010 Page 7

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