Bank of Georgia Financial Analysis

BANK OF GEORGIA 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Turkey Armenia Georgia Belarus Lithuania Russia Hungary Estonia Bulgaria Croatia Expenditures (current + capital), GEL mn - Expenditures (current + capital) as % of GDP Government social expenditure as % of GDP 2015 ■2016E 2017E 2018F 2018 2019F 2020F INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON SOCIAL Expenditures: current vs. capital Budget expenditures Source: Ministry of Finance, GeoStat Source: Ministry of Finance 16,000 50% 100% 14,000 38.3% 34.0% 40% 80% 12,000 30.7% 30.6% 29.4% 30.3% 30.5% 31.0% 30.4% 30.0% 30.5% 30.0% 80.4% 80.0% 81.7% 76.0% 78.1% 80.0% 10,000 30% 60% 72.5% 73.4% 74.2% 73.1% 74.2% 72.6% 8,000 6,000 20% 40% 24.0% 27.5% 26.6% 25.8% 26.9% 25.8% 27.4% 19.6% 20.0% 21.9% 4,000 18.3% 20.0% 10% 20% 2,000 0 0% 0% Source: IME 8% 7% 6% 5% 4% 3% 2% 1% 0% Poland Armenia Turkey Croatia Russia Poland Lithuania 43 Estonia Bulgaria Georgia Hungary Belarus 2009 2010 2011 2012 2013 2014 Current Expenditures Capital Expenditures and net lending Government capital expenditure as % of GDP 2015 ■2016E 2017E 2018F Source: IMF 2015 2016 2017 2018 2019F 2020F

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