GBW: Fitch Ratings, the international rating agency, has upgraded Georgia’s credit rating and forecast the 2010 GDP growth rate to record 6 percent. Do you think we should genuinely expect to see such a rise in this year?

--This is definitely realistic. The agency has named concrete figures and this forecast is meant to be based on preliminary research.

GBW: The Wall Street Journal has called the economic reforms in Georgia as example for even Great Britain. What is the significance of this pronouncement?

--This is a very good assessment, even more so it is made by such an influential newspaper. Consequently, the statement signifies the economic reforms in Georgia have already brought perceptible results and drawn the attention of foreign experts. The positive side of the reforms should be discussed at full scale. The economic liberalization is a positive momentum in itself and the economic growth rate the country had geared up before 2008 was driven by this reform. It is not expedient to be confined with only one field. The matter is complex. Indeed, economic reforms traditionally comprise negative trends too. Excess state deregulation may be not very desirable, but all of us has witnessed the country as it was developing. The Russian aggression in August 2008 and subsequent global economic crisis have negatively impacted our economy. I would like to stress not only reform, but also many other factors contribute to the economic advancement. Pole reform is a good example of this in Georgia, as it has been a success from both an administrative and economic point of view. We meet many foreign partners noting on arrival they deal with the border and customs regulations, meet policemen at the airport and they see it is very simple and easy to enter the country without any problems. The educational reforms are of crucial importance too. Bribery has been eradicated in higher education and this a huge step forward contrary to our neighboring countries. This momentum may have no direct relation with the national economy, but it makes very serious effects on the country's development. It is a great breakthrough for those needing to be licensed, permitted pr going through customs clearance; regulations have been eased.

GBW: Georgia has lost several positions in the index of economic freedom, as the index authors note the state sector interference in the business sector activities has increased. Do you agree with this statement?

– I have not gone into these indicators. I would only note any negatives in the index have been brought by the grave year of 2008, the global economic crisis and collapse of investment.

GBW: You note that Georgian businesses are not ready to penetrate European markets. What do you think are the main obstacles?

–One simple thing affects the process. Our businessmen need to produce competitive goods that are in demand on the European market. Yet we are unable to replace imported products on the domestic market. The rise in exports notwithstanding. For instance, the ratio of the winemaking sector, which more or less shows perceptible results, in Georgia’s total exports is very small. At the same time, should be we confined with only the winemaking sector? We have huge potential in the agriculture and industry sectors too. Today export volume is very limited. For instance, Georgia's citrus is exported to only Ukraine and Belarus. The sector's advancement does not depend only on reform in this case. Investments, new technologies and comparatively cheaper financial resources are required to implement these projects. According to my information, a lot of detailed proposals has been submitted to the Agriculture Ministry for various sectors. Unfortunately, current investment inflows cannot meet the demand in Georgia. We have to perform huge jobs to draw investments. Investors are interested in concrete projects and make investments in the fields they have gained experience. I believe this problem has sharpened by the economic crisis. However, the situation is being changed stage by stage and it will be improved in the near future. I would like to note this problem is not relevant in only Georgia. Downturn in investing volume is seen in the world over.

GBW: Tour representative has become a member of the Georgian Finance Ministry Board of Appeals. What has been the effect of this move?

–We provide close cooperation with the board as it is the last instance before a case is handed over to the courts. The Finance Ministry's board of appeals is a very good institution for settling disputes and the Chamber of Commerce and Industry of Georgia has been providing intense work in this respect. We aim to promote the business sector, but within the legislation, as if a businessman has committed a crime, he or she cannot escape the responsibility.

GBW: During the last period the Chamber of Commerce and Industry of Georgia showed less diligence to hold business forums you have organized many times previously. What is the reason behind this inactivity?

–The main reason is the chamber's resources have shrunk. We used to organize ten or more business forums a year in Georgia and abroad. Indeed, financial resources are required to organize business forums and the chamber received funding from these events. The organizing financial resources were basically collected thanks to subsidies and minimum contributions from companies. Our finances have shrunk after the Chamber of Commerce and Industry ceased issuing certificates of a country of origin, which was the basic source of revenues previously. This practice is applied by many chambers all over the world, not only by our chamber. I would like to say we will resume issuing the certificates of countries of origin starting June 1. Hence, I expect the chamber to increase its proceeds and to restore its good tradition.

GBW: The Chamber of Commerce and Industry of Georgia has referred its representatives to various countries. How has the decision effected the chamber operation and which are the next countries you plan to refer to your new representatives to?

–Many chambers of commerce and industry in the world maintain representatives in other countries. We follow the same practice, but not on the same scale. For the last two months we have added our representatives to several other countries after we signed a memorandum with the Georgian State Ministry for Diaspora Issues. Under the memorandum, the ministry will put forward experienced candidates from the business sector in concrete regions and countries, where our diaspora live. We are authorized to select our desirable persons from the named candidates. This is a good opportunity to establish relations with business circles in foreign countries, authorities and various associations to draw their interest towards the Georgia’s potential and our business proposals. At this stage, we have referred our representatives to over 20 countries. Moreover, we have representatives in even several cities of this or that major country. We plan to appoint our representatives in the U.S., Span and Germany in the near future.

GBW: The Georgian banking sector remains reluctant to increase corporate lending. What is your plan to change this?

–It is difficult to condemn commercial banks. They follow their own regulations and terms. They issue loans on the ground of business plans taking into account the business perspectives. Our problem is high interests on loan. This circumstance hinders the business development in Georgia. Today it is the reality that almost all banks offer the same terms. To change this situation, commercial banks should offer more favorable terms and they should have cheaper lending terms. As a result, commercial banks will be able to lower loan interest rates. Unfortunately, this tendency has not emerged yet.

GBW: The Georgian government expects investment inflows to record approximately 1 billion USD in 2010. Do you consider this forecast to be realistic?

–This is quite realistic. The ongoing projects in Batumi in Adjara is proof to this. The region has already started construction on hotels and infrastructure projects. And this is only one of the regions of our country. Tbilisi is also showing development activity. Despite the grave situation in the housing sector, several companies keep on implementing their projects. As to investments of 1 billion USD, this sum should not be taken as very much money to be very difficult to draw.