VIII. Trade and Project Financing -- Brief description of banking system Banking policy in the country is developed by the NBG in coordination with the Georgian Parliament. The NBG was created in August 1991 as an entity with the functions typical of a Central Bank. At present, the banking system consists of the specialized banks of the former U.S.S.R. and about 150 private commercial banks. Specialized government commercial banks were formed from the specialized banks of the FSU in 1991. These banks are Eximbank of Georgia, Agroprombank of Georgia, Housing Bank of Georgia (Binsotzbanki), and the Bank for Industry and Construction (Mretzmahenbanki). In early 1994, the State Savings Bank (Sberbanki) was transformed into the Share-Savings Commercial Bank. This system is the core of the Georgian banking system. Private commercial banks are new participants in the Georgian financial system. They started their operations in 1989, when the FSU began to liberalize its financial system. The activities of these banks are regulated by banking laws issued between 1991 and 1993: "On the National Bank of the Republic of Georgia," "On Monetary and Credit Regulations in the Republic of Georgia," "On Banks and Banking Activities in the Republic of Georgia," and "Georgia Banking Regulation Governing the Opening of Foreign Company Accounts in the Local Interim Currency". Twenty-nine Georgian state and commercial banks operate under General Licenses that allow them to carry out international transactions and currency exchange operations. However, not all of them are actually involved in international transactions. -- Foreign Exchange Controls Affecting Trading According to a decree of March 5, 1992, all resident individuals and enterprises are allowed to buy and sell foreign exchange freely at authorized banks and offices. There are no limitations on the operation of these accounts. Foreign exchange can be held in bank notes or on deposit in designated bank accounts. In principle, foreign currency can be purchased by residents to conduct current international transactions. Two banks that are able to handle electronic transfers from the United States and disburse money are the NBG (fee 1 percent) and the Iberiabanki (fee 3 percent), plus transfer charge. Under the banking law, enacted in August 1991, the NBG is responsible for exchange rate policy and the formulation of exchange system regulations and their application. However, requirements regarding the surrender of hard currency are formulated in conjunction with the Ministry of Finance. -- List of banks with correspondent U.S. Banking arrangements: National Bank of Georgia - Nodar Javakhishvili, President, 3/5 Leonidze St, 380027 Tbilisi. Tel: (708832)99-65-05; Fax: (7- 8832)99-98-85; Telex: 212952 LEGAL SU; - Merab Kakulia, Chief, Hard Currency Department. Tel: (7-8832)93-21-03, (7-8832)98-19-38; Fax: (7- 8832)99-98-85; Telex: 212952 LEGAL SU Universal Joint-Stock Bank "Iberiabanki" - Tedo Teneihvili, President, 1 Brosse St, 380074, Tbilisi. Tel: (7-8832)98-70-50, (7-8832)98-80-90, (7-8832)98-51-06; Fax: (7-8832)98-70-50; Satfax: 4316029690-5-168; Telex: 212993 JSUB Joint-Stock Commercial Bank "Ivertbanki" - Otar Tokhadze, President, 18 Iashvili St, 380008 Tbilisi. Tel: (7-8832)98-35- 08, (7-8832)99-67-01; Fax: (7-8832)99-52-40, Satfax: 49-5151- 13057 ext 177; Telex: 212996 IVBT SU Joint-Stock Commercial Bank "Caucasian Bank" - Amiran Cadagishvili, President, 72 Vazha Pshavela Ave, 380062 Tbilisi. Tel: (7-8832)30-44-85, (7-8832)30-47-58 Commercial Bank "Gulani" - Georgi Kikalishvili, President, 4 Liberty Sq, 380027 Tbilisi. Tel: (7-8832)98-86-18, (7-8832)98- 86-19, (7-8832)98-86-26; Fax: (7-8832)98-86-26; Telex: 212113 State Commercial bank "Industriabanki" - Tamaz Maghlakelidze, President, 14 Jorjiashvili St, 380026 Tbilisi. Tel: (7-8832)99- 98-29, (7-8832)93-15-96; Fax: (7-8832)99-98-42; Telex: 212391 KHOMLISI (Provides transactions through Germany) State Commercial Bank Eximbank - Emzar Jgerenaia, Manager, 5 Chorokhi St, 380002 Tbilisi. Tel: (7-8832)98-88-47; Fax: (7- 8832)99-93-94; Telex: 212244 AISI SU Commercial Bank Capitalbank - Levan Eliauri Manager (acting), 62 Chavchavadze Ave, 380062 Tbilisi. Tel: (7-8832)22-22-27, (7- 8832)29-47-59; Fax: (7-8832)29-46-59; Telex:212149 BIRJA SU (provides transactions through Moscow)