Georgia National Public Opinion Survey on Remittances

July, 2007

1 percentage pointMargin of error

GeorgianLanguages of interviews

January 3 – 28, 2007Dates of interviews

5,005 Georgian adultsSample size

Methodology

51

Demographics of Georgia Remittance Recipients

52

16%

14%

29%

17%

24%

17%

20%

28%

20%

14%

0% 10% 20% 30% 40%

65 +

50-64

35-49

25-34

18-24

Adultpopulation*

Remittancerecipients

*Georgian Department of Statistics

Age

53

55%

54%

45%

46%

0% 20% 40% 60%

Remittancerecipients

Adultpopulation Male

Female

Gender

54

4%

9%

41%

25%

4%

7%

10%

31%

37%

18%

0% 10% 20% 30% 40% 50%

More than 600 lari

400 to 600 lari

250 to 400 lari

100 to 250 lari

Less than 100 lari

Adultpopulation

Remittancerecipients

Official exchange rate is US$1.71 to 1 lari, National Bank of Georgia

Monthly Household Income

55

37%

27%

31%

5%

32%

28%

31%

9%

0% 10% 20% 30% 40%

University graduate or more

Some university or technicalschool

Completed secondary school

Did not complete secondaryschool

Adultpopulation

Remittancerecipients

Education

56

3%

3%

6%

8%

9%

11%

14%

17%

24%

3%

3%

7%

9%

9%

5%

12%

11%

16%

25%

5%

0% 10% 20% 30%

Guria

Mtskheta Mtianeti

Shida Kartli

Adjara

Kakheti

Samtskhe Javakheti

Kvemo Kartli

Samegrelo-Zemo Svaneti

Imereti

Tbilisi

Adultpopulation

Remittancerecipients

Regions

57

Approximately 95 percent of the Georgian population resides in the 10 regions where polling was conducted.No interviews were conducted in Region 1 (Abkhazia) because of security concerns or in Region 5 (Racha-Lechkhumi and Kvemo Svaneti) because it contains less than 1 percent of the population.

1. Abkhazia2. Samegrelo-Zemo

Svaneti3. Guria4. Adjara5. Racha-Lechkumi and

Kvemo Svaneti6. Imereti7. Samtskhe-Javakheti8. Shida Kartli9. Mtskheta-Mtianeti10. Kvemo Kartli11. Kakheti12. Tbilisi

Regions

58

47%

49%

53%

51%

0% 10% 20% 30% 40% 50% 60%

Remittancerecipients

Adult population Urban

Rural

Urban vs. Rural

59

Remittances to Georgia

60

63%

37%

Yes

No

Do you have family members living in another country outside of Georgia?

61

28%

63%

9%Yes

No

Do not havefamily inanothercountry

Have any of your relatives living in another country outside of Georgia ever sent you money?

62

5%

6%

7%

8%

9%

9%

11%

12%

18%

7%

0% 10% 20%

Shida Kartli

Adjara

Mtskheta Mtianeti

Kakheti

Guria

Tbilisi

Kvemo Kartli

Imereti

Samegrelo-Zemo Svaneti

Samtskhe Javakheti

Remittance RecipientsBy Region

63

Nine percent of Georgian adults – approximately 317,000 people – received remittances on a regular basis during 2006.

Major Findings

64

2%

5%

8%

8%

15%

17%

45%

0% 10% 20% 30% 40% 50%

Turkey / Israel

Armenia / Azerbaijan

Eastern Europe**

USA

Greece

Western Europe*

Russia

*Germany, France, Austria, Belgium, Switzerland, Netherlands, Italy, Spain, Portugal, Finland, England, Norway

**Ukraine, Czech Republic, Belarus

Country of Residence of Remittance Senders

65

2%

2%

2%

2%

3%

3%

3%

4%

9%

54%

0% 10% 20% 30% 40% 50% 60%

Vladivostok

Volgograd

Permi

Stavropol

Armavir

Rostov

Tiumen

Krasnodar

Saint-Petersburg

Moscow

Russian City of Residence of Remittance Senders

66

26%

23%

13%

25%

13%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Aunt / Uncle /Cousin / Other

Son or Daughter

Husband or Wife

Sister or Brother

Father or Mother

What is your relationship to the person who sends you money?

67

1%

9%

20%

30%

32%

7%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Don't know / No answer

About once a year

Every 4 to 6 months

Every 2 to 3 months

Once a month

2 times a month or more

How frequently does your family member send you money?

68

The average Georgian remittance recipient receives money 8 times a year.

Major Findings

69

33%

17%

40%

10%

0% 10% 20% 30% 40% 50%

More than 5years

Between 3 and 5years

Between 1 and 3years

Less than oneyear

For how many years has this family member been sending you money?

70

3%

2%

3%

3%

19%

37%

33%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Don't know / No answer

More than $500

$401 to $500

$301 to $400

$201 to $300

$101 to $200

$100 or less

How much money – on average – does your family member send you each time?In US dollars

71

The average remittance to Georgia is US$165.

Major Findings

72

The survey indicates that Georgia received approximately US$418 million or €304 million in remittances during 2006.

Major Findings

73

Remittances

€15 millionArmenia / Azerbaijan

€24 millionUSA€24 millionEastern Europe

€45 millionGreece

€304 millionTotal€6 millionTurkey / Israel

€50 millionWestern Europe€140 millionRussiaAmount in remittancesCountry of family member

74

The Remittance Process

75

1%

1%

2%

12%

20%

64%

0% 10% 20% 30% 40% 50% 60% 70% 80%

By mail

At a remittance company

Credit card or ATM card

Family member travelling to/from Georgia

By courier

At a bank

How do you receive this money?

76

5%

12%

29%

54%

1%

12%

11%

76%

0% 20% 40% 60% 80%

Other

Family membertravelling to / from

Georgia

By courier

At a bank

RussiaOther

How do you receive this money?By Location of Family Member

77

2%

2%

18%

78%

0% 20% 40% 60% 80% 100%

Don't know / Noanswer

Not satisfied

Somewhatsatisfied

Very satisfied

How satisfied are you with the services of the bank or remittance company?

78

3%

6%

13%

6%

72%

0% 10% 20% 30% 40% 50% 60% 70% 80%

None

Less than aquarter

Half

Three-quarters

All

Approximately what portion of the money you receive do you spend on daily expenses?

79

Georgian remittance recipients spend approximately 85 percent of the money they receive on basic daily expenses such as food, housing, clothing, utilities and medicine.

Major Findings

80

18%

3%

3%

11%

21%

26%

0% 5% 10% 15% 20% 25% 30%

Other

Open a savings account

Start a business

Buy or build a house

Health or life insurance

Education

Other than daily expenses, what do you use the money for?

81

4%

17%

30%

40%

9%

0% 10% 20% 30% 40% 50%

Once a year

A few times a year

Once a month

Once a week

Everyday

How often do you communicate with this family member or relative – the one that sends you money?

82

14%

11%

23%

19%

24%

8%

0% 5% 10% 15% 20% 25% 30%

More than 5 people

5 people

4 people

3 people

2 people

1 person

How many people – including yourself – benefit from the money you receive from your family?

83

Approximately 1 millionGeorgians benefit from remittances.

Major Findings

84

The Georgia Banking System and Investment Potential

85

24%

64%

10%

2%

0% 20% 40% 60%

Bad

Mediocre

Good

Excellent

Overall how do you see your family’s personal economic situation in Georgia?Remittance Recipients

86

5%

14%

81%

Positive

Negative

Don't know/ No answer

Overall, do you have a positive or negative opinion of the banks in Georgia? Remittance Recipients

87

89%

11%

Yes

No

Do you have a bank account?Remittance Recipients

88

92%

1%

2%

5%

0% 20% 40% 60% 80% 100%

None

Savings account

Business

Property

Do you have any investments in Georgia?Remittance Recipients

89

22%

26%

28%

32%

40%

0% 10% 20% 30% 40% 50%

Open savingsaccount

Finance universityeducation

Mortgage / Loan tobuy house

Loan to financebusiness

Health / Lifeinsurance

Remittance recipients “very interested”in financial investment products

90

Russian – Georgian Relations and Remittances

91

35%

65%

Yes

No

Did your family member living abroad send you money during the last 3 months? Remittance Recipients with relatives in Russia

92

57%

4%

39%Yes

No

Does the conflict between Russia & Georgia affect your family members’ living condition in Russia?Remittance Recipients with relatives in Russia

93

63%

4%

33%

Yes

No

Does the conflict between Russian & Georgia put obstacles in the money transfer process?Remittance Recipients with relatives in Russia

94