Expert: Eurorzone crisis affects Georgia’s securities

Business Materials 11 January 2012 14:51 (UTC +04:00)

Georgia, Tbilisi, Jan.11 / Trend, N. Kirtskhalia /

The crisis in the eurozone has already affected securities in Georgia, BG capital expert Giorgi Shengelia told Trend on Wednesday.

He said because of the crisis in the eurozone investors are cautious, which affected the Georgian eurobonds.

"Last week the cost of the bonds decreased by 0.01 percent and amounted to $103.875 percent (annual rate - 4.289 percent)," Shengelia said stressing that at the same time basic macroeconomic indicators of Georgia are more stable compared to several European countries.

A similar situation, according to analysts, occurred with respect to bonds of the Georgian Railway.

He said the same trends were observed with respect to these securities, despite the fact that the Georgian Railway has strong financial position.

In tmer of the Bank of Georgia's shares, the dynamics of their cost, according to Shengelia, is in close correction with the global index and, despite the bank's steadily growing financial indicator, the price of its shares fell by 4 percent - to $12.50 last week.

Shengelia added that investors' caution in the long-term period is justified, as if the eurozone collapses, Georgian economy may face problems, although such likelihood is scanty.