Interest of non-resident investors in securities issued by Georgia up
BAKU, Azerbaijan, Jan.14
By Tamilla Mammadova – Trend:
The interest of non-resident investors in the securities issued by the Government of Georgia is growing, Trend reports via the National Bank of Georgia (NBG).
According to the report of the NBG, foreign investors owned 657.6 million lari ($200.5 million) worth of securities by December 2020, which is 45 million lari ($13.7 million) more comparing to November. However, the increase is 72 percent or 277 million lari ($84.4 million) comparing to December 2019.
A government bond is a debt security issued by a government to support government spending and obligations.
According to the NBG, the average yield on government bonds in December 2020 was 8.17 percent. Consequently, due to high-interest rates, these assets remain attractive to international investors.
As of December 2020, the volume of the Georgian government bond market amounted to 5.8 billion lari ($1.7 billion). Some 11.3 percent of these liabilities are owned by foreign investors. Some 70 percent of the securities are owned by Georgian commercial banks, and 17 percent belong to the National Bank.
Other local investors (excluding commercial banks) own government securities of 58 million lari ($17.6 million).
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