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Pension reform impacts capital market in Georgia

Finance Materials 4 May 2020 16:57 (UTC +04:00)
Pension reform impacts capital market in Georgia

BAKU, Azerbaijan, May 4

By Tamilla Mammadova - Trend:

A significant increase in activity has been observed in the debt securities market of Georgia in recent years, Trend reports with reference to the annual report of the National Bank of Georgia (NBG).

Over the past five years, the volume of treasury and corporate securities of the local market increased by about 14 times, in annual terms - by 31 percent and 69 percent, respectively.

The growth trend of the capital market was also influenced by pension reform, which is an instrument of long-term financing.

In 2019, the local commercial bond market grew by 25 percent and its volume amounted to 4.02 percent of GDP, NBG said.

The corporate bond market increased by 21 percent and amounted to 1.55 percent of GDP.

According to the National Bank, the role of treasury bonds in the development of the bond market in national currency is quite big. Significant growth was also observed in this segment in 2019, and its volume amounted to 7.8 percent of GDP.

Meanwhile, in 2019, the liquidity indicators of the local market also improved.

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