Access to Georgia’s financial market easier for foreign investors

Latest Geostat data revealed the country's estimated real GDP growth rate reached 3.2 percent in Q1 2015, which was a 2.6 percent increase year-on-year. Photo by N. Alavidze/, 12 Oct 2016 - 11:54, Tbilisi,Georgia

Georgia is making it easier for foreign investors to access the local financial market by becoming the 55th domestic market link for an important player in the securities services industry.

Clearstream, a post-trade services provider, started operating a new domestic market link to Georgia via its local custodian and cash correspondent bank, the National Bank of Georgia (NBG).

Today NBG welcomed Clearstream’s entrance to Georgia and noted it offered useful services to foreign investors, such as purchasing Georgian state securities and save with Clearstream.

Clearstream, with 45 years' experience, started efforts to tap into Georgia's market about two years ago. Now the company was ready to provide post-trade infrastructure for Georgia's securities industry offering access to a growing number of international markets.

Clearstream is facilitating the process of purchasing securities for foreign investors in foreign countries which is quiet long process. Clearstream has learnt Georgian market, legislation, regulation and signed agreement with Bank of Georgia. All these works took two years,” said NBG's statement.

Through this effort, thousands of Clearstream customers who already had accounts in several currencies could add a sub-account in Georgia's national currency Lari, where they could save and purchase Georgian securities.

These procedures are costly and time-consuming for investors and many of them were expected to refrain from investing in Georgia,” said NBG.

NBG added several investors were using this "new infrastructure”, and even though it's still very new, already positive effects were being felt in the development of Georgia's securities market.

Earlier this year Clearstream announced it planned to enter Georgia. At the time it said: "The opening of our link to Georgia follows the enhancement of the GEL into a full settlement currency. These strategic moves mark another step in our approach to increase access to the CIS and Caucasus regions”.

Currently Clearstream offered security services only for state securities however the company planned to expand its service as demand grows. In the future the company’s service will also include private securities.