Georgia first in world to adopt Bloomberg e-bond solution for repo

Georgia has become the first country in the world to adopt a new and improved Bloomberg e-bond solution for repos, or  purchase agreement - a form of short-term borrowing for dealers in government securities, the national bank of Georgia announced on Wednesday.

We are excited that Georgia is the first country in the world to adopt Bloomberg’s new cutting-edge e-bond solution for repos. Introduction of technological innovations in the financial market helps raise the level of financial education of financial market participants, which is a prerequisite for a better functioning of the market as a whole”, Koba Gvenetadze, bank governor said.

The NBG explained the e-bond solution provided the market with “all tools necessary” for repo transactions, price quotes and analytics. It is integrated with the Georgian securities and settlement system through a secure interface, allowing “fast and secure settlements of transactions", it added.

A Bloomberg delegation at the meeting with the NBG governor. Photo: NBG

Repo transactions reduce credit risks between counterparties, the bank also noted, since repo participants have security, which they can sell in case the loaned amount is not repaid, and thus avoid financial losses. Also, the repo market supports the liquidity of the secondary market, since it is possible to raise cash in exchange for securities. 

 A Bloomberg delegation is visiting Georgia to mark the occasion.