Central bank official highlights efforts in enhancing Georgia’s investment funds at IFC event

Davit Abesadze, the Head of the Securities Market Supervision Department of the National Bank of Georgia, on Wednesday highlighted the central bank’s initiatives to enhance the legal framework surrounding investment funds in the country and align it with international best practices.

Speaking at an event on venture capital funds, supported by the International Finance Corporation and the Swiss State Secretariat for Economic Affairs, Abesadze underscored legislative reforms, particularly in the taxation of investment funds, which he said fostered a “favourable” environment for fund development within the country.

Effective supervision and a sound regulatory framework are essential for developing the investment fund market and boosting investor confidence in local participants. The European Commission’s 2023 report on Georgia’s bid for EU membership acknowledged the legislation governing collective investment schemes in the country meets EU standards”, he said.

Photo: NBG

The NBG, along with other parties involved, has put much effort into establishing this regulatory framework. Since the passage of the Law on Investment Funds in 2020, multiple asset management companies and investment funds have been established, including a newly registered venture capital fund”, Abesadze added.

The event was part of the IFC's digital financial services project, which aims to enhance the development of digital financial services in Georgia’s financial sector. The project is designed to improve access to venture and private capital, creating new opportunities for private investments within the country.