Regulatory framework for securitisation to go into effect in Georgia, says central bank

The National Bank of Georgia on Monday said a regulatory framework for securitisation, the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities, would be put into effect in Georgia “in accordance with the best international standards”.

The body added the Parliament had already approved the corresponding law that would regulate the transformation of long-term cash assets into liquid assets by business entities through the issuance of securities. 

The bank said the new legal framework was “substantially reducing the risks” associated with securitisation while providing transaction transparency for investors.

The body said the goal of the reform was to improve access to finance in Georgia for both financial and non-financial sectors.