Access to Georgian financial market made easier for foreign investors

Thursday, October 13

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

Clearstream, a post-trade services provider, is starting operating its new domestic market link to Georgia via its new local custodian and cash correspondent bank, the Bank of Georgia.

The National Bank of Georgia (NBG) announced it was welcoming Clearstream’s entrance to Georgia as it was offering useful service to foreign investors such as purchasing Georgian state securities and save to the Clearstream.

A company with 45-years of experience started the process of entering Georgia about two years ago and was now already ready to provide the post-trade infrastructure for the Georgian 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 the statement by NBG.

The NBG explained that now thousands of customers of Clearstream who already had accounts in several currencies could add sub-account in Georgian 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 the NBG.

The NBG also said the investors were already using this "new infrastructure” and this was already positively affecting the security market development in Georgia.

Meanwhile, earlier this year Clearstream announced "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 is offering security services only for state securities, however "we plan to expand the service offering as demand grows”, and the company’s service will also include private securities. (agenda.ge)