The interest of non-resident investors in the securities issued by the Government of Georgia is growing.
According to the report of the National Bank of Georgia, foreign investors owned 657.6 million GEL worth securities by December 2020, which is 45 million GEL more comparing to November. However, the increase is 72% or 277 million GEL comparing to December 2019.
A government bond is a debt security issued by a government to support government spending and obligations.
According to the NBG, the average yield on government bonds in December 2020 was 8.17%. Consequently, due to high-interest rates, these assets remain attractive to international investors.
As of December 2020, the volume of the Georgian government bond market amounted to 5.8 billion GEL. 11.3% of these liabilities are owned by foreign investors. 70% of the securities is owned by Georgian commercial banks, and 17% belong to the National Bank.
Other local investors (excluding commercial banks) own government securities of 58 million GEL.
