the world government securities are one of the most reliable ways of investing
capital for both local and international investors because of their high
liquidity and minimal risk.
Economists consider the lack of a secondary bond market as a problem while the primary securities market is controlled by banks and access to them is closed for private investors.
“If a private and legal person wants to purchase government securities, then he should use mediation from banks that decreases the interest in buying bonds. This is a big problem that hinders the development of the financial market. The state prefers to deal with banks as it’s an easier and more convenient way, ” the financier Mikheil Tokmazashvili notes.
“If a foreign investor wants to buy government bonds, the banks will set such unacceptable conditions that will make this deal unprofitable. In the current situation, the quality of government securities is seriously falling while the National Bank is not going to form a secondary market, ”he points out.
In 9 months of 2019, the National Bank has sold securities worth GEL 25.2 million mainly to commercial banks.