Georgian Legislation and the foundation principles of Georgian State debts (obligations)

Abstract

This paper reviews Georgian legislation on government securities, which rests mainly on the Law "On State Debt" (1998) rather than a dedicated securities law. The law defines state debt and the types of government securities (discount or interest-bearing, short-, medium- or long-term), and gives the Ministry of Finance authority to issue them, with the National Bank of Georgia acting as fiscal agent. Treasury bonds originated in the government's restructured debt to the National Bank, due for repayment by 2030. The paper identifies a legislative gap: proceeds may be used only to cover the budget deficit and short-term cash gaps, which narrows the instrument's use. Because the Law "On the Securities Market" excludes government securities, they are not openly traded, and auctions run through commercial banks.