Observation of State Obligations Market of Georgia and the Deposit Certificate of The National Bank of Georgia – its issue and the purpose

Abstract

This paper surveys the types of government securities circulating in Georgia: treasury bills (since 1997), treasury bonds (since 2006), National Bank of Georgia deposit certificates (since 2006) and Eurobonds (since 2008). No municipal securities exist, which holds back the market and local self-government. The paper traces the treasury bonds to the 2006 restructuring of the government's debt to the National Bank. That restructuring ended direct central bank financing of the deficit and set repayment through 2030. It then describes deposit certificates, which replaced short-term deposit auctions as a liquidity tool open only to commercial banks. Their growing volumes and 2015-2016 issuance schedule show the banking sector's interest, but they are not accessible to the general public.