Clearstream is to expand its international coverage by opening a new domestic link to Georgia on January 11. It says its 55th domestic link will help foreign investors to access the local market and enable it to offer Georgian government bonds and supranational bonds via the Bank of Georgia, which acts as local custodian and cash correspondent bank.
Berthold Kracke, head of business management and member of the Clearstream executive board, said: “The new link…is an important milestone as it marks another step in Clearstream’s strategic aim to increase access for our global customer base to the Caucasus and CIS region. It also demonstrates Clearstream’s commitment to support efforts made by the Georgian authorities and market participants to align their domestic market infrastructure and legal framework with international standards.”
Clearstream says the new is also an important step for the National Bank of Georgia, which acts as central securities depository (CSD) for government bonds. Giorgi Kadagidze, governor of the National Bank of Georgia, described the move as a major milestone for capital market development in the country. “It will work as a platform for European and international investors helping them to discover the Georgian market, which already features a liberal tax regime, ease of entry and exit and a leading market infrastructure,” he says.