Clearstream company has included Georgia in the list of those markets that it offers to clients starting 2016. This decision enables foreign investors to buy Georgian state securities and store them in Clearstream system.
With head office in Luxembourg, Clearstream is a financial institution with the status of one of the international central depositors with a 45-year experience.
The company is a major player in the securities services field on the global market and currently, operates in 56 countries and Georgia has also joined them. Clearstream serves about 2500 clients in 110 countries.
It is quite protracted and hardworking preparatory process to purchase securities in foreign countries. Financial institutions like Clearstream considerably alleviate this process for investors. Clearstream has examined the Georgian market, legislation, regulations, concluded agreement with one of Georgian commercial banks on providing services and arranged due infrastructure. All these efforts have taken about 2 years. Ultimately, Clearstream has chosen Bank of Georgia as an operator commercial bank.
After the process completion, thousands of Clearstream clients, who had opened bank accounts in one or several currencies, can simply add Georgian GEL sub-account and buy and store Georgian securities. Individual regime for passing these procedures require more financial resources and more work and many investors would abstain from putting money in the country. Therefore, Clearstreame’s entrance is an important signal for foreign investors in terms of access to Georgian finance market.
Investors already enjoy new infrastructure and their involvement will make positive influence on the demand volume and interest rates on the securities market. Currently, only Georgian state securities can be stored in the Clearstream system, but later the system will open for private securities too.