Securitization Law to Offer Funding Lifeline for Small Banks in Georgia

Levan Tsutsunava, the managing partner at Alpha Capital Advisor, discussed the implications of the forthcoming securitization law during the "Business Partner" program, highlighting a crucial development for smaller banks in Georgia.

"With the enactment of the securitization law, smaller banks will gain a much-needed pathway to capital market funds, an essential move to level the playing field with larger institutions," Tsutsunava explained.

He emphasized the gap that currently exists between small and large banks, noting that smaller banks need to utilize such financial tools to remain competitive.

Tsutsunava is confident that the legislation will prompt major banks to issue securities compliant with the new securitization standards. "The aim is to extend support to smaller banks that possess securitizable assets but require guidance and initial capital to leverage this mechanism," he stated.

Drawing on Alpha Capital Advisor's expertise in this arena, Tsutsunava shared that they are well-prepared to assist interested organizations once the law is in effect. "We've thoroughly reviewed the legislation and are ready to offer our services to help these companies access funding," he said.

The advent of the securitization law is a significant stride for Georgia's financial sector, presenting a valuable financing tool for businesses seeking capital market resources.

Georgia's securitization reform is currently underway, backed by USAID's Economic Governance Program. The reform's objectives are to enhance financing accessibility and diversify financial instruments available to commercial banks and other business entities within the country.