What Hinders the Progression of the Capital Market in Georgia?
USAID's Economic Governance Program has probed into the predominant issues impeding the evolution of the capital market within Georgia. Several critical factors emerged from this analysis, including the nonexistence of major institutional investors, the prevailing unpreparedness of Georgian enterprises, a deficiency in public capital instruments, and a scarcity of competent professionals.
Lasha Jugeli, the Executive Director of the Association of Georgian Financial Markets Treasuries, elucidates that the predominant challenge resides in a pervasive lack of knowledge, indicating an imperative need for extensive informational and educational interventions.
"USAID is instrumental in fortifying our organization in myriad ways, notably in organizational development and the execution of educational initiatives, our fundamental operational essence. Our association, a relatively nascent entity, orchestrates regular educational endeavors aimed at enhancing service robustness and stability. It is crucial that such quality educational interventions are accessible to market participants, given their substantial inherent costs," expressed Lasha Jugheli.
He emphasized the strategic implementation of trainings within Georgia by the association, optimizing cost-effectiveness and, aided by USAID and other benefactors, enhancing accessibility through complimentary or cost-reduced programs for market constituents.
Jugheli underscored the perpetual market demand for skilled professionals, stating, "Our initiatives are also targeted at addressing the pronounced gaps in supply within the professional landscape. The levels of interest are remarkably high."
He recounted the recent conclusion of an intensive educational program focusing on the intricate applications of derivatives trading tools, which saw participation from a diverse set of professional entities, ranging from corporations and legal firms to financial advisors and auditing companies.
He highlighted, "The objective is to encapsulate the market comprehensively and, in instances of potential disputes, to elucidate the modus operandi of international practices."
Jugheli revealed the imminent rollout of several training programs focusing on diverse aspects such as hedging and certification training courses for market participants. He affirmed the provision of complimentary educational programs for member companies and the availability of streamlined application processes through their various communication channels.