Â鶹´«Ã½

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
≔ Menu
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. Clearstream to open route to Georgia
Industry news

Clearstream to open route to Georgia


18 December 2015 Tbilisi
Reporter: Stephanie Palmer

Generic business image for news article
Image: Shutterstock
Clearstream will open a domestic link in Georgia, becoming the first international central securities depository to establish a link with the country.

The link will open on 11 January 2016 and is part of a strategy to increase access to the Caucasus region and the Commonwealth of Independent States (CIS) for international investors.

It also means Clearstream will be able to offer Georgian government bonds and superannuation bonds through its partner, Bank of Georgia, which will act as local custodian and cash correspondent bank.

A separate entity, the National Bank of Georgia, will be the central securities depository (CSD) for government bonds.

The new offering will include internal free-of and against-payment settlement in all eligible currencies, including the Georgian Lari (GEL). Other services include external free-of-payment settlement, custody and reconciliation, and asset servicing.

Berthold Kracke, head of business management at Clearstream and a member of the executive board, said: “The new link to Georgia 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.â€

“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.â€

Murtaz Kikoria, CEO of Bank of Georgia, commented: “I am pleased that Bank of Georgia becomes the local custodian and cash correspondent bank for Clearstream and am excited about our prospects of partnering with Clearstream in expanding its international coverage by opening a new link to Georgia.â€

“It is an important step forward in terms of market coverage for Clearstream and another major boost for Bank of Georgia to be at the forefront of the capital market development in Georgia.â€

Giorgi Kadagidze, Governor of the National Bank of Georgia, added: “The enabling of the Georgian link by Clearstream is a major milestone for capital market development in our 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.â€

“This was a long anticipated event and we hope to see increased activity of international investors following this announcement. We look forward to continuing cooperation with Clearstream in other areas aimed at developing the local capital market, which will bring mutually beneficial results.â€
← Previous industry article

OCC issuing $39m refund to clearing members
Next industry article →

Fed finally raises interest rates
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Custodian

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →