TBC, ISET Discuss Capital Market Development at ‘Reformer’
On March 12, the ISET research institute and TBC Capital hosted an event in the framework of the project ‘Reformer’ to discuss the development of the capital market.
Vice-President of the Georgian National Bank, Archil Mestvirishvili, attended the event alongside Deputy Minister of Finance, Nikoloz Gagua, Regional Director of European Bank for Reconstruction and Development (EBRD), Bruno Balvanera, and representatives of private sector and academic circles.
According to the National Bank's data, 67.7% of the Capital Market Reform Plan approved in 2016 is now fulfilled. Last year, the index was 51%. Along with other important events during the last year, the rating agency Scope was added to the list of agencies recognized by the National Bank as a trusted agency for National Securities Ratings. With the help of experts from the International Monetary Fund, a package of tax reforms has been developed to consider taxation of various financial instruments according to the best international practices.
The representative of the National Bank opened the meeting by presenting a short brief of the reforms, followed by ISET Economist Eric Livny, who reviewed the general economic situation in Georgia and ISET’s contribution to Georgia’s democracy.
“We need to be involved in how decisions are made, in monitoring the implementations of these decisions, and to be able to suggest improvements when possible,” he stated.
Deputy Minister of Finance Niko Gagua spoke about the importance of the reform, presenting the vision of the Ministry to the audience.
“The Ministry of Economy and the National Bank are actively working in this regard. The development of the capital market is vital, and we see it as one of the highest potential tools Georgia has to be able to fulfil the function of regional hub,” Gagua said.
EBRD Regional Director of European Bank for Reconstruction and Development Bruno Balvanera spoke about the importance of transparency and capital development.
“In many countries, capital is not yet developed. In small countries like Georgia, this issue is especially well known. Generally, capital market development is a difficult and ambitious process. The results should be expected in the long-term. For the proper development of this reform, it is necessary to coordinate between the government, the National Bank, donor organizations and others.”
‘Reformer’ is a project of the ISET research institute and is implemented with the support of G4G USAID, aimed at assessing the progress of economic reforms twice a year.
Nia Pataraia