Page 38 - GEORptSep19

statement .
The rules are mandatory for all licensed brokerage companies, but due to their complexity active brokerage companies have been given a transition period during which they have to bring their work into compliance with the legislation.
The Georgia Stock Exchange (GSE) recorded a turnover value of GEL8,787.65 as of June 2018, according to CEIC data.
8.4 International ratings
Georgia - Rating agency
as of August 2019
Bond rating: Moody’s
Ba2 (Stable)
Bond rating: Fitch
BB (Stable)
Bond rating: S&P
BB- (Positive)
Fitch affirms Georgia’s BB sovereign rating
International rating agency Fitch on August 16 affirmed Georgia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at BB,with a Stable Outlook. This is the best non-investment grade, indicating that the country features elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time.
Georgia’s robust growth, above the BB average, is offset by the external vulnerabilities magnified by the ban on tourism set by Russia, the rating agency reasoned.
Fitch forecasts Georgia’s economic growth to decelerate to 4.3% in 2019, from 4.7% in 2018, as credit growth slows down and the Russian flight ban hinders expansion of the tourism sector. Nonetheless, it will remain above the forecast current BB median of 3.3%. Acceleration of infrastructure spending and slightly looser fiscal policy will support a pick-up in growth to an average 4.7% in 2020-2021.
Georgia's ratings are supported by governance and business environment indicators that are above the current medians of BB category peers, and a track record of macroeconomic resilience against regional shocks. The country’s agreements with the International Monetary Fund (IMF) are an assuring factor as well.
38 GEORGIA Country Report September 2019 www.intellinews.com