Page 41 - GEORptNov18

S&P affirms Georgia’s BB-/B saying growth set to remain strong
S&P Global Ratings on May 4 affirmed the ‘BB-/B’ ratings of Georgia and said the outlook was stable. Georgia's growth is set to remain strong and its IMF programme should mitigate balance of payment risks and act as a fiscal policy anchor, the rating agency said.
The update refers to the country's long and short-term foreign and local currency sovereign credit ratings.
Preliminary data showed GDP accelerated through the first quarter of this year, rising from 4.4% in January and 5.5% in February, to average at 5.2% y/y for the quarter. The expansion in March was driven by a rise in activity in manufacturing, transport, real estate and trade, and “other community, social and personal service activities”.
The statistics office also released preliminary data on Georgia’s external trade, showing that exports were up 28.4% to $740.3mn, while imports rose 21.6% to $2.0834bn.
8.5 Fixed income
8.5.1 Fixed income - bond news
Dutch FMO launches bonds in Georgia to finance smaller businesses
The Netherlands Development Finance Company (FMO) is to launch GEL103mn (€33mn) worth of bonds on Georgia’s market and pass the gathered funds to major Georgian lender TBC Bank to finance young entrepreneurs running micro, small and medium size enterprises in the country, as well as young retail customers requiring mortgage loans, TBC has announced .
The move comes at a time when new, tighter regulations are putting pressure on the financing of smaller businesses.
“We started our partnership in 2006 and during these 12 years, FMO has provided more than $350mn in MSME [micro, small and medium sized enterprises] and mortgage loan financing, as well as local currency and subordinated loans”, said Vakhtang Butskhrikidze, CEO of TBC Bank.
Butskhrikidze added that local currency funding was of great importance to the Georgian financial sector and that a public placement of bonds will further support local capital market development in Georgia.
TBC Bank is part of London-listed TBC Bank Group PLC.
41 GEORGIA Country Report November 2018 www.intellinews.com