Page 43 - GEORptAug20

“Taking these factors into account, the monetary policy committee continued the gradual exit from the tightened monetary policy stance and reduced the rate by 0.25 percentage points. Despite the decline, monetary policy remains tight, ensuring a return of inflation to its target level in the medium term. The pace of further policy normalisation will depend on how quickly inflation expectations recede," the NBG stated.
The next meeting of the central bank’s monetary policy committee is scheduled for August 5.
8.3 ​Stock market
Georgian central bank announces new regulations as part of capital market reform
The National Bank of Georgia said on July 18 that it has drawn up two new regulations governing brokerage companies.
The aim of the regulations — the Rule of Licensing and Regulation of Brokerage Company and the Additional Rule of Regulation of Brokerage Companies Involved in High-Risk Financing Instruments — is to raise standards of service in the sector, and to protect investors’ interests and allow them to make well-informed decisions. They were drawn up as part of ongoing capital market reforms.
“It is noteworthy that the established requirements fully address the challenges in the sector and also reflect the principles of the EU Directives, International Organisation for Securities Commissions (IOSCO) and European Securities and Markets Commission (ESMA) regulations,” the NBG said in a July 18 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.
As of February 2020, 36 companies are admitted on GSE, with total market capitalization of USD0.668bn and daily turnover in January 2020 was GEL 50, according to the Georgian Stock Exchange (GSE).
43​ GEORGIA Country Report ​August 2020 ​ ​www.intellinews.com