Georgian National Bank to sell gov't bonds

The National Bank of Georgia will begin trading in government bonds, a report of the National Bank said on Thursday.

"In June and July, the National Bank intends to sell securities at 114 million laris ($ 1 = 1.63 lari), with a maturity of one to five years. Auctions will begin this week and will be held weekly, on Wednesdays," the report said.

Sale of securities by the National Bank serves the reduction of fluctuations in interest rates and increase in the effectiveness of monetary policy, as well as the objectives of the sterilization of excess liquidity in the money market.

These bonds were issued by the Government in the 1990s, under the agreement for re-registration of loans issued by the National Bank to the government into securities. The agreement between the National Bank and the Ministry of Finance took place in 2006, after which annually the securities worth 48 million lari become working, and the National Bank can use them for open market operations.


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