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Finance ministry to issue treasury bonds

Wednesday, June 15
On June 22, Georgia's Ministry of Finance will start selling five year term treasury bonds. This is the first time the ministry will have carried out such a step. Some analysts think that this is aimed at solving certain financial problems in the country. However, others perceive the situation differently. One opinion considers that while there is nothing left in the country to privatize and sell and the FDI dramatically decreases, there are only two ways to cover the deficit: Either to take extra foreign debt, which carries a high risk, or to launch a financial pyramid scheme through issuing treasury bonds.

State officials and economists however challenge this opinion mentioning that by issuing treasury bonds they will stimulate further development of market.