Ministry of Finance nearing securities limit
By Messenger Staff
Friday, February 24The Ministry of Finance has begun selling long-term treasury securities. Financial analysts believe that this is an indication of problems in the state budget.
The Georgian budget allows for the distribution of treasury securities of up to 85 million GEL in 2012. However, in the 50 days since the New Year, liabilities have already reached 60 million GEL. It is believed that this figure will further increase.
This step has been taken by the Ministry of Finance to raise capital for the government, although it is a somewhat risky policy. Analysts note that the current leadership will not be in power by the time the country has to repay the securities.
Most of the holders of the securities are the Big Three Georgian banks: Bank of Georgia, TBC Bank, and Bank Republic.