Georgian banks have issued mortgage loans of GEL 9.5 billion. Soon, commercial banks will be able to create a new financial instrument (a mortgage bond) on the basis of these credits. Currently, a total of 144,000 mortgage loans are recorded in banks, 57% of which are in the national currency, while 43% - in foreign currency.

Commercial banks can raise funds in several ways - these are deposits from citizens, businesses and the government. Also issuing unsecured bonds and placing them in the capital market. Another way is to get new capital from the founders of the bank, or issue other securities.

At the end of last year, the Parliament adopted a law on mortgage-backed bonds, and a few days ago, the National Bank issued an order regulating the issuance of these securities.

According to Nikoloz Gagua, the vice governor of the National Bank, the market of mortgage-backed bonds will probably reach GEL 2-3 billion in the next 2-3 years.

"We deeply believe that this tool will be popular in the non-financial corporate sector. We also believe that it will be very attractive for retail investors and will be a significant stimulus for the market. The volume of mortgage-backed bonds is estimated to be around GEL 2-3 billion in the next 2-3 years, which is many times higher than the current bond market. This tool will also be very important in order to become a new financing tool for mortgages, it will have a positive impact on improving the conditions of mortgage loans," Nikoloz Gagua said.