30.Nov .2022 12:45

Georgia Adopts Bloomberg E-Bond Solution For Repos

Georgia Adopts Bloomberg E-Bond Solution For Repos
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Georgia is the first country to adopt a new and improved Bloomberg e-bond solution for repos. Bloomberg delegation is visiting Georgia to mark the occasion. The company's representatives met with NBG Governor Koba Gvenetadze on Wednesday.

The NBG closely cooperates with Bloomberg to support the development of the financial market. Both the NBG and local market participants have enjoyed using the Bloomberg solution over the past decade.

The Bloomberg E-bond solution allows local market participants to trade repos using modern technologies. The E-bond solution provides the market with all tools necessary for repo transactions, price quotes, and analytics. The e-bond solution is integrated with the Georgian Securities and Settlement System (GSSS) through a secure interface, allowing fast and secure settlements of transactions.

Repo transactions reduce credit risks between counterparties, since the repo participants have security, which they can sell in case the loaned amount is not repaid, and thus avoid financial losses. Also, the repo market supports the liquidity of the secondary market, since it is possible to raise cash in exchange for securities. Therefore, the repo market is an important component of the financial system.

A stable financial market is the central focus of the National Bank of Georgia, as it ensures financial stability, improves the monetary policy transmission mechanism and promotes sustainable economic growth of the country.

Representatives of commercial banks were actively involved in the configuration and testing together with the NBG.

"We are excited that Georgia is the first country in the world to adopt Bloomberg’s new cutting-edge e-bond solution for repos. Introduction of technological innovations in the financial market helps raise the level of financial education of financial market participants, which is a prerequisite for even better functioning of the market as a whole. Consequently, the public benefits from a financial system equipped with modern systems and tools, adapted to continuous development and improvement. The National Bank of Georgia, will continue to work together with commercial banks on introducing innovations in the financial market," said Koba Gvenetadze.