No deals were made on the Georgian Stock Exchange for two months. Giorgi Paresishvili, head of Georgian Stock Exchange names coronavirus pandemic as the main reason.
As he explains, coronavirus has completely stopped the bond market, which was developing dynamically before the pandemic. In addition, he noted that trading with the companies’ shares were not active before the pandemic.
“When the matter touches issuance of securities, companies in Georgia mainly issue bonds, which do not diverge much from a bank loan.
Issuing stocks is more difficult and it is associated with more difficulty. It is also a deterrent that company owners do not want to reduce their stake in the company, while traditionally in Georgia private companies are in the hands of one or more individuals or families and they do not want to lose control.
As for bonds, their issuance has been greatly affected by the COVID-crisis over the past year. Due to the coronavirus, companies have suspended development plans, the situation is unclear, market demand is reduced, many businesses are not working.
But, before the start of the pandemic, the bond issue was developing well. I hope that the pandemic is over, it will return to its old level, "- said Giorgi Paresishvili.
It worth noting that eight deals with a volume of 2,453 GEL were made on Georgian Stock Exchange in 2021. The final deal was registered on February 23, where Liberty Bank’s shares worth 366 GEL were sold.
