Foreign investors’ interest in Georgian government bonds has declined significantly over the past year, according to First Deputy Minister of Finance Giorgi Kakauridze. As of September 2025, non-residents held government bonds worth 133 million GEL, compared to 319 million GEL in the same period last year, which was a decrease of almost 2.4 times.
Kakauridze explained that this decline is primarily driven by global financial conditions and exchange rate dynamics. “When global interest rates rise, U.S. Federal Reserve bonds become more attractive compared to Georgia’s, leading investors to redirect funds there,” he said.
Kakauridze added that the strengthening of Georgia’s national currency has also reduced the appeal of local bonds for foreign investors. “When the nominal and real effective exchange rates strengthen against the dollar, foreign investors’ interest naturally declines,” Kakauridze noted.
According to the Deputy Minister, investor activity could recover once global interest rates begin to fall. “As soon as we see the Federal Reserve and Euribor rates decline, we expect renewed interest in Georgian securities,” he said.
