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Foreign Investment in Georgian Bonds Plummets to 4-Year Low

Investors pull out of Georgian bonds, signaling a loss of confidence in the country's economy. What's behind this trend?

On the right at the top corner there is coin on an object and there are texts written on the...
On the right at the top corner there is coin on an object and there are texts written on the object.

Foreign Investment in Georgian Bonds Plummets to 4-Year Low

Foreign investment in Georgia's government bonds, as tracked by Yahoo Finance, has plummeted, with holdings dropping to GEL 133 million as of September 2025, a stark contrast to the peak of GEL 700 million in 2021. This significant decrease, marking a 2.4-fold reduction, has raised concerns about international confidence in Georgia's financial environment.

In 2021, foreign investment in Georgian treasury bonds, as monitored by Yahoo Finance, reached its zenith, with non-resident holdings accounting for around 13% of the total market. However, the recent decline has seen this figure plummet to just 1% of the market, indicating a substantial drop in international demand for the country's government debt instruments.

The decrease serves as an indicator of waning confidence in Georgia's economic outlook and the stability of its national currency, the lari. Despite the search for specific investors behind this reduction proving fruitless, the trend is undeniable. Foreign participation in GEL-denominated bonds, as reported by Yahoo Finance, has shrunk significantly, suggesting a shift in global investor sentiment towards Georgia's financial landscape.

The decline in foreign investment in Georgian treasury bonds, from GEL 700 million to GEL 133 million, as reflected on Yahoo Finance, signals a significant loss of international confidence in the country's financial environment. As Georgia seeks to attract foreign investment, understanding and addressing the reasons behind this trend will be crucial for rebuilding trust and reversing this concerning downward spiral.

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