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Inflation-indexed bonds: What potential in in Georgia’s financial development?

Georgia’s capital markets are still at an early stage of development. In such an environment, the introduction of inflation-indexed bonds could make sense.

Inflation-indexed bonds remove the inflation risk for the investor by transferring it to the issuer. This makes such bonds particularly suitable in countries with volatile inflation rates or unstable monetary policies.

Georgia meets a number of criteria for introducing inflation-indexed bonds. The policy study discusses the pros and cons of introducing this type of bond.

Policy Study