Moody's, the leading rating agency, has published a detailed opinion on the draft law on covered bonds developed by the National Bank of Georgia. The purpose of the draft law is to secure enhanced access of commercial banks to diversified sources of funding and to promote the development of the covered bond market in Georgia. The draft law on covered bonds regulates legal relations related to the issuance of covered bonds, and the supervision of issuers and their work.

"Georgia’s new covered bond law is a solid foundation to develop the market. The law has strong safeguards for investors, similar to rules in other European countries, including provisions to preserve cover pool quality and overcollateralization requirements that are higher than in some other established cover bond markets," states the Moody’s report.