Georgia takes measures to increase market transparency and maintains credit ratings unchanged. By Yuliya Shibukova, Relationship Manager, GSS Russia
The Parliament of Georgia ratified an intergovernmental agreement (IGA) on tax information exchange between the United States and Georgia to fulfil the Foreign Account Tax Compliance Act (FATCA) requirements. The US Act is designed to combat offshore schemes used by U.S. individuals and legal entities for tax evasion.
In the framework of the signed IGA, which follows reporting model 1 IGA, Georgian financial institutions will report information on their U.S. customers to the Internal Revenue Service, the U.S. government agency responsible for tax collection and tax law enforcement.
It is envisaged that the Revenue Service of the Ministry of Finance of Georgia will act as mediator between the parties under the given IGA and will coordinate their mutual obligations.
Fitch Ratings confirmed ratings for Georgia
Fitch Ratings affirmed Georgia's Long-term foreign and local currency Issuer Default Ratings (IDR) at 'BB-' level with stable outlooks. The issue ratings on Georgia's senior unsecured foreign and local currency bonds were reaffirmed at 'BB-'. In addition, Fitch Ratings left unchanged the country ceiling rating at 'BB' and the short-term foreign currency IDR at 'B'.