The controversial bill brought down shares of Georgian companies

The recently adopted law on «foreign agents» in Georgia has shaken investor sentiment, causing echoes of political turmoil that even affected the London stock market.

The political upheavals surrounding the law had a negative impact on the shares of TBC Bank Group PLC, Georgia Capital PLC and Bank of Georgia Group PLC listed in the UK. The shares of these companies fell by more than 20%.

This event negated last year's stock growth, which reached record highs due to Georgia's good macroeconomic prospects. However, the promotion of the bill worsened investor sentiment. According to a number of economists, Georgia is in a very unstable situation due to a large current account deficit and dependence on Western capital. Geopolitical concerns were added to this.

Georgian Prime Minister Irakli Kobakhidze said that the government will promote the law despite the veto imposed by President Salome Zurabishvili.

Recall that this law is aimed at increasing the transparency of foreign sources of financing for non-governmental organizations and the media. The consequences of the bill's adoption were the fall of the national currency, and therefore the National Bank of Georgia intervened to stabilize the lari.