Georgia: head over ears in debt – Articles –

Georgia: head over ears in debt – Articles – “According to Georgian Finance Ministry the volume of the country’s 2009 external debt has increased by almost a third. In March the IMF board of governors plans to decide on granting Tbilisi a new loan – USD 150 million this time. In this situation Georgia is actively hunting for markets to sell its produce though Saakashvili-inspired breakdown of ties with Russia hits the country’s financial sector heavily. A logical question comes up: how great is the foreign donors’ credit of trust to Tbilisi?

Last weekend Georgian Finance Ministry reported on a 30.8% increase in the country’s foreign debt over 2009 amounting to almost USD 3.5 bn. Georgia’s total debt on bilateral loans has grown from USD 537 to 553 bln with USD 118 mln owing to Moscow.”

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