Additional treasury liabilities

In 2010 the Georgian Ministry of Finance will issue additional treasury liabilities worth GEL 360 million. Analysts suggest that this step has only one goal, to fill the deficit in the budget.

Former Minister of Finance Lekso Aleksishvili explained that the increase of treasury liabilities is a sign of budget deficit increase. In 2009 the Ministry of Finance issued treasury liabilities for GEL 270 million, which should be repaid in 2010.

Economic analyst Irakli Kovzanadze thinks that issuing treasury liabilities is a good instrument for banks to control their liquidity.