Growth of internal debts

Georgia’s external debt is around USD 8 billion and the country has a domestic debt as well. The Ministry of Finance says this is GEL 675 million, whereas the Ministry of Economy cites a figure of 500 million GEL.

One of the leaders of Industrialists party, Zurab Tkemaladze, says that the country should elaborate a strategy for paying off its internal debts. He suggests that 10% of the money accumulated from privatisation should be used to pay off internal debts. But so far the Government has not suggested any repayment plan at all.

Since August 2009 the Government has started taking on extra domestic debt by selling treasury liabilities. In the last 5 months the Government has sold treasury liabilities worth GEL 270 million, increasing domestic debt again. Furthermore it plans to saddle itself with extra liabilities of GEL 370 million. The situation is not alarming but a certain concern already exists.