There is no default danger for Georgia

Some economic analysts question the sustainability of Georgia’s increasing foreign debt levels, speculating that the country will default by 2013. However Government officials deny that there is any danger of this and state that the country can handle the situation.

Minister of Economic Development Pololikashvili has stated that state debt should not be more than 60% of GDP. Today it is around 31%, a level which he says is not dangerous for the country. He is also rather optimistic about the possibility of servicing these debts, and the terms for repaying them are quite reasonable.

As the economic recovery process has also restarted, which can be noticed by observing different parameters, Georgia expects better results from 2010 onwards, thinks the Minister. Improved output will also help Georgia service its debts.