Dramatic increase in Georgia’s foreign debt

It has become apparent that in 2011 Georgia’s state deficit will increase by almost GEL 949 mln. So, by the end of next year Georgia’s total foreign debt will be well over GEL 10 bln – more than 46% of the country's GDP.

Economic analysts think that financial assistance to Georgia will gradually decrease and the country will struggle to service its commitments and face problems in paying back its foreign loans. In 2013 Georgia will need around GEL 1.3 bln to repay the loans. This is a very dangerous tendency and the government should be carefully considering now the future problems which Georgia might face.