Plans to issue Eurobonds

Prime Minister Nika Gilauri stated that the Georgian Government is considering issuing Eurobonds by 2011, but that the amount of money involved in the operation is not yet known. As you may recall Georgia issued USD 500 million in Eurobonds at a rate of 7.5% in spring of 2008. Where it went is not known clearly as there was a break in the summer when the world financial crisis struck. Georgia must pay back this loan in 2013. Independent analysts have challenged this decision – the Georgian Government could have taken an extra loan to cover this loan until 2013, but the fact that it is taking it in 2011 indicates that the government is facing serious economic problems, think the analysts. Representatives of state authorities deny these allegations and say the Eurobond issue is simply to attract extra finance.