Georgia’s foreign debt increased

As of December 31, 2010, Georgia’s foreign debt – credits taken by state guarantee - had reached USD 3 bln 936 mln 882 000. This represents a sharp increase of 16.4% on the previous year. On December 31, 2009 Georgia’s foreign debt stood at USD 3. 392 bln. Independent analysts have been repeatedly expressing their concern about this risky trend as it is very dangerous when foreign debt increases at a higher speed than that of the GDP of the country.

There is a possibility that starting from 2013 Georgia should have be paying more than USD 800 mln to service its debt. In this case, Georgia would have no option but to acquire further loans.