Problems with servicing foreign loans

During the previous administration, the taking of foreign loans became traditional for the country’s leadership to cover its often irresponsible expenditures. Moreover, new foreign loans were taken for paying back previous ones.

But all loans need to be paid back as well as the servicing amount for these loans. It had been known for some time that in 2013, the servicing amount for the loans reached to over half a billion GEL. The figures are not catastrophic so far, but if the tendency of taking extra loans is not balanced and subordinated in association with a logical state budget, the country could face further problems in the future.