Georgian gov’t plans to take 4.4 bln Gel foreign debt

The Georgian government may take 4.4 billion Gel foreign debt, according to the draft of the 2022 state budget. The budget draft says that 3.1 billion of the 4.4 billion Gel will come from foreign donors, while the remaining 1.3 billion Gel will be an internal loan. 

 

Earlier this year the government refused to take the second tranche of the EU’s 150 million euro loan, which caused controversies in the country and abroad. 

 

The opposition claimed that by the decision the Georgian Dream government ‘betrayed’ the country’s European course. 

 

The EU said that the loan could not have been allocated at all as the Georgian government ‘has not yet taken genuine steps to improve issues in the country’s judiciary, increase its accountability and quality.’ 

 

Georgian Prime Minister Irakli Garibashvili claimed that the reasons behind the refusal were the ‘positive moves in the state economy and the government’s intention to gradually pay the country’s more than 20 billion USD foreign debt.’