Georgia asks to speed up signing of new agreement on debt restructuring

Business Materials 2 December 2005 17:27 (UTC +04:00)

The Georgian Finance Ministry notified the Azerbaijani Finance Ministry of its readiness to sign new agreement on restructuring of its debt to Azerbaijan, Trend reports. The letter says that authorization for signing of the agreement has been given. The document was initialed in autumn within the visit of Zurab Nogadeily, the Georgian former Finance Minister, to Azerbaijan.

The total debt of Georgia to Azerbaijan comprises $16,189,573. In accordance with the agreement, concluded in 2003, Georgia was due to start fulfillment of the liabilities on $12,951,658 consolidated debt from March 2004, while the payment of $3,237,914,000 unconsolidated part was due to start from June 2005.

The delay was related to personnel shift at the Georgian parliament. Meanwhile, the sides achieved agreement on the next restructuring during the second visit of Zurab Nogadeily as Prime-Minister in 2005.

In accordance with the new version, the debt will be paid as following: payment of $3,239m will be carried out from 2007 to late 2021, $2m - just after the agreement come into effect - late 2006, the rest part - from 2010 to 2025. The debt accumulated as a result of trade transactions from 1992 to 1994.