BAKU, Azerbaijan, June 2
By Tamilla Mammadova – Trend:
The limit on public debt was 39.8 percent of GDP by the end of 2019 in Georgia, Trend reports citing the annual report of Georgian parliament.
As reported, in 2019, foreign direct investment completely balanced the current account deficit.
The balance of net foreign direct investment exceeded the current account deficit and amounted to 5.6 percent of GDP. Meanwhile, the debt-financed deficit was negative.
“In 2019, the volume of foreign direct investment amounted to $1.26 billion, which is 7.1 percent of GDP. The reinvestment rate has also increased significantly. In 2019, the volume of reinvestment increased by 40.1 percent and amounted to $612.5 million. The reinvestment share in the total volume of foreign direct investment amounted to 48.3 percent. The increase in reinvestment clearly indicates investors' positive expectations regarding Georgia," the report said.
As reported, important steps have been taken to improve public debt management policies and ensure transparency. Debt management is carried out in accordance with the state debt management strategy for 2019-2021.
Georgia is also expanding its potential as a regional center and continues to consult with development partners on the financing of investment projects in Georgia and the opening or expansion of local representative offices, said the report.
"Georgia is working with donors to attract grants and long-term soft loans to finance various priority investment projects," the annual report said.
According to the report, 15 loan and grant agreements totaling about 900 million euros were issued during the reporting period.
The document also refers to the external debt of Georgia.
“As of April 30, 2020, the portfolio of public external debt is 79 percent of total public debt. Most of this resource was received from multilateral and bilateral donors to finance priority projects envisaged by the Georgian government,” the report said.
During 2019, two international rating companies upgraded Georgia's sovereign credit rating. In particular, Fitch and S&P upgraded Georgia's credit rating to stable (BB).
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