Georgia reveals structure of its foreign debt

Finance Materials 8 December 2020 12:54 (UTC +04:00)
Georgia reveals structure of its foreign debt

BAKU, Azerbaijan, Dec.8

By Tamilla Mammadova – Trend:

Georgia's budget will grow by 2.46 billion lari ($745.1 million) next year, Trend reports via Georgian media.

The main source of financing the increased expenses will be the new debt, which is set at 5.27 billion lari ($1.5 billion). Including, $1.45 billion will be spent on investment infrastructure projects from the new debt, while $2.17 billion on loans to support the budget. However, the government plans to refinance Eurobonds worth $500 million with 1.65 million lari ($499,772).

According to the draft budget, 100 percent of the 5.27 billion lari ($1.5 billion) debt will be foreign debt, and next year the government will not take domestic debt, i.e. there will be no release of treasury notes and bonds.

The government's decision is likely to avoid raising debt to a critically high level, as Georgia's state debt will exceed 60 percent of GDP in 2021, - however, the government promises to gradually reduce the debt level to 57.6 percent of GDP by 2024.

Georgia will borrow new debts from:

1.French Development Agency (AFD) in the amount of 172 million lari ($52.09 million);
2.German Reconstruction Credit Bank (KfW) - 229 million lari ($69.3 million);
3.Asian Development Bank (ADB) - 162 million lari ($49.06 million);
4.Asian Development Bank (ADB) under the Sustainable Development Program for the Sewerage and Sewerage Sector - 271 million lari ($82.08 million);
5.The European Union (EU) under the Macro-Financial Assistance (MFA) IV program - 286 million lari ($86.6 million);
6.The Asian Development Bank (ADB) under the Fiscal Sustainability and Social Security Program - 663 million lari ($200.8 million);
7.The German Bank for Reconstruction and Development (KfW) under the Social Security Program in the context of the COVID-19 pandemic - 57 million lari ($17.2 million);
8.The Asian Development Bank (ADB) under the GSE Corporate and Energy Market Reform Program - 331 million lari ($100.2 million);

By late 2021, the structure of Georgia's foreign debt will be as follows:

• The World Bank (WB) - 6.68 billion lari ($2.02 billion);
• The Asian Development Bank (ADB) - 6.26 billion lari ($248.6 million);
• The European Investment Bank (EIB) - 2.79 billion lari ($845.07 million);
• The European Union (EU) - 820.89 million lari ($248.6 million);
• The European Bank for Reconstruction and Development (EBRD) - 781.27 million lari ($236.6 million);
• The Asian Infrastructure Investment Bank (AIIB) - 721.07 million lari ($218.4 million);
• The International Monetary Fund (IMF) - 694.27 million lari ($210.2 million);
• The International Fund for Agricultural Development (IFAD) - 128.87 million lari ($39.03 million);
• The Council of Europe Development Bank (CEB) - 12.02 million lari ($3.6 million);
• The Scandinavian Environmental Finance Corporation (NEFCO) - 8.71 million lari ($2.6 million).


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