Georgia’s external loans
By Messenger Staff
Monday, August 3According to the figures of June 30 Georgia’s foreign debt is now nearly USD 3 billion. GDP amount to around USD 11. 5 billion, and if we add to already existing loan the USD 420 million and USD 300 million due to be allotted by the IMF and Asian Development Bank Georgia’s foreign debt will top USD 3.7 billion.
When the new loans arrive Georgia’s foreign debt will equal 32% of GDP. This is a serious figure giving grounds for concern. We should also consider that due to the current Georgian economic situation it is highly probable that more loans will be taken and the consequences could become even more alarming.
Most of the foreign loans have been taken to cover budgetary liabilities and very little of them has been invested in industry, agriculture or other fields which could eventually yield some return. Therefore Georgia will be left with nothing to pay back its loans with except more loans.