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Treasury liabilities increase

By Messenger Staff
Tuesday, May 18
The Ministry of Finance continues to issue treasury liabilities, and analysts think that this is directly connected with the elections, as the ruling party is now short of money as a result of financing social projects to please the population.

The treasury liabilities were issued in August 2009 and there were two more issues before the end of the year. GEL 270 million in liabilities were issued in total last year, and in the first quarter of 2010 the Ministry issued an extra GEL 135 million, a further GEL 90 million being issued at the beginning of May. The Ministry only planned to issue GEL 350 million worth in 2010, meaning that 60% of these have already been issued.

Financial analyst Davit Narmania thinks that the ruling party uses the money it raises by issuing treasury liabilities to finance social projects. He also finds it interesting that 86% of these liabilities have been accumulated in Georgia’s three biggest banks: Bank of Georgia, TBC Bank and Bank Republic.