Foreign loans burden
Wednesday, July 21According to National Bank of Georgia figures Georgia has taken foreign loans of USD 8.8 billion. This is equal to about 80 percent of the GDP of the country and is a very heavy burden. Servicing loans costs 4 percent of the state revenues at present. 2013 will be very tough as the country has to pay back some principal amounts as well as servicing costs.
The country also has internal loan liabilities. The National Bank has given financing loans to the commercial banks by issuing treasury liabilities. The result of these manipulations is that inflation has increased to 6 percent in 2010. All these figures indicate that the country has certain problems concerning loans.