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Foreign loans in 2014

By Messenger Staff
Tuesday, January 28
The Georgian government will take more than 1 billion GEL in foreign loans in 2014. The government is taking this step for improving the complicated situation of the economy in the country. By the end of 2014, Georgia’s foreign loan will reach 8 billion GEL.

Georgia’s largest loan comes from the World Bank (3.3 billion Gel). Meanwhile Georgia pays back certain loans as well as money for servicing these loans: 1.1 billion GEL as the main loan and 658 million GEL as an interest rate.

In the next four years, the country will take an extra 2.8 billion GEL in foreign loans.

During Mikheil Saakashvili’s presidency the country’s foreign loans increased rapidly. When the Rose administration came to power in 2003, Georgia had accrued approximately $1.5 billion USD in foreign loans. During his nine years in office, the aggregated loan total of the country came over $13 billion USD.

However, economists assure that the country is controlling the foreign loan proportion to GDP, which is important for economic stability.