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The News in Brief

Wednesday, September 16
Foreign Minister assesses Georgian delegation’s visit to China as successful

As Georgia’s Foreign Minister Giorgi Kvirikashvili has declared, the Georgian delegation’s visit to China was very successful.

As Kvirikashvili has told reporters, a meeting with the Chinese PM was very positive.

“The Chinese side expressed readiness for carrying out large investments in Georgia. The PM put an emphasis on significance of the region within the framework of the new project which implies regeneration of the Silk Road. According to him, China will support Chinese companies to take part in the project which is of utmost significance and can change the level of Georgia’s infrastructural development,” Kvirikashvili has said.

According to him, many meetings were held with different financial institutions of China. They expressed readiness for financing large projects and showed interest in several projects presented by the Georgian side.

“In general, it was a very successful visit,” Kvirikashvili concluded. (IPN)

Georgia’s capital Tbilisi to have a comprehensive land use master plan for the first time

The winner (a large international consortium) of the competition aimed at the creation of the basic document of the capital’s spatial-territorial development management has been revealed.

The City Government was consulted by the international consulting company "PWC". Tbilisi Mayor and the Company "PWC" officials have briefed the Georgian Prime Minister Irakli Gharibashvili on the report about the competition today. The head of the government welcomes the large companies’ interest towards the competition announced to set up a land use master plan and considers it important that Tbilisi will have a comprehensive document of the capital’s spatial-territorial development management for the first time in its history. 11 large consortiums took part in the above-said international competition and one of the best ones was chosen. Tbilisi Mayor David Narmania will name the winner. (

Public external debt 1992-2015: Key data

External debt is an expensive resource, which creates a fiscal burden not only for today’s taxpayers but also for future generations. It is important that the public knows what use these resources are put to. Hence, Transparency International Georgia analyzed key data on external debt, which the state (the GoG and the National Bank) has taken on in 1992-2015:
• Between 1992 and 1995, the state borrowed the equivalent of USD 6.65 billion in a variety of currencies;
• The state has most frequently borrowed from the World Bank (79 agreements);
• In total, the state has borrowed the most from the International Monetary Fund (USD 1.57 billion);
• Between 1992 and 2015, the largest loan the state took out was from the International Monetary Fund (SDR 741.1 million, with the equivalent of SDR 577.1 disbursed). It was borrowed in order to support the National Bank and the budget;
• Between 1992 and 2015 the highest interest rate (8.2%) on a foreign loan was for the rehabilitation of energy infrastructure. The loan was for a guaranteed sum of USD 18.1 million in 1994 and made by the EBRD;
• The weighted average interest on public external debt is 1.9%;
• Assuming that the state will not take on any more external debt, the final loan will be paid off in 2052 - the May 31, 2012 KfW Credit for Rehabilitation of Municipal Infrastructure in Batumi.

The public external debt, for the moment, does not represent a threat to macroeconomic stability. Together with domestic debt, it is in line with the requirements of the Economic Freedom Act, which is based on the Maastricht Criteria. Despite this, raising funds through external debt is expensive and increases the fiscal burden on today's as well as future generations of taxpayers. Hence, we believe it is important that the public has key statistics about external debt. (