Foreign debt increases

According to the data of April 30, 2009, Georgia’s foreign debt has reached USD 4. 628962 billion, which is USD 1.248168 billion more than in the same period last year. If before 2008 foreign debt was decreasing, since last year the picture has changed radically against the background of very slow GDP growth.

In 2008 the state took USD 500 million for Euro bonds. The August war forced the country to take USD 2.5 billion in extra loans. Currently the share of foreign debt in the GDP is 22%, not yet a critical figure but an unpleasant one, when we consider that in 2007 it was 16%.

Some analysts conclude that by the end of 2009 foreign debt might reach 30% of the GDP, which would be very close to a critical sum. Very serious, radical and professional moves should be taken to rescue the country from its current foreign debt position.