Problems in Georgian economy
By Messenger Staff
Monday, March 1
Some independent economists are drawing very grave conclusions about Georgia's economy. Davit Narmania thinks that in 2013 Georgia will still be one of the leading defaulter countries. He bases this opinion on the dramatic increase in Georgia’s foreign debt, which has reached almost GEL 6 billion and is projected to increase by a further 1.3 billion by the end of 2010.
Last year Georgia took out many more loans and although it plans to set aside some money for repaying them the amounts actually needed are rather large. In 2013 for instance Georgia will have to pay back GEL 760 million and an extra GEL 80 million will be needed to service new loans.
Opposition leader Zurab Noghaideli thinks that Georgia will need to spend 20% of its budget on paying back foreign loans in 2013 and this would be an unacceptable burden. Analyst Soso Archuadze thinks that taking out new loans to pay back previous ones show that the financial situation in the country is very serious. Official structures however challenge such approaches and think that the country can handle the situation.
Last year Georgia took out many more loans and although it plans to set aside some money for repaying them the amounts actually needed are rather large. In 2013 for instance Georgia will have to pay back GEL 760 million and an extra GEL 80 million will be needed to service new loans.
Opposition leader Zurab Noghaideli thinks that Georgia will need to spend 20% of its budget on paying back foreign loans in 2013 and this would be an unacceptable burden. Analyst Soso Archuadze thinks that taking out new loans to pay back previous ones show that the financial situation in the country is very serious. Official structures however challenge such approaches and think that the country can handle the situation.