Georgian foreign debt increases

In July Georgian foreign debt increased by USD 118 million and at the moment it is well over USD 3.5 billion, which is around GEL 6.5 billion. Analysts express their concern that soon servicing the foreign debt will require up to 26% of the budget. 2013 will be the most tough for the Georgian budget as GEL 1.3 billion foreign debt must be repaid. Clearly the situation is rather serious, although the ministry of finance, together with the national bank assure the population that the situation is under control. Let's hope this is true.