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Georgia’s foreign loans doubled since Rose revolution

Friday, November 26
Economic analysts consider that one of the most serious problems for the country is its increase in foreign debt. More alarming is the fact that, in incurring these debts, the economic and social conditions of the population has not been significantly improved. In January 2004 Georgia’s foreign debt stood at USD 1.85 bln, but by the start of 2008 the debts had increased dramatically. By October 2010, Georgian debt had almost doubled reaching today's figure of USD 3.83 bln. Analysts think that the tendency is alarming that, even though it has not so far exceeded international standards, the results of these loans have not yielded any positive outcome. They did not go into industry, agriculture and other sectors and did not improve the welfare of the population.