Internal loans increase in Georgia

The Georgian Government issued another portion of the state’s treasury bonds. So far, the National Bank of Georgia already sold a large portion of treasury bonds. As a result of these operations, the country received an extra 334 million GEL of revenues into budget, therefore, the state’s internal loans increased by the same amount of GEL. The government plans to take an internal loan for more than 1 billion GEL in 2012. Analysts ask why the state is doing so and is searching to find some answers. They suggest that there is big deficit in the state budget. The state needs extra money to cover various expenses, infrastructure projects and other activities and as some analysts suggest covering socially-oriented projects targeted for attracting voters in the elections. Analysts warn state officials to take extra loans instead of developing the economy is a risky move which could bring the country’s economy into collapse.