Finance Minister recent developments and future
By Messenger Staff
Monday, April 27
The Minister of Finance of Georgia, Ivane Machavariani, visited a TV show Forbes Kvira and talked about recent developments.
"The government has managed to save GEL300 million only from current expenses, such as business trips, check in Georgia, various events that can no longer be held, etc. The main burden falls on these measures, which cannot be carried out.”
“In total, we are talking about savings from 700 million to a billion. If we are forced to extend the restrictions for a long time, more will be saved” added Machavariani.
Machavariani explained that the Georgian state does stop paying the foreign debts under the Coronavirus pandemic. According to him, $1.5 billion remains in the country after attracting funds from international financial institutions and paying off debts. The government will use the money for the purpose of the anti-crisis plan, which was presented by Prime Minister Giorgi Gakharia on Friday.
“Georgia's debt is growing, and we may even approach 60% of GDP. However, compared to the results from other countries, we may be happy about it. This is a natural and adequate event, although uncomfortable,” said Machavariani.
He added that in case the situation gets worse, debts should still be paid, explaining that the Coronavirus has shown us that it is necessary for small companies to have their data open and transparent so that the state does not have to work twice as much in such situations and for it to be able to help them purposefully.
The virus has affected the world’s economy, with many saying that the outcome of it might be worse than the 2008 world financial crisis.
