Georgian finance minister Lasha Khutsishvili on November 17 said reducing the country’s external debt, which currently stood at $22.3 billion, was among the government’s priorities.
Presenting next year’s budget in the parliament, the official said financial bodies would take on more internal debt – obtained by issuing treasury bonds and treasury obligations – to keep external debt at a “safe level” and further curb it.
Responding to criticism on the preference of the “more expensive” internal debt, he told lawmakers external debt was also related to currency risks.
“Interest rates are increasing due to the globally tightened monetary policy, which increases the cost of servicing these credits”, he said, adding that in contrast, interest rates in the Georgian national currency were decreasing and cited results in recent auctions as evidence.
The government has plans to take on GEL 3.6 billion ($1.3 billion) in debt next year, of which GEL 1.4 billion ($511 million) will be internal and GEL 2.2.billion ($802 million) external. This would mark an increase by GEL 100 million ($37million) in the former and a reduction by GEL 100 million in the latter. (Agenda/Business World Magazine)