Georgia’s faces 10 billion GEL debt

Georgia has amassed a 10 billion GEL debt, which has increased by about 1 billion GEL in the past six months.

Figures released today revealed as of June 30, 2014 – the end of the first six months of the year – Georgia had a total debt of 9.5 billion GEL.

This was about 1 billion GEL higher than the debt recorded at the end of 2013. Figures from the end of last year showed Georgia had a debt of 8.6 billion GEL.

Meanwhile, the latest information revealed 2.4 billion GEL was regarded as domestic debt while the majority of debt – 7.2 billion GEL - was foreign debt.

According to the Finance Ministry, in the first six months of this year, about 383 million GEL was directed on reducing its debt and covering the cost of interest.

As for Georgia’s external debt, from January to June this year about 250 million GEL was directed towards this debt and 69 million GEL was spent for on the interest.

The information released today showed over the past six months, the 2014 budget income plan had not been completed. The following report had already been presented to Parliament and from today, relevant committees will begin to review it.

The information revealed numerous reasons why the budget income plan was incomplete, including grants, other incomes and decrease of financial assets, including the increase of liabilities.

Overall, 155 million GEL was missing from the budget income plan and 53 million GEL was missing from grants. Other incomes saw a reduction of 6 million GEL and due to the increase of liabilities, 176 million was reduced from the budget.