Gov't considering Eurobond issue to manage public debt
The amount of the external debt of the Georgian government borrowed within the last eight years amounts to 13.3 billion GEL, thus the total amount of the government’s external debt is now three times more than it was eight years ago. Photo: Nino Alavidze/Agenda.ge.
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In order to effectively manage public debt, the Georgian government is preparing for the issuance of a new Eurobond, announces Georgian Prime Minister Irakli Garibashvili.
Garibashvili noted that in 2011, Georgia placed $500 million in eurobonds on the London Stock Exchange with a maturity of 10 years, the principal of which comes due in April 2021. He said that in order to repay the principle of the existing eurobond, it is necessary to attract financial resources by issuing a new eurobond.
To effectively manage debt – which means reducing the refinancing risks in the government debt portfolio, to repay the existing amount of the existing eurobond – it is necessary to attract financial resources by issuing a new eurobond and we are preparing for this process", said Garibashvili.
The amount of the external debt of the Georgian government borrowed within the last eight years amounts to 13.3 billion GEL ($4.01 bln/€3.32 bln), thus the total amount of the government’s external debt is now three times more than it was eight years ago.
As of August 2020, government external debt amounted to 19.9 billion GEL, while it was 15.7 billion GEL as of December 31, 2019.
Government external debt amounted to 3.2 billion GEL by the end of 2003 and by December 31, 2012 it had increased to 6.6 billion GEL, more than doubling in nine years.
The gross external debt of Georgia amounted to $19.7 billion as of September 30 which constituted 120.4 percent of the last four quarters' gross domestic product, says the National Bank of Georgia.
The amount of the external debt of the Georgian government borrowed within the last eight years amounts to 13.3 billion GEL ($4.1 bln/€3.5 bln), thus the total amount of government’s external debt is now three times more than it was eight years ago.
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The European Bank for Reconstruction and Development (EBRD) has marked a historic milestone by issuing its first-ever Eurobond both denominated and settled in Georgian lari (GEL).
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Georgia has officially announced the placement of $500 million Eurobonds on the London Stock Exchange, announces the Ministry of Finance of Georgia.
The Ministry of Finance of Georgia has completed the placement of $500 million Eurobonds on the London Stock Exchange with a maturity date of five years and a coupon rate of 2.75%. Georgian Finance Minister Lasha Khutsishvili says the state budget of Georgia will save about 350 million GEL thanks to the low coupon rate.
The government of Georgia has taken on internal debt of 35 million GEL as a result of the sale of 5-year securities, announces the National Bank of Georgia.