16.Apr .2021 14:30

Budget to save 350 million GEL by the low-interest rate on new bonds – Finance Minister

Budget to save 350 million GEL by the low-interest rate on new bonds – Finance Minister
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The budget will save 350 million GEL by the low-interest rate on new Eurobonds, – Finance Minister Lasha Khutsishvili declared.

“New Eurobonds will significantly lower interest rate compared to Eurobonds issued in 2011, which amounted to 6.875%. The interest rate on new Eurobonds is 2,5 times low. Repayment of old debt was made on April 12.

In this case, specific budget savings are also important. In particular, the budget will save about 350 million GEL over the next 5 years due to the lower interest rate. Georgia's sovereign rating, which improved in the recent years, is one of the main factors of such a low-interest rate, " Lasha Khutsishvili said.

The Government of Georgia issued Eurobonds worth $500 million, which coupon rate amounted to 2.75%.