31.Mar .2022 13:00

Does Domestic Debt Of 600 MLN Have Impact On The Inflation?

Does Domestic Debt Of 600 MLN Have Impact On The Inflation?
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Governor of the National Bank of Georgia Koba Gvenetadze declares, that domestic debt of GEL 600 million will not have an impact on inflation.

"I do not think that it is an additional pressure. The government borrowed more than $ 600 million in domestic debt. Domestic debt is very important for the development of capital markets, therefore, I welcome the wider use of domestic debt as a source of deficit financing, as it will be the basis for the further development of the capital market.

As for the growth of refinancing loans, the interest rate is important for us in the case of inflation targeting. If you want to get a less refinancing loan, you have to increase the interest rate. This is what affects the market and it is the operating rate for us. Therefore, I do not see any risk in this regard", Gvenetadze said.