“The most important thing is not to waste this money in vain”, - economic expert Roman Gotsiridze so responded the issue of $500 million Eurobonds.
“The Government of Georgia placed $500 million in Eurobonds on the London Stock Exchange, annual coupon rate amounted to 2,75%. This is not a bad result, but I have some remarks.
This rate would be good if the maturity of Eurobonds was 10 years instead of 5.
It is a mistake not to place Eurobonds for 10 years (like in Armenia). After five years we will definitely have to take a new loan to repay this loan and then there will be no such favorable conditions. The cheap money boom in the world is due to many reasons, including the pandemic crisis. The governments and central banks are allocating huge resources to stimulate the economy worldwide, which creates a very low-interest rate on the market.
Now the main thing is not to waste this money from the budget in vain. The National Bank must tighten its generous credit policy, which can become the reason for GEL depreciation and reserves’ expenditure," Roman Gotsiridze notes.
