21.Sep .2021 14:30

Gov’t Borrowed € 45 MLN From The EIB In August, While Refused A Loan Of € 75 MLN From The EU

Gov’t Borrowed € 45 MLN From The EIB In August, While Refused A Loan Of € 75 MLN From The EU
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The Ministry of Finance has published statistics of new foreign debt. According to the report, the public external debt made up $ 8.05 billion by August 31, 2021.

The volume of public debt increased by 45 million euros in August compared to the previous month. More specifically, the debt increased by 45 million in relation to the European Investment Bank (EIB), from which Georgia supposedly received a new tranche of debt in August.

On August 31, 2021, Georgia has refused EUR 75 million loan from the European Union, conditioned on the court reform and upholding EU-brokered April 19 deal, citing the government attempts to reduce foreign debt and avoid political insinuations.

The fact that Georgia received the EIB $ 45 million tranche in August without any problems underscores the fact that the "refusal" of EU macro-financial assistance was a political move and it had nothing common with "debt reduction".