14.Oct .2020 11:00

IMF: debt of the Georgian government will achieve 59% of GDP in 2021

IMF: debt of the Georgian government will achieve 59% of GDP in 2021
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The International Monetary Fund (IMF) published a new report. According to the report, the debt of the Georgian government will achieve 58.79% of GDP in 2021. The rate is 0.12 percentage point higher comparing to 2020.

However, the Government of Georgian has different expectations, as they predict debt reduction towards GDP next year.

According to the document attached to the draft budget of 2021, debt ratio towards GDP achieves 57.9% in 2020 and it will be reduced to 55.9% in 2021.

However, the IMF forecasts debt growth instead of decline. It should be noted, that the IMF and the government expect 5% growth next year.

As for the total debt ratio, the debt increased by 8 billion GEL in 2020 and achieved 29.26 billion GEL. The IMF evaluates that the government’s debt volume will increase by an additional 31.75 billion by 2021.

The government plans to spend 17.07 billion GEL in the next year, which is 1.1 billion GEL more comparing to 2020.
According to the Deputy Minister of Finance of Georgia, Giorgi Kakauridze, the main reason for that is a repayment of Eurobonds, the service term of which expires in April 2021 for the state.

"Debt repayment takes a large part in the budget increase. This sum is to repay Eurobonds issued in 2011. Next year we plan to borrow a total of 3.2 billion GEL, at the same time the budget also provides for the repayment of a debt of 2.6 billion GEL. Respectably, growth of a new debt amounts to 530 million GEL", Giorgi Kakauridze declared.