08.Oct .2020 11:55

The first draft of 2021 budget plans to repay 500 million USD in Eurobonds

The first draft of 2021 budget plans to repay 500 million USD in Eurobonds
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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 at the sitting of the Committee on Legal Affairs and Human Rights, where the first draft of 2021 budget was discussed.

To remind, the government submitted the first draft of its 2021 budget to parliament, together with the medium-term forecasts for 2021-24. It must pass three parliamentary hearings before it becomes law, and changes to the first draft estimates are in practice very frequent. Given parliamentary elections on October 31, 2020, the final draft will be discussed by a new parliament.