19.Nov .2021 11:30

When Will Georgia Repay Its Debt to Russia and Armenia?

When Will Georgia Repay Its Debt to Russia and Armenia?
views 425
Back

The Ministry of Finance has published a new debt management document. According to the report, the government of Georgia will repay "historic foreign debt" in 2025. These funds include existing loans towards the former USSR republics and restructured loans at the Paris Club.

As of October 2021, Georgia owes Russia’s foreign debt of GEL 99 99.8 million ($ 31.6 million), while foreign debt towards Armenia totals to GEL 13.3 million (USD 4.2 million). It also owes USD 5.4 million in foreign debt to Kazakhstan.

According to the draft budget for 2022, next year the government of Georgia will repay Russia's foreign debt of GEL 24.3, of which GEL 20.8 million will be the principal debt and GEL 3.5 million will be the interest rate.

Debt to Armenia will be reduced by GEL 3.3 million next year. GEL 3.85 million is provided for debt service to Kazakhstan.

Georgia has been repaying its restructured debt to Russia for more than 17 years, up from USD 156 million in 2003. Debt to Armenia was USD 20 million during that period.

In total, the repayment of these restructured loans will be completed by 2025.