According to the data of the State Audit Service, the government of Georgia will spend record-high funds on serving the interest of the foreign state debt in 2023.
As of the financial report, in total, the budget will spend GEL 1.65 billion on foreign debt in 2023, which is GEL 380 million more compared to the same period of this year. GEL 1.17 billion will be transferred to the principal debt, and 480 million will be used for paying the interest.
The debt interest service fee increased by GEL 250 million compared to this year.
The State Audit Service notes that part of Georgia's foreign debt is at a fixed rate, while 47% of foreign debt is tied to a variable rate. According to the assessment of the audit service, in conditions when the monetary rates in the world are tightening, the interest service of the credits tied to the variable rate is at risk of increasing in price.
"It is worth noting that in recent years, the share of variable interest rate loans in the government's external debt is characterized by an increasing trend and as of August 31, 2022, it is 47%," the report of the State Audit Service states.
In the next year, the government will cover the internal debt of 2.4 billion, of which 1.74 billion GEL will be the principal debt, and 675 million GEL will be the debt interest. Compared to the previous year, debt interest service will cost GEL 150 million more.
In total, the state foreign debt of Georgia amounts to GEL 21.5 billion.
