As a result of the agreement reached between the Government of Georgia and the International Monetary Fund, the Government of Georgia, in response to its economic crisis, plans to borrow more in the coming years than previously planned.
As a result of the mobilization of new debts, Georgia's public debt will exceed 60% of the GDP mark set by law. Debt levels should come down below 60% by 2023. According to the International Monetary Fund, at present, public debt is 58.65% of GDP.
Negotiations between the IMF mission and the government took place on November 5-9, and it was agreed that the government would plan a budget according to a 7.6% deficit in 2021 instead of 5.1%.
Bm.ge asked the Minister of Finance how the Georgian government managed to convince the IMF that the foreign debt shall exceed 60%?
"It was not difficult to convince the IMF because the IMF is a very rational organization. Especially rational and important during crises. They are well aware of the level and scale of the crisis in the world. "There have been no difficult negotiations because they know for sure that in terms of socio-economic growth, it would be important to increase costs, increase the deficit, which in itself causes an increase in debt," - said Vano Machavariani.
