Georgia’s access to traditional sources of external financing is shrinking, according to financier and business advisor Nika Shurghaia, who spoke with TV program Analytics.
“It is clear that our traditional creditors, especially international financial institutions, no longer have the desire to lend to Georgia,” Shurghaia said. He noted that the Asian Infrastructure Investment Bank (AIIB), whose shareholders include Russia and China, remains one of the few active lenders.
Shurghaia also raised concerns about future borrowing on the open market. “In the case of free debt, such as Eurobonds, it will soon become clear what kind of appetite foreign creditors have for Georgia… I do not have good expectations in this area,” he added.
The financier emphasized that sustainable growth depends on economic freedom and a strong legal environment, but argued that both have been eroded in Georgia. “The constitution has been violated many times, and our courts deliver too many unfair decisions. For businesses, justice largely depends on influence and money,” he said, accusing the government of fostering a system resembling state-linked, crony capitalism.
For context, Georgia’s external debt stood at $9.04 billion as of August 1, 2024, down $103 million compared to the previous month, according to the Ministry of Finance.
