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Saakashvili is going to borrow money from the banks for social needs

2009-06-03 18:00

Another former Minister of Economic Affairs Lado Papava also thinks it inappropriate of the Georgian government to issue treasury bills to the amount of 250 million. "Our economics does not need that; this is no solution to the problem", - he declared to the Commersant radio station. Papava is also afraid that the banks will cease granting loans to the private sector. Besides, there is a risk of financial pyramids.

Perhaps, one should take into account the opinion of the state finance experts, who are warning the government against issuing treasury bills, especially that there is still an alternative, according to Khaduri and Bendukidze. In February, the government already announced its intention to pull in the belts. As to the state expenditures, they have never been reduced. Former deputy and expert on economical issues Shota Gvenetadze thinks it is time to reduce inexpedient expenses to the maximum without jeopardizing the pension and salary payments.

 

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Salome Batiani

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