- China Nears Global Reserve Status: “There Will Be a Reset of the Financial Industry” 2015-05-29 11:26
- Stocks Began Falling Right At This Time Of The Year Just Prior To The Last Financial Crisis 2015-05-29 00:32
- Rand Paul: ‘Disingenuous’ Obama Can Stop NSA Spying Any Time He Wants 2015-05-26 22:11
- Wealthy Installing “Safe Rooms” to Prepare for Civil Unrest? 2015-05-26 21:34
- Obama Usurps Local Police With Fake “Ban” on Militarization 2015-05-26 21:28
- RIP: Over 100 newspapers dumped in year, ads down 50%, circulation hits bottom 2015-05-26 01:36
New loans – new hopes2010-03-19 14:36
Georgia continues its way down to the abyss of debt. This time the republic was granted a EUR 180 mln loan from the European Bank for Reconstruction and Development (EBRD) for construction of a high-voltage electric transmission line and relocation of railway station and rail facilities outside the capital. Though President Mikheil Saakashvili calls these projects history-making, Georgia's foreign debt approaches USD 4 billion figure.
Not long ago Georgian Ministry of Finance reported on 30.8% increase in the country's foreign debt over last year standing at USD 3.5 billion. Georgia's overall debt on bilateral loans has grown too: now it's USD 553 mln compared to 537 mln with USD 118 mln as Tbilisi's debt to Moscow. GeorgiaTimes has already mentioned tendencies in Tbilisi's accumulation of foreign debt. In 2008 the debt totaled USD 2.5 bln increasing by half a billion a year later. Then Georgia's debt to the donors grew to USD 3.5 bln.
It seems Tbilisi is not going to stop here. As we know in March the International Monetary Fund's board of governors plans to negotiate a USD 150 mln credit facility to the republic. Georgia will get a slightly bigger amount from the EBRD.
According to official information, the EBRD has invested over EUR 700 mln into the country implementing 120 financial, corporate, infrastructure and energy projects over the whole period of the bank's activity, PRIME TASS reports.
Late in February the bank's board of directors adopted a new 3-year strategy for Georgia promising to help minimize negative consequences of the economic crisis and support economic reforms the country is pursuing. Also the bank outlined two main areas of activities in this post-Soviet republic. On one hand this is strengthening of Georgia's financial sector with the help of capital inflows sufficient for resumption of lending activities by banks. On the other hand it's promotion of projects on modernization of decrepit energy and transport infrastructure in the republic. "Importance of transport infrastructure upgrade will enable the country to take advantage of its geographic position as a major transit link between South Caucasus, Central Asia and Europe". - the EBRD official statement runs.