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Lari has run out of credit2011-07-22 14:35
Where there is no trust there is no love and future. It is a poor country if its citizens doubt their own economy and currency, preferring to make savings in foreign notes. Gallup, a famous American organization studying public opinion, has found out that the Georgians treat lari with suspicion. Only some part of Sakartvelo citizens believes that this is a stable and reliable monetary unit, in which one's precious earnings may be stored.
It is no secret the Georgian economy is balancing on thin ice, ready to fall down every moment. It will hardly avoid this falling: the current government has taken too many credits and is going to leave too many debts to its successors. Soon, it will be time to pay back and Tbilisi will only be able to run into new debts and take tougher credits or put up with a complete collapse of the economy. If every creditor asks for his money, the country will simply run out of cash and only God knows what will happen to the national currency.
No wonder Georgians are losing trust in lari, feeling the danger. A currency that can be used solely within Sakartvelo will hardly be a lifebelt. If lari rate collapses, which is quite probable considering a huge state debt and Georgia's total inability to produce anything for which real money can be paid, poor citizens of Sakartvelo will face the risk of falling beyond the poverty line completely and irreversibly.
There is nothing surprising in the fact that the Georgian citizens prefer storing their precious savings not in doubtful laris but in more or less stable dollars and Euros. Mostly in dollars, of course - over 70 percent of Georgian deposits have been made in this currency. Neither do the people change their opinion in the context of dreadful rumours about a default that is going to break out any minute in the United States.
As was reported by Gallup researchers, Sakartvelo goes second among the former Soviet countries in mistrust in its own currency. Byelorussia goes first, of course, but Tbilisi should better not console itself with this fact, thinking that it is succeeding against the background of Minsk. As is known, the Old Man's country is currently seized with real default, economy is stuck; it is practically impossible to buy currency and local money is losing price day by day. Nevertheless, 22 percent of Byelorussians stubbornly prefer to keep their savings in local currency.