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year, which will provide target indicators on how to change the ratio between the government's domestic and foreign debt.
The share of external debt will be around 71.7% by 2024, under the document, according to the chairman of the committee Irakli Kovzanadze.
"In the end, the desired ratio is 40%, but in the medium term we will have a target to reduce the share of foreign debt in the total debt portfolio to 60%," said Kakauridze.
"By the end of the year, we will have a new debt management strategy for 2022-2025, and it will take into account not only the reduction of the debt-to-GDP ratio but also the redistribution of debt between foreign and domestic debt. Our primary goal will be to reach 60% (external debt ratio), although this is impossible to achieve even in a 4-year period.
"The deficit is problematic, we want to reduce it. Zero deficit will probably not be acceptable for our current economy, but if we bring the deficit in the range of 2-2.5% [by 2024], it will be a really optimal option, but it is impossible to do it in 2022," said Giorgi Kakauridze.
6.2 Debt
Georgia - Gross 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 external debt
Gross external debt ($ mn)
17,825 18,242 17,900 18,631 18,326 18,880 19,662 20,285 20,592 20,630
2013 2014 2015 2016 2017 2018 2019 2020
Gross external debt (% GDP)
78.2 79.4 102.7 105.1 106.4 101.4 106.9 129.6
source: CEIC, World Bank
Georgia’s gross external debt up by $22.6mn in Q1
Georgia currently owes $20.6bn in external debt, and this amount is growing, the National Bank of Georgia (NBG) said on June 30. During the first quarter of 2021, the gross external debt of Georgia increased by $22.6mn.
37 GEORGIA Country Report November 2021 www.intellinews.com