Page 52 - Small Stans and Causcasus Outlook 2022

5.4% and 4.7%, respectively, from the approved forecast for 2021.

The upper limit of the internal debt is set at AZN1bn; the upper limit of
foreign debt is set at AZN600mn; and the upper limit of the amount of
state guarantees is set at AZN800mn. It is planned to reduce the
foreign borrowing limit by 50.0% and the domestic borrowing limit by
15.4% in 2022.

5.0 Markets

5.1 Markets - Kyrgyzstan

N/A

5.2 Markets - Turkmenistan

N/A

5.3 Markets - Tajikistan

N/A

5.4 Markets - Georgia

Georgia’s government has used to a smaller extent the local debt market to
finance its 6.8%-of-GDP ($1.2bn) deficit in 2021, both because the public gap
narrowed from 8.4% of GDP in 2020 and because the foreign financing was
sufficient to allow the Treasury to avoid the rising financing costs on the local
market. The yields of the 1-year bills rose by 2pp to 10% at the end of 2021,
from around 8% one year earlier. Higher inflation and repeated interest rate

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