Page 29 - GEORptFeb20

trade. Accordingly, the share of illegal trade may increase. This process has already begun in recent years. Illegal trade and consumption on the lower-end products have reflected in our sales,” he said.
Zoidze added that consumers were obtaining raw tobacco, which is seven to eight times cheaper than imported cigarettes, but was not subject to quality checks. Smuggling and use of raw tobacco would significantly affect the government’s budget, the lawmaker noted.
Cigarette prices increased by an average of 50 tetri ($0.19/€0.16) in Georgia following amendments to the tax code that came into play on January 1.
6.2 ​Debt
Georgia - Gross external debt
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Gross external debt ($ mn)
16,756 16,959 17,319 17,809 17,461 17,299 17,811 17,816 18,224 17,792
2011 2012 2013 2014 2015 2016 2017 2018
Gross external debt (% GDP)
81.2 84.6 83.2 84.7 109.4 110.7 106.4 101.3
source: CEIC, World Bank
Citigroup interested in financing Georgia’s public debt
American investment bank Citigroup is interested in investing in financial markets development in Georgia and is willing to buy a volume of the securities issued by the country’s treasury, the bank’s vice chairman Jay Collins said at a meeting with Georgian Prime Minister Giorgi Gakharia at the World Economic Forum in Davos.
Citigroup would discuss with the Georgian government engagement in the process of budget expenditure digitisation using modern accounting and payment systems and share its experience in the field, according to a government release.
The bank also expressed its willingness to participate in refinancing the government's EUR-denominated securities, amounting to €500mn, in 2021.
“There was a great conversation with the Prime Minister of Georgia. We talked about economics and technologies, specifically the technologies used in the government sector for efficiency and effectiveness. We discussed investments and ways in which Georgia could attract more capital investment. We also talked about the financing strategy and the financing of processes in the global markets. Overall it was a brilliant meeting. It makes us happy about everything that is happening in Georgia,” said Citigroup’s Collins after meeting Gakharia.
The gross external debt of Georgia amounted to $18.2bn as of second quarter of 2019, rising from 17.8bn in the previous quarter. External debt averaged $11,420.4mn from 2007-2017, ​according to the National Bank of Georgia. It accounted for 109.6% of GDP. Gross external debt include both public sector (general government, public corporations and national bank) and private sector (banking and other sectors) external debt.
29​ GEORGIA Country Report​ February 2020 ​ ​www.intellinews.com