Russia and Georgia, along with six other countries, have resolved their financial obligations.
Georgia Settles Long-Standing Debts with Seven Countries
Georgia has made significant strides in settling its financial obligations, marking the end of a debt burden that dates back to its early post-independence years. According to the Georgian Ministry of Finance, the country has paid its long-standing debts to seven countries, including Russia, Armenia, Azerbaijan, Turkey, the Netherlands, Kazakhstan, and Iran.
The repayment of these debts began in 2011, although the exact starting date of these payments is not explicitly stated in the available search results. Notably, Georgia has paid off the remaining $3.9 million owed to Russia, a debt that had been publicly recorded since 2003.
The composition of Georgia's creditors has shifted over the years. While Russia, Armenia, Azerbaijan, and others were previously significant creditors, France now holds the largest share of Georgia's debt, amounting to $851 million.
The repayment of these debts does not necessarily indicate that Georgia's economy is in a better financial situation overall. In fact, as of August, Georgia's overall public debt has risen to $9 billion. This increase in debt does not affect the remaining debts that Georgia may have with other countries.
The debts that Georgia paid originated in the turbulent years following its independence. At that time, Georgia's total external debt stood at $1.5 billion, with $157 million specifically owed to Russia.
The Azerbaijani state outlet APA reported that the total amount Georgia owed to Armenia and Azerbaijan was around $1 million combined. The repayment of these debts does not provide insight into the terms or conditions under which they were restructured or repaid.
It is also unclear how these debt repayments may impact Georgia's relations with the countries from which it paid debts, such as Russia or Armenia. Further analysis and discussions with diplomatic officials may provide more clarity on this matter.
The debts were formally restructured in 2004, and the repayment process has been ongoing since then. The regular payments of Georgia's monetary claims began after the year 2011, and the country is now free from these early post-independence debts.
This settlement marks a significant milestone in Georgia's financial history, demonstrating the country's commitment to addressing its financial obligations and moving forward towards a more stable economic future.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
