Eduard Gardner: “Increased Foreign Debt Is One of the Biggest Challenges for Georgia”

One of the biggest challenges for Georgia is increased foreign debt. Representative of the International Monetary Fund Edward Gardner stated about it on November 9 during his visit in Tbilisi.

The IMF evaluated the economic situation of the region in October.

Gardner stated the foreign debt of Georgia makes 40% of Gross Domestic Product and added that Georgia has fewer problems because the country has taken loans only from international monetary institutions.

According to Gardner, the amount of the debt is not critical but it requires attention.

He added that education level of the Georgian society is high but they do not meet requirements of the labor market with their skills.

Representative of the IMF said the inflation issue is less urgent in Georgia. Relatively high inflation was observed in summer and high prices on products influenced the consumption basket.

According to the IMF prognosis, the inflation index of Georgia in 2012 will be 5%.

As for recommendations of the IMF to the Government of Georgia, the international organization believes that competitiveness shall be improved in the country, the flexibility of currency exchange rate shall be maintained and infrastructural projects shall be implemented.

Interprensews