As reported by the government of Georgia, the limited volume of Georgia's government debt included 39.8% of GDP by the end of 2019.
The annual report presented to the Parliament says that the foreign direct investments in 2019 fully balanced the current deficit.
Following the government, in 2019, the balance of the foreign direct investments exceeded the current deficit and equaled 6.6% of GDP, while the debt-financed gap was negative.
"In 2019, the volume of foreign direct investments equaled 1,267.7 mln USD (7.1% of GDP). The reinvestment rate sharply increased. The volume of reinvestment increased by 40.1% in 2019 and equaled 612.5 mln USD, and its share of direct foreign investments totaled 48.3%," reads the report.
Following the report, the reinvestment growth means that investors have positive expectations for Georgia.
"Important steps were made to improve the debt management policy and ensure transparency," the report reads.
''The debt management follows the model developed for the years of 2019-2020 by the government,'' adding that 15 loan/grant contracts were signed about 900 mln EUR financial resource in the reporting period.
The document also refers to the external debt of Georgia.
"As of April 30, 2020, the portfolio of the foreign debt includes 79% of the total government debt,'' the report reads, adding the financial resource is received mainly from multilateral and bilateral donors/partners.
Two international rating companies increased the sovereign rating of Georgia: Fitch and S&P assessed the government debt credit rating as BB (stable).
Bela Gelashvili
News Author