Georgia reduced debts to Azerbaijan by 12.5%

The Ministry said that the debt amortisation has intensified recently.

Georgia’s government debts stood at $16.19m as of December 1, 2004. As per the agreement, Georgia shall pay $2.7m by the end of 2006, plus $3.239m during 2007-2021.

The debt has to be completely settled in 2025.

As APA reports, bureau that some $280 will be allocated to the payment of the government debts next year.

The debt rescheduling agreement with Paris Club is expiring in 2007.

"It is not possible to reschedule the payment period because of macroeconomic indicators of the country," he said.

He said that Georgia will settle the debt to Austria and amortize the debt owed to Turkmenistan by this year's end.

"Allocation of the funds to pay the liabilities next year will not affect Georgia’s economic situation and the exchange rate of lari," he said.