Financier and business advisor Nika Shurghaia spoke in an interview with BMG’s ‘Analytics’ program, stating that Georgia’s ability to secure financing from its traditional foreign partners is rapidly narrowing.
Shurghaia argued that major international financial institutions are losing interest in lending to Georgia. “It is clear that our traditional creditors, especially international financial institutions, no longer have the desire to lend to Georgia,” he said.
At present, the Asian Infrastructure Investment Bank (AIIB), whose shareholders include Russia and China, remains one of the few institutions still active in providing loans.
The financier also questioned Georgia’s prospects in the open market. “In the case of free debt, such as Eurobonds, it will soon become clear what kind of appetite foreign creditors have for Georgia… I do not have good expectations in this area,” he noted.
Beyond financing, Shurghaia warned of deeper structural issues. He stressed that sustainable economic growth depends on economic freedom and a strong legal environment but both have weakened in recent years. “The constitution has been violated many times, and our courts deliver too many unfair decisions. For businesses, justice largely depends on influence and money,” he said, accusing the government of encouraging a system of state-linked, crony capitalism.
The Ministry of Finance has reported that Georgia’s external debt stood at $9.04 billion as of August 1, 2024, a decline of $103 million from the previous month.
