The Georgian Ministry of Finance and Russian state-run outlet TASS, reported that Georgia has paid its long-standing debts to seven countries, including Russia, Armenia and Azerbaijan.
The repayment is the end of a financial obligation dating back to the country’s early post-independence years. Georgia has now paid off the remaining $3.9 million owed to Russia, a debt that had been publicly recorded since 2003, when the country’s total external debt stood at $1.5 billion. At that time, $157 million was owed specifically to Russia.
In addition to Moscow, Tbilisi has also settled debts with Armenia, Azerbaijan, Turkey, the Netherlands, Kazakhstan and Iran. Azerbaijani state outlet APA stated that the total amount Georgia owed to Armenia and Azerbaijan was around $1 million combined.
Georgia’s Finance Ministry has mentioned that these debts originated in the turbulent years following independence. They were formally restructured in 2004, with repayments commencing in 2011.
While the country has reduced these bilateral obligations, Georgia’s overall public debt has risen to $9 billion as of August. The composition of its creditors has also shifted. Today, France holds the largest share of Georgia’s debt, at $851 million.
