The impact of projects financed by foreign state debt on the economic stability of the country
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Date
2022
Authors
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Journal ISSN
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
A large part of public debt spending is directed to social security, and infrastructure projects are reduced,
which directly affects the economic situation of the country. At the same time, it is important to invest public
debt to finance such measures that will promote local production, so that the benefits obtained exceed the
debt burden.
For the state budget, the main challenge in terms of loans issued at the expense of foreign credit resources
is credit risk, the effect of which has increased especially during the pandemic period. Realization of credit risks
is manifested, on the one hand, in the restructuring of loans, and on the other hand, in the indirect payment of
service and repayment costs of loans from the state budget.
It is important to properly evaluate and identify such projects, that will be financed by foreign government
debt. This will allow the country to avoid excessive debt and its service costs. The economic situation and creditworthiness
of the country are of decisive importance for project evaluation.
Description
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Keywords
სახელმწიფო ვალი, ვალის ტვირთი, ფისკალური სისტემა, დეფოლტი
Citation
VII International Scientific Conference: "Challenges of Globalization in Economics and Business", Tbilisi, 2022, pp. 48-52