The President of Georgia Mikheil Saakashvili met Nick Gilauri at the President's Palace today. They spoke about the details of postponing state loans, which got possible by the issuance of Eurobonds. As the President noted the above mentioned loan that was supposed to be covered by 2013 would be covered by 2021 and what's most important the percentage rate would decrease instead of increasing.
By the evaluations of the President the effective work of the government would improve the investment climate in Georgia more and would support economic growth.
"I think some very important thing was fulfilled successfully. The Government managed to postpone the state loan by pretty significant period of time. It means that by 2013 we wouldn't have to pay the major part of this loan, what would give us a chance to spend money on the development of country and improve social-economic conditions instead of paying old loans. We really have to celebrate something, because it means the huge trust from the side of international investors, especially when Greece has collapsed, Portugal has such problems, the same happens in Ireland and Island. The majority of investors do not trust these countries any more and in these very heavy conditions Georgia managed to successfully postpone its loans and continuation of credit resources. This is a really very good job", the President of Georgia noted.
As the Prime Minister said, this loan is ten years long and it would become possible to spend rather more money on the infrastructural and other projects from the state budget. During the discussion, Mikheil Saakashvili stressed his attention on the fact that in 2021, when Georgia would be much more developed, it will not be that hard for the country to pay this loan. The President compared the country to the family that can give children good education by postponing its mortgage loan.
"It is about the same, if a family would borrow money from the bank to buy an apartment and the bank would postpone this loan for significant period of time - the family would have a chance to give good education to the children or do something more fruitful - to support its nearest future. Exactly the same happens with the state. In those conditions when we went through war and economic crises, trust that we have is rather high than it was before war towards Georgia. This is a direct result of conditions we have created within the country - we had managed to create a very simple climate for doing business. We have surprised everyone, by not having our economy collapsed - in previous years economy was supposed to collapsed by all criteria. Georgia managed to do the major thing - something that Greece or some other European states couldn't do. We have created totally incorrupt climate in country on every level, otherwise no one would give you money.
The investors know very well that every level in our government is incorrupt. Second thing, besides the fact that we are number one reformer country in the world, in this region that covers Eastern and Central Europe, the whole post-soviet space and all our neighborhood - we are the most attractive country in regards of doing business. It is result of this job that we have trust and that now we can use our money calmly on the development of our country and not paying loans that belong to others", Mikheil Saakashvili stated.
Nick Gilauri considers that such a trust on the market of securities would stimulate additional flow of investments in Georgia both from the Western and Eastern companies and accordingly additional jobs will be created in Georgia. He also said that the country would no longer have a problem of loan.
Our evil wishers were saying: it is true that Georgia had developed, but in certain point they would have to pay the loans and it would collapse by all means. Now no one can say something. We will not have a problem of loans any more during many years and we have all criteria for continuing the development. The social problems that we face must be solved more easily. This is exactly what the stability means and it is a right policy. Especially it concerns fighting with corruption, many had been against it and we had so many problems because of this in previous years - several times we almost had revolution. The major reason of our success is that we had abolished corruption on every level and that we had simplified business climate. We must continue like this in future as well", the President of Georgia noted.