Paris Club creditors reschedule Georgian debt

22nd July 2004, Comments 0 comments

PARIS, July 21 (AFP) - Government creditors in the Club of Paris agreed Wednesday to restructure USD 160.6 million dollars (EUR 131.4 million) in debt owed them by Georgia, the club announced, in an effort to get the Caucasian country's economy going again.

PARIS, July 21 (AFP) - Government creditors in the Club of Paris agreed Wednesday to restructure USD 160.6 million dollars (EUR 131.4 million) in debt owed them by Georgia, the club announced, in an effort to get the Caucasian country's economy going again.

"This debt restructuring will make an important positive contribution to Georgia's economic outlook," it said in a statement.

"After a comparable effort from other creditors, this rescheduling will satisfy Georgia's financing requirements for 2004-2006."

The amount rescheduled is due on debts contracted by Georgia before November 1, 1999 and consists of arrears, including late interest, due between June 1, 2004 and December 31, 2008.

The agreement is expected to reduce debt service due to Paris Club creditors from USD 169.2 million to EUR 46.4 million.

Georgia elected Mikhail Saakashvili as its new president in January, after ousting Eduard Shevardnadze in November following a popular uprising, in part over public disgust at persistent corruption in the former Soviet republic.

© AFP

Subject: French news

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