External debt is an expensive resource, which creates a fiscal burden not only for today’s taxpayers but also for future generations. It is important that the public knows what use these resources are put to. Hence, Transparency International Georgia analyzed key data on external debt, which the state (the GoG and the National Bank) has taken on in 1992-2015:

• Between 1992 and 1995, the state borrowed the equivalent of USD 6.65 billion in a variety of currencies;

• The state has most frequently borrowed from the World Bank (79 agreements);

• In total, the state has borrowed the most from the International Monetary Fund (USD 1.57 billion);

• Between 1992 and 2015, the largest loan the state took out was from the International Monetary Fund (SDR 741.1 million, with the equivalent of SDR 577.1 disbursed). It was borrowed in order to support the National Bank and the budget;

• Between 1992 and 2015 the highest interest rate (8.2%) on a foreign loan was for the rehabilitation of energy infrastructure. The loan was for a guaranteed sum of USD 18.1 million in 1994 and made by the EBRD;

• The weighted average interest on public external debt is 1.9%;

• Assuming that the state will not take on any more external debt, the final loan will be paid off in 2052 - the May 31, 2012 KfW Credit for Rehabilitation of Municipal Infrastructure in Batumi.

The public external debt, for the moment, does not represent a threat to macroeconomic stability. Together with domestic debt, it is in line with the requirements of the Economic Freedom Act, which is based on the Maastricht Criteria. Despite this, raising funds through external debt is expensive and increases the fiscal burden on today's as well as future generations of taxpayers. Hence, we believe it is important that the public has key statistics about external debt.