Georgia plans a reform drive including privatizations, budget cuts and restructuring of foreign currency bank loans to contain the country’s economic crisis, officials said on Wednesday.
The former Soviet republic’s economy has been battered by a plunge in the Russian rouble and the conflict in Ukraine. Declining foreign investment and lower exports and remittances are also contributing to a rising current account deficit.
Central bank chief Georgy Kadagidze said Georgia’s banks may restructure the dollar loans that make up the bulk of their portfolios to help soften the impact of a 30 percent fall in the lari currency over the past year.
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Source: Voice of America
