PM: Upgrading Georgia’s Rating by Fitch Is Tremendous Success

Georgian Prime Minister Mamuka Bakhtadze commented on Fitch's decision to upgrade Georgia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB' from 'BB-'. The Outlook is "Stable". 

“It is a tremendous success and, moreover, according to the current data we are the only country in the greater region to advance in the Fitch ratings,” he said at a press conference on February 25.

Bakhtadze explained that it is a sign of Georgia's economy being more competitive, enabling the attraction of more investments as well as job creation.

“It also means that fewer risks are associated with the economy, leading to decreased interest rates on loans. It is the most significant support towards the correct economic policy pursued by Georgia,” he noted.

The PM explained that advancement in the rating further increases the trust of international institutions and investors towards Georgia.

“It is positively reflected in the business environment of the country and, what is most important, it will have a direct correlation with our main challenge - the elimination of poverty,” he claimed.

Bakhtadze said that success was achieved by implementing effective reforms in the country, which helped reduce the current account deficit. 

“The historic problem of our economy is that Georgia was always heavily dependent on imports. We managed to alter this pressing issue, which means that we are solidly and rightly pursuing a road leading to a further reduction of this deficit. This very fact has been one of the most significant sources of poverty in Georgia… Yet we have now managed to make the economy more sustainable and resistant to external shocks,” he explained.

The PM pointed out that the current success in the Fitch rating indicates that the Government of Georgia is carrying out fundamental reforms which make the economy more competitive, and that "this is an explicit fact."

“At the same time, personally, for me, it is yet another clear example of us succeeding in our main strategy for the future by transforming Georgia into a regional economic hub,” he added.

Great news from @FitchRatings. #Georgia’s sovereign rating has been upgraded to ‘BB’ from ‘BB-’ with a stable outlook. Georgia is transforming into a regional hub w/robust & resilient economy w/ 4.8% economic growth in 2018. @GovernmentGeo

— Mamuka Bakhtadze (@BakhtadzeMamuka) February 25, 2019

By Thea Morrison