Georgia May Issue Eurobonds in 2016

TBILISI - Georgia may issue Eurobonds in 2016 and is expecting additional resources from international financial institutions to deal with economic slowdown caused by problems in neighbouring countries, Prime Minister Giorgi Kvirikashvili has stated.

He says the government is planning to hold a series of roadshows in the United States and other countries to attract foreign investment.

“I can’t predict whether we will need to issue Eurobonds, but if speeding up infrastructure projects requires attracting additional investments, including via Eurobonds, of course, we will do that, maybe later this year,” PM Kvirikashvili told Reuters in an interview.

The PM discussed planned tax reforms that would include abolishing corporate profit tax, a simplification of tax administration and further liberalization of the economy.

He believes it is possible to make Georgia’s economy comparable to eastern European standards in terms of revenue and per capita GDP within a decade.

The PM also told Reuters that, after the lifting of international sanctions, Iran could bring a new dynamism to the region, and that Georgia’s location at a crossroads between Europe and Asia put it in a position to boost cooperation between Iran and Europe.

“Iran is ready to discuss cooperation in different fields, including in the energy sector, which can be very interesting for Europe to diversify its energy supplies,” PM Kvirikashvili said.

Georgia issued USD 500 million worth of 10-year Eurobonds in 2011 and at the same time bought back USD 417 million of its five-year USD 500 million Eurobonds, which it issued in 2008.

Ana Akhalaia