CEU Electronic Theses and Dissertations, 2012
| Author | Gvaramadze, Shota |
|---|---|
| Title | A need for effective fiscal rules and further macro-stabilization for ensuring debt sustainability in Georgia |
| Summary | A rapid and significant build up of Georgia’s public and external debt in last four year has created a need for a sustainability assessment. By analyzing the government’s external liabilities together with the country’s external debt position (government external debt plus private sector external debt) I come to an interesting finding. While there is still a substantial fiscal space for further government borrowing, Georgia’s external debt might be reaching the level that can lead to a debt distress. Since the government has been borrowing mostly from the external sources, any further borrowing by the Georgian government will add to the external debt unless domestic savings increase and domestic government liabilities grow as a share of total government debt. In order to ensure medium to long term debt sustainability, a comprehensive and effective rules-based fiscal framework is necessary. In addition, better policies are needed for further macro-stabilization that will reduce the volatility of Georgian economy and facilitate debt management. |
| Supervisor | Laszlo Matyas |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2012/gvaramadze_shota.pdf |
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