Abstract:

Recently, the COVID-19 pandemic has become the part of the new reality. We witnessed new measures and actions daily, from the official Government side as well as from the side oof the several organizations. This caused the new reality and new challenges. Since the WWII ended, the world did not face with such serious challenge. If ever it could happen that we would face to the necessity of increasing our foreign debts, it is just the moment now because we see that the crisis has involved the whole world and we don’t know when and how it will end. We don’t know when the vaccine will be invented and used, how will the humanity manage this wide crisis, response effectively to the challenge, so we will have to get used to living with this disease which demands new efforts; it will be difficult for people, for governments, for businesses; the society has to be prepared for the challenges and it is not easy for the separate countries, especially for such small and economically weak country as Georgia. In such serious global crisis our country depends on the help of its friendly, partner countries. The foreign debt of the country represents the part of the external debts which the country borrowed from the foreign lending entities, among them, from the commercial banks, governments, or international financial institutions. As a rule, the countries take foreign debts when their State entities do not have enough financial resources to achieve the desired goals. Almost all countries have foreign debts. This is an ordinary and important part of the economics. The debt should be returned in the same currency as it was taken. The foreign debt enables the country to scale up their production, to grow up their economics, though it is clear that countries should not take excessive foreign debts which would lead them to inability of payment. How much reasonable is the foreign debt taken by the country this can be measured through comparing the amount of the debt with the GDP (Gross Domestic Product) of the country. The International Monetary Fund (IMF) is one of those organizations which monitor the foreign debts of the countries. Besides that, the World Bank publishes the quarterly statistic reviews of the foreign debts of the countries in the world.

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