Controversy Persists over Georgia Debt Relief by Russia

Georgian officials say the board of directors of the International Monetary Fund has postponed on May 26 the discussion to re-institute the assistance program for Georgia.

Officials say that the reason of postponement was Russia?s failure to submit its official approval to the IMF to restructure Georgia?s debt to Russia.

?The agreement over restructuring of Georgia?s dept to Russia was reached during Prime Minister Zurab Zhvania?s visit to Moscow; however due to some bureaucratic problems Russia failed to submit its official approval over rescheduling of debts to the fund due time,? President of the Georgian National Bank Irakli Managadze told reporters on May 27.

As a result of rescheduling debts, Russia would pose no obstacle to debt relief efforts by the Paris Club of the donor countries.

However, Georgian media speculates that Russia refuses to reschedule Georgia?s debts and demands from Tbilisi to write-off a Russia?s VneshEconomBank debt to Georgia ? USD 50 million.