Government Delays Payment of Wage Arrears

Georgian Prime Minister Zurab Nogaideli said on August 10 that the government will repay remaining wage and allowances arrears in 2006, citing fears of inflation. Initially the government planned to repay these arrears this year.

The Prime Minister said that arrears turned out to be more than expected after exact calculations. According to the Finance Ministry the sum amounts up to 100 million Lari (USD 55,5 million)

?We faced a dilemma: if we have increased expenditures to repay arrears that would caused a serious microeconomic problems. That is why we decided to repay arrears next year,? Zurab Nogaideli told reporters after the government?s session.

According to the Georgian Pension Fund the government has already repaid this year a total of 130 million Lari of pension arrears accumulated in recent years.

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