Deputy Finance Minister Comments on Greek Debt Crisis Affect on Georgia

While the Greek debt crisis is already affecting Georgia, particularly with decreases in remittances, it is not expected to have further “significant” impact on the Georgian economy, said Deputy Finance Minister Giorgi Kakauridze on July 1.

Greece is the second largest source of remittances to Georgia.

“Situation in Greece will of course affect money transfers to Georgia, but remittances are already significantly reduced not only from Greece, but from other sources as well, so it will not have a significant effect on the Georgian economy anymore,” Kakauridze told Rustavi 2 TV.

Ahead of the referendum on bailout terms, Greece has imposed capital controls that, among other measures, also include bans on money transfers to destinations outside Greece.

Remittances to Georgia were down by 23.2% to USD 438.1 million in the first five months of 2015 from USD 570.6 million in the same period last year.

Remittances from Greece declined by 18.1% in January-May 2015 to USD 68.9 million from USD 84.2m in the first five months last year.

Money transfers from Russia, the largest source of remittances to Georgia, stood at USD 162.8 million in January-May 2015, a 42.4% year-on-year decline.

Money transferred from abroad to Georgia in 2014 was down by 2.45% year-on-year to USD 1.44 billion and it accounts for 8.7% of country’s GDP.

The Georgian Foreign Ministry said on Wednesday that the Georgian nationals in Greece will be able to receive various consular services from the Georgian diplomatic mission in Greece free of charge on July 1-3.