STATE DEBT PORTFOLIO AND ITS MANAGEMENT TRENDS

Abstract

Sophio Beridze
 Email:sopho1982@hotmail.com
 PhD Students, Batumi Shota Rustaveli State University
 Batumi, Georgia
 https://orcid.org/0009-0002-7264-2873
 
 Asie Tsintsadze 
 Email:asie.tsintsadze@bsu.edu.ge 
 Doctor of Economics, Professor, Batumi Shota Rustaveli State University 
 Batumi, Georgia
 https://orcid.org/0000-0002-4493-8872
 
 Lela Oniani 
 Email:lela.oniani@bsu.edu.ge 
 Associate Professor Batumi Shota Rustaveli State University 
 Batumi, Georgia
 https://orcid.org/0000-0002-5960-4015
 
 Coming out from tendency of increasing state debt annually, debt management issues is highly important for many countries of the world. In recent years state debt of Georgia and including foreign debt is at critical limit which makes negative impact on country’s debt rating. The questions arise in society: why does the state take debt? With what conditions? What is the benefits of society from debt? What are the consequences which state takes? Etc.
 The goal of this Article is to demonstrate tendency for management issues of debt service indicators and accompanying risks of state debt of Georgia and state foreign debt. The article shows the role of state debt as debt asset and importance in economic development of country as well as historical aspects of state debt policy. 
 Methodology/Approach The structure and tendency are studied according to the last 20 years statistic data, inter –dependence quality of selected factors is evaluated.
 Practical value/Implications - Though necessity for increasing domestic and foreign debt is explained by the necessity of more investment for achieving country development and economic goals, we consider that correct policy of state foreign debt management and high reliability of society it is necessary to elaborate debt necessity research in the form of file, also it should be clear what are the criterion for conferring privilege to existing debtor among alternate debtors. The measures which will promote the process of transforming foreign state debt to GDP to minimal limit, should be planned and elaborated.