Georgia faces default?

Georgia is no longer in a position to repay its foreign debts, Georgian National Bank president Irakly Managadze said Thursday.

"Georgia failing to meet its liabilities in accordance with the schedule set by the Paris Club has actually been a defaulter for some time already," said Managadze.

He says that the non-performance of International Monetary Fund recommendations threatens a suspension of Georgian external debt continued restructuring and a subsequent worsening of the investment climate in the country.

The total volume of Georgia's foreign debt approximates $2 billion, including about $660 million claimed by the Paris Club whose session is to be held this September. Georgia's reserve fund amounts to about $200 million.