Georgia erases Soviet-era burden, repays $225 million "historic debt"

Georgia has officially settled what it called its “historic debt” to Russia, Armenia, Azerbaijan and four other states, bringing an end to a financial obligation that dates back to the early years of independence.

According to Georgian media, the Ministry of Finance, in September 2025, Georgia made the final payments on its outstanding liabilities that had been restructured in July 2004 under an agreement with the Paris Club of creditors.

The debt in question amounted to $160 million borrowed by Georgia prior to 1999, along with accumulated interest on arrears from 1999 to May 2004 and obligations that were originally due for repayment between 2004 and 2006. In total, the sum exceeded $225 million.

The final settlement covers debts to six countries: Russia, Türkiye, Kazakhstan, Armenia, Azerbaijan and Iran.

By repaying these obligations in full, Georgia has closed a long chapter in its financial history and eliminated liabilities that had burdened the state budget for decades.

By Tamilla Hasanova