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Like many post-Soviet countries, Georgia went through a period of sharp economic decline during 1990s, with high inflation and large budget deficits, due to persistent tax evasion.
In 1996 Georgia's budget deficit rose to as much as 6. 2 %.
During that period international financial institutions played a critical role in Georgia's budgetary calculations.
Multilateral and bilateral grants and loans totaled 116. 4 million lari in 1997 and totaled 182. 8 million lari in 1998.

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