Beginning in the 1960s, foreign credit was used to finance development, but the amount of foreign debt had decreased since the mid-1980s.

Other foreign credits have been used to purchase machinery, equipment and spare parts.

With foreign credit tight, few new building projects were started.

In 2005, Georgia's budget will total $1 billion, with $150 million, or about 15 percent, in foreign credits and grants.

And instant convertibility depends on the availability of foreign credit.

The central bank said the turnaround came in the last quarter, when heavy private- sector demand for foreign credit increased the debt by $500 million.

Soviet leaders understand that foreign credits offer, at best, a little more time to beat back domestic resistance to change.

But, with less foreign credit, it must increasingly be serviced from earnings, not new borrowing.

The Government stopped paying interest on the debt last July, and, as one result, received only half of expected foreign credit.

During his three-year rule, the government tried to solve its grave financial problems, which were aggravated by the lack of foreign credit.