1 Apr 2015 - 13:15
Georgia’s international investment position (IIP) has dropped on a global scale, reveals new data published by the National Bank of Georgia (NBG).
As of December 31, 2014, the IIP of Georgia amounted to $17.1 billion USD (-31.9 billion GEL), which was 103.6 percent of Georgia's GDP.
This figure had decreased by $1 billion (1.8 billion GEL) compared to the fourth quarter of 2013, and by $95.9 million (172.9 million GEL) compared to the previous quarter.
A country's IIP was a financial statement setting out the value and composition of that country's external financial assets and liabilities. A positive IIP value indicated a nation was a creditor nation, while a negative value indicated it was a debtor nation.
For Georgia, transactions and other changes were negative during the last quarter, while price changes and exchange rate changes were positive, noted the National Bank of Georgia (NBG).
Total international assets amounted to $6.1 billion (11.4 billion GEL) as of December 31, 2014. Reserve assets comprised 44 percent of total international assets; other investments made up 30.2 percent; direct investment abroad stood at 24.7 percent; and 1.1 percent was made up of portfolio investment and financial derivatives.
A total of 20 percent of international assets consisted of currency and deposits (currency and deposits of reserve assets are excluded); 6.7 percent consisted of trade credits and 3.2 percent were loans.
Reserve assets decreased by $2 million (3.6 million GEL) during the quarter. By the end of December 2014, reserve assets amounted to $2.7 billion (5 billion GEL). A total of $34.9 million (65.0 million GEL) of the net quarterly changes of reserve assets was transactions, $0.8 million (1.5 million GEL) was price changes, and -$37.6 million (-70.1 million GEL) was a result of exchange rate changes.
By the end of the fourth quarter of 2014 total liabilities amounted to $23.3 billion (43.3 billion GEL), which was a $1.1 billion (2 billion GEL) increase on the annual base and a $51.3 million (92.5 million GEL) increase on the quarterly base.
Liabilities to direct investors increased by $349.1 million (650.7 million GEL) from transactions in the third quarter of 2014.
Price changes and other changes were positive but changes to the exchange rate were negative (down $439.3 million or 818.8 million GEL) during the quarter. Total liabilities to direct investors decreased by $49.7 million (92.7 million GEL) and amounted to $12.2 billion (22.8 billion GEL).
Portfolio investment liabilities decreased by $90 million (162.4 million GEL) during the quarter and amounted to $2.2 billion (4.1 billion GEL).
Out of the total portfolio investment liabilities, $532.3 million (992.0 million GEL) consisted of the Georgian Government's Eurobonds, and $829.3 million (1.5 billion GEL) were Public Enterprises Bonds. Treasury bills and Treasury notes bought by non-residents, totalling $19.5 million (36.3 million GEL), are included in this component.
By the end of the fourth quarter of 2014, other investment liabilities increased by $191.1 million (344.6 million GEL) and amounted to $8.8 billion (16.4 billion GEL).
Out of that amount, loans made up $6.7 billion (12.4 billion GEL). Monetary authorities' loans decreased by $5.2 million (9.3 million GEL) compared to the previous quarter and amounted to $42.6 million (79.4 million GEL).
External liabilities of the general government grew by $132.8 million (239.6 million GEL) during the quarter. Other long term loans (excluding IMF credits and loans) increased by $112.1 million (202.3 million GEL). Transactions of outstanding IMF credits comprised $22.4 million (41.8 million GEL). The liabilities of the banking sector decreased by $81.3 million (146.7 million GEL) during the reporting quarter and totalled $1.2 billion (2.2 billion GEL) at the end of the quarter.
External liabilities of other sectors decreased by $29.9 million (54.0 million GEL) during the fourth quarter and amounted to $1.8 billion (3.3 billion GEL) as of December 4, 2014. The liabilities of currency and deposits declined by $81.9 million (147.8 million GEL) compared to the previous quarter and made up $1billion (1.9 billion GEL).
By the end of December 2014, other long term liabilities of NBG amounted to $208.6 million (388.7 million GEL), which was the allocation of Special Drawing Rights (SDR).