Georgia’s external debt totals $17.8 bln in first quarter of 2019

Georgia currently owes $17.8 billion in external debt, and this amount is increasing, says the National Bank of Georgia (NBG).

During the first quarter (Q1) of 2019, the gross external debt of Georgia increased by $10.2 million.

Out of that $5.6 million increase was due to transactions, $50.2 million increase due to price changes and $23.6 million - due to other changes. Meanwhile exchange rate changes lead to a decrease by $69.1 million”, said NBG.

As for Georgia’s international investment position (IIP), the net IPP amounted to -$23.5 billion for March 31, 2019, accounting for -145 per cent of the last four quarter gross domestic product (GDP). 

An IIP is a financial statement that explains the value and composition of a country’s external financial assets and liabilities. A positive IIP value indicates a nation is a creditor nation, while a negative value indicates it is a debtor nation, as is the case for Georgia.

Meanwhile other data from the NBG on the country’s balance of payment indicated how much money entered and left the country. The NBG said Georgia’s current account deficit amounted to $227 million in the Q1 of 2019. The trade of goods and income account made negative contribution into current account, while services and current transfers - positive.

Current account deficit in the Q1 of 2019 decreased by 47.7 per cent from 11.9 per cent of GDP to 6.2 per cent of GDP.