NBG: Georgia’s debt is reducing, totals $14.6 billion

The Netherlands was Georgia's largest investor in 2014, with $331 million USD. Photo by N. Alavidze / Agenda.ge.
Agenda.ge, 01 Jul 2016 - 14:20, Tbilisi,Georgia

Georgia is reducing its external debt and improving its International Investment Position (IIP) meaning the country is attracting more Foreign Direct Investments (FDIs).

During the first quarter (Q1) of 2016 the gross external debt of Georgia decreased by $429.9 million USD, said the latest statistics by the National Bank of Georgia (NBG).

NBG explained this change was mainly due to transferring direct investor’s debt in equity capital.

In total the gross external debt of Georgia amounted to $14.6 billion as of March 31, 2016 which was 107.1 percent of Gross Domestic Product (GDP) from the last four quarters.

Meanwhile, Georgia enjoyed a record number of FDIs - $376 million - in Q1 of 2016. This was a 103 percent increase year-on-year (y/y) and a record since 2008.

Following this increase the country’s investment position on the global scale has improved.

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 such in Georgia’s case.

As of March 31, 2016 the country’s net IIP amounted to -$18.7 billion. This was -136.8 percent of the country’s GDP of the last four quarters, said NBG.

This figure has deepened by $662.5 million compared to the previous quarter,” said the bank yesterday.

Georgia’s international assets amounted to $7 billion as of March 31, 2016, increasing by $101.8 million during the quarter, said the bank.

All $ currencies are USD.