Georgia’s external debt totals $15 billion

Georgia currently owes $15.3 billion in external debt and this amount is growing, says the National Bank of Georgia (NBG).

During the third quarter (Q3) of 2016 the gross external debt of Georgia increased by $173.2 million of which $108.6 million increase was due to transactions.

Despite owing more, Georgia was attracting more Foreign Direct Investments (FDIs).

In Q3 of 2016, Georgia attracted $1.298 million in FDIs – a five percent increase year-on-year (y/y), showed preliminary data by the National Statistics Office of Georgia (Geostat).

Leading on from this, Georgia’s international investment position (IIP) has improved and amounted to -$20 billion as of September 30, 2016.

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.

Meanwhile other data from NBG on the country’s balance of payment indicated how much money was coming into and going out of the country. The NBG said Georgia’s current account deficit of balance of payment was $316.7million in Q3 of 2016. A negative balance of goods was the major contributor to the current account deficit, explained NBG.