Georgia faces $15 billion external debt

Georgia currently owes $15.5 billion in external debt, and this amount is growing, says the National Bank of Georgia (NBG).

During the fourth quarter (Q4) of 2016, the gross external debt of Georgia increased by $149 million.

Despite owing more, Georgia still has attracted more Foreign Direct Investments (FDIs).

In Q4 of 2016, Georgia attracted $330,306 in FDIs, and 2016 overall brought $1.64 million in FDIs, showed preliminary data by the National Statistics Office of Georgia (Geostat).

FDI’s last year were up 22 percent from the preliminary data of 2015, and five percent from the adjusted data of the same year, said Geostat.

In addition to the increase in FDI, Georgia’s international investment position (IIP) has also improved, amounting to -$19.7 billion for December 31, 2016. Net IIP has improved by $373.3 million compared to the previous quarter, said NBG.

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 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 of balance of payment was $661.6 million in Q4 of 2016. A negative balance of goods was the major contributor to the current account deficit, explained NBG.