Georgia’s external debt decreases, totals $17.4b

During the Q2 of 2018, the gross external debt of Georgia decreased by $346.9 million. Photo: N. Alavidze/, 28 Sep 2018 - 15:34, Tbilisi,Georgia

Georgia currently owes $17.4 billion in external debt and this amount is decreasing, says the National Bank of Georgia (NBG).

During the second quarter (Q2) of 2018, the gross external debt of Georgia decreased by $346.9 million. Out of that sum, a $242.4 million decrease was due to exchange rate changes and transactions also lead to a decrease by $66.1 million.

As for Georgia’s international investment position (IIP), the IPP amounted to -$23.2 billion as of June 30, 2018, accounting for -144.9 per cent of the last four quarter gross domestic product (GDP).

Net IIP improved by $594.6 million compared to the previous quarter.

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.

Other data from the NBG on the country’s balance of payment indicate how much money entered and left the country: the NBG said Georgia’s current account deficit of balance of payment was $368.5 million in Q2 of 2018. A negative balance of goods was the major contributor to the current account deficit, explained the NBG.