Georgia’s external debt totals $17 billion in fourth quarter of 2017

National Bank President said 5% growth can be achieved but there were risks as a result of the instability in Ukraine., 30 Mar 2018 - 16:13, Tbilisi,Georgia

Georgia currently owes $17.2 billion in external debt, and this amount is growing, says the National Bank of Georgia (NBG).

During the fourth quarter (Q4) of 2017, the gross external debt of Georgia increased by $342.9 million. Out of that a $335.7 million increase was due to transactions, and $12.6 and $10.5 million increase was due to price and other changes respectively. Exchange rate changes led to its decrease by $15.9 million.

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

In the same quarter of 2017, the foreign direct investments (FDI) in Georgia amounted to $497.4 million, up 89.1 percent from the same period of the previous year.

As for Georgia’s international investment position (IIP), the IPP amounted to -$22.8 billion for December 31, 2017. Net IIP deteriorated by $647.8 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.

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 of balance of payment was $530.9 million in Q4 of 2017. A negative balance of goods was the major contributor to the current account deficit, explained NBG.