Q4 0f 2018: Georgia’s external debt increases, totals $17.8 bln

Georgia currently owes $17.8 billion in external debt, and this amount is increasing, says the National Bank of Georgia (NBG).

During the fourth quarter (Q4) of 2018, the gross external debt of Georgia increased by $533.3 million. Out of that a $616.5 million increase was due to transactions and $7.8 million due to other changes.

At the same time the exchange rate and price changes led to a decrease by $65.7 million and $25.3 million USD, respectively.

As for Georgia’s international investment position (IIP), the IPP amounted to -$23.2 billion for December 31, 2018. Net IIP deteriorated by $110.7 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 amounted to $458.1 million in the fourth quarter of 2018. The trade of goods and income account made negative contribution into current account, while services and current transfers - positive.