Q1 of 2020: Georgia’s external debt decreases, totals $18.3 bln

Georgia currently owes $18.3 billion in external debt, says the National Bank of Georgia (NBG).

During the first quarter of 2020, the gross external debt of Georgia decreased by $350.9 million. Out of that $318.6 million decrease was due to exchange rate changes, $179 million decrease was due to price changes, $29.4 million decrease - due to other changes, meanwhile transactions lead external debt increase by $176.1 million.

• Georgia's foreign debt increased by 6.1 bln GEL, domestic debt by 1.8 bln GEL

As for Georgia’s international investment position (IIP), the IPP amounted to -$22.4 billion for March 31, 2020, accounting for -127 per cent of the last four quarter gross domestic product. Net IIP improved by $1.3 billion 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 $417.7 million in the first quarter of 2020. The trade of goods and income account made negative contribution into current account, while services and current transfers - positive.