Q2 of 2020: Georgia’s external debt increases, totals $18.8 bln
During the second quarter of 2020 the gross external debt of Georgia increased by $435 million. Photo: Nino Alavidze/Agenda.ge.
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Georgia currently owes $18.8 billion in external debt, says the National Bank of Georgia (NBG).
During the second quarter of 2020 the gross external debt of Georgia increased by $435 million. Out of that $202 million increase was due to exchange rate changes, $199.4 million decrease was due to transactions, $33.2 million increase due to price changes and $370,500 - due to other changes.
As for Georgia’s international investment position (IIP), the IPP amounted to -$23.5 billion for June 30, 2020, accounting for -140 per cent of the last four quarter gross domestic product. Net IIP deteriorated by $953.7 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 $337.1 million in the second quarter of 2020. The trade of goods and income account made negative contribution into current account, while services and current transfers - positive. Current account deficit increased by 97.3 per cent from -3.9 per cent of GDP to -9.4 per cent of GDP, said the NBG.
The amount of the external debt of the Georgian government borrowed within the last eight years amounts to 13.3 billion GEL ($4.1 bln/€3.5 bln), thus the total amount of government’s external debt is now three times more than it was eight years ago.
Georgia will have a three-year grace period to repay foreign debts taken on amid the coronavirus crisis, said Deputy Finance Minister Giorgi Kakauridze earlier today.
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.
The government of Georgia will take a new loan worth 4.47 billion GEL to handle the crisis caused by the coronavirus pandemic, according to the anti-crisis budget for 2020 presented today.
The gross external debt of Georgia amounted to $19.7 billion as of September 30 which constituted 120.4 percent of the last four quarters' gross domestic product, says the National Bank of Georgia.
Georgia currently owes $20.3 billion in external debt, and this amount is growing, says the National Bank of Georgia (NBG). During the fourth quarter of 2020, the gross external debt of Georgia increased by $640.1 million.