Q4 2020 data: Gross external debt of Georgia increases by $640.1 mln
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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.
Out of that, $328.3 million increase was due to transactions, $276.4 million increase - due to exchange rate changes, $34,100 increase due to price changes and $1.2 million increase was due to other changes", says the NBG.
Public sector external debt amounted to $9.7 billion or 61.3% of GDP, while banking sector external debt amounted to $4.4 billion or 27.7% of GDP.
Georgia’s international investment position (IIP) amounted to -$24.8 billion for December 31, 2020. Net IIP has deteriorated by $955.7 million compared to the previous quarter, said NBG.
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 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 $2 billion, 12.3% of GDP. A negative balance of goods was the major contributor to the current account deficit, explained NBG.
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 $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.
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.
The latest ‘Europe and Central Asia Economic Update’ published by the World Bank reads that the Georgian economy is unlikely to recover to pre-Covid levels until late 2022. The World Bank says that the Georgian economy is projected to expand to 4% in 2021 and then to firm to 5% in 2022.
Georgia currently owes $20.6 billion in external debt, and this amount is growing, says the National Bank of Georgia (NBG). During the first quarter of 2021, the gross external debt of Georgia increased by $22.6 million.
As a result of the measures taken by the National Bank of Georgia (NBG) aimed at ensuring the stability of the financial system as a whole in Georgia, the financial sector has passed the particularly severe phase of the shock caused by the Covid-19 pandemic 'quite successfully', says the NBG in its recent report.