Georgia’s external debt at $22.3 billion

Georgia currently owes $22.3 billion in external debt and the amount is growing, the National Bank of Georgia has said in its latest update of related statistics.

The gross external debt of the country increased by $268.8 million in the second quarter of this year, the figures show, with $662.3 million related to transactions. Figures for exchange rate, price and other changes marked a decrease by $290.2 million, $73.2 million and $30.1 million respectively, NBG said.

From the statistical data, the external debt of the public sector reached $10.2 billion, or 47.8 percent of the gross domestic product, while the banking sector’s external debt amounted to $5.6 billion, or 26.1 percent of the GDP.

Georgia’s international investment position amounted to -$26.8 billion for June 30, with the net IIP deteriorating by $326.5 million compared to the previous quarter, the Bank also noted. 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 Bank on the country’s balance of payment indicated how much money had entered and left the country, with the figures showing a current account deficit of balance of payment at $252.1 million. 

The trade of goods and income accounts make a negative contribution to the current account, while services account and current transfers make a positive effect", NBG said.

In the second quarter of 2022, current account deficit decreased by 49 percent annually.