Georgia’s external debt at $22.2 billion

The gross external debt of Georgia decreased by $127.1 million during the third quarter of 2022 and stood at $22.2 billion as of September 30, the National Bank of Georgia said in its latest update of national debt statistics on Friday.

The Bank said the figure had increased by $373.5 million due to transactions and $5 million through “other changes”, offset by a $485.5 million decrease due to exchange rate and $20.2 million in price changes, resulting in the overall decrease.

The external debt of the public sector reached $9.7 billion, or 42.8 percent of the gross domestic product, while the banking sector’s external debt amounted to $5.9 billion, or 26.2 percent of the GDP, the institution also revealed.

• Reduction of external debt gov’t priority - finance minister

Georgia’s international investment position amounted to -$26.6 billion by September 30 with a net improvement by $288 million compared to the previous quarter. The 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.

Other updated data from the Bank on Georgia’s balance of payment indicated how much money had entered and left the country, with the figures showing the current account had "become positive” and equalled $400.2 million. 

The NBG noted the trade of goods and income accounts made a “negative contribution” to the current account, while services accounts and current transfers made a “positive effect”. In the third quarter of 2022, the current account was 5.9 percent of GDP.