Gross external debt of Georgia increases by $640.1 mln

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.