Georgia faces $17.5 billion external debt

Mon 02 July 2018 06:33 GMT | 10:33 Local Time

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Georgia currently owes $17.5 billion in external debt, and this amount is growing, says the National Bank of Georgia (NBG), Agenda reports.

During the first quarter (Q1) of 2018, the gross external debt of Georgia increased by $192.6 million. Out of that a $238.3 million increase was due to exchange rate changes and transactions also lead to an increase by $21 million, agenda.ge reports.

Price and other changes lead to a decrease by 57 and 9.7 million USD, respectively.

Despite owing more, Georgia still has attracted more Foreign Direct Investments (FDIs).

In the same quarter of 2018, foreign direct investments in Georgia amounted to $279.3 million. This is a 32.9 percent decrease compared to the same period of the previous year.

As for Georgia’s international investment position (IIP), the IPP amounted to $23.9 billion as of March 31, 2018. Net IIP deteriorated by $1.1 billion 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.

Other data from the NBG on the country’s balance of payment indicate how much money entered and left the country: the NBG said Georgia’s current account deficit of balance of payment was $428 million in Q1 of 2018. A negative balance of goods was the major contributor to the current account deficit, explained the NBG.

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