Georgia’s external debt at $24.2 billion

The gross external debt of Georgia increased by $260.3 million during the second quarter of 2023 and stood at $24.2 million as of June, the National Bank said in its latest update of national debt statistics on Friday.

The Bank said the figure had increased by $320.1 million through transactions, as well as by $13.3 million due to price changes, while exchange rate changes led to its decrease by $77.8 million.

The external debt of the public sector reached $10.8 billion, or 38.4 percent of the gross domestic product, while the banking sector’s external debt amounted to $882.9 million, or 3.1 percent of the GDP, the institution also revealed.

Georgia’s international investment position amounted to -$29.6 billion for June 30, with Net IIP deteriorating by $275.3 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 “negative” and the deficit equalled $366 million.

The NBG noted the trade of goods and income accounts had made a “negative contribution” to the current account, while services account and current transfers had made a “positive effect”. In the fourth quarter of 2023, the current account deficit increased by 34.8 percent annually.