Georgia’s international investment position (IIP) has dropped on a global scale, reveals new data published by the National Bank of Georgia (NBG).
As of December 31, 2014, the IIP of Georgia amounted to $17.1 billion USD (-31.9 billion GEL), which was 103.6 percent of Georgia’s GDP.
This figure had decreased by $1 billion (1.8 billion GEL) compared to the fourth quarter of 2013, and by $95.9 million (172.9 million GEL) compared to the previous quarter.
A country’s IIP was a financial statement setting out the value and composition of that country’s external financial assets and liabilities. A positive IIP value indicated a nation was a creditor nation, while a negative value indicated it was a debtor nation.
For Georgia, transactions and other changes were negative during the last quarter, while price changes and exchange rate changes were positive, noted NBG.
Total international assets amounted to $6.1 billion (11.4 billion GEL) as of December 31, 2014. Reserve assets comprised 44 percent of total international assets; other investments made up 30.2 percent; direct investment abroad stood at 24.7 percent; and 1.1 percent was made up of portfolio investment and financial derivatives.
A total of 20 percent of international assets consisted of currency and deposits (currency and deposits of reserve assets are excluded); 6.7 percent consisted of trade credits and 3.2 percent were loans.
Reserve assets decreased by $2 million (3.6 million GEL) during the quarter. By the end of December 2014, reserve assets amounted to $2.7 billion (5 billion GEL). A total of $34.9 million (65.0 million GEL) of the net quarterly changes of reserve assets was transactions, $0.8 million (1.5 million GEL) was price changes, and -$37.6 million (-70.1 million GEL) was a result of exchange rate changes.
By the end of the fourth quarter of 2014 total liabilities amounted to $23.3 billion (43.3 billion GEL), which was a $1.1 billion (2 billion GEL) increase on the annual base and a $51.3 million (92.5 million GEL) increase on the quarterly base.
Liabilities to direct investors increased by $349.1 million (650.7 million GEL) from transactions in the third quarter of 2014.
Price changes and other changes were positive but changes to the exchange rate were negative (down $439.3 million or 818.8 million GEL) during the quarter. Total liabilities to direct investors decreased by $49.7 million (92.7 million GEL) and amounted to $12.2 billion (22.8 billion GEL).
Portfolio investment liabilities decreased by $90 million (162.4 million GEL) during the quarter and amounted to $2.2 billion (4.1 billion GEL).
Out of the total portfolio investment liabilities, $532.3 million (992.0 million GEL) consisted of the Georgian Government’s Eurobonds, and $829.3 million (1.5 billion GEL) were Public Enterprises Bonds. Treasury bills and Treasury notes bought by non-residents, totalling $19.5 million (36.3 million GEL), are included in this component.
By the end of the fourth quarter of 2014, other investment liabilities increased by $191.1 million (344.6 million GEL) and amounted to $8.8 billion (16.4 billion GEL).
Out of that amount, loans made up $6.7 billion (12.4 billion GEL). Monetary authorities’ loans decreased by $5.2 million (9.3 million GEL) compared to the previous quarter and amounted to $42.6 million (79.4 million GEL).
External liabilities of the general government grew by $132.8 million (239.6 million GEL) during the quarter. Other long term loans (excluding IMF credits and loans) increased by $112.1 million (202.3 million GEL). Transactions of outstanding IMF credits comprised $22.4 million (41.8 million GEL). The liabilities of the banking sector decreased by $81.3 million (146.7 million GEL) during the reporting quarter and totalled $1.2 billion (2.2 billion GEL) at the end of the quarter.
External liabilities of other sectors decreased by $29.9 million (54.0 million GEL) during the fourth quarter and amounted to $1.8 billion (3.3 billion GEL) as of December 4, 2014. The liabilities of currency and deposits declined by $81.9 million (147.8 million GEL) compared to the previous quarter and made up $1billion (1.9 billion GEL).
By the end of December 2014, other long term liabilities of NBG amounted to $208.6 million (388.7 million GEL), which was the allocation of Special Drawing Rights (SDR).