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Georgia faces $13.5 billion external debt

Georgia has amassed a $13.5 billion USD (25.1 billion GEL) gross external debt.

This figure, as of December 31, 2014, was 81.4 percent of the total GDP of last year, revealed data published by the National Bank of Georgia (NBG).

Of that amount, external debt generated from within the public sector was $5.9 billion (11.0 billion GEL) or 35.8 percent of GDP. A total of $4.2 billion (7.9 billion GEL) or 25.7 percent of GDP was the debt of the general Government; the external liabilities of the NBG amounted to $251.8 million (469.2 million GEL) and the bonds and loans of public enterprises correspondingly reached $829.3 million (1.5 billion GEL) and $578.7 million (1.1 billion GEL).

The banking sector’s external debt amounted to $2.7 billion (5.0 billion GEL), while other sectors’ external debt stood at $3.5 billion (6.4 billion GEL). A total of $2.8 billion (5.3 billion GEL) was the debt of intercompany lending. Similarly, 93.6 percent of the country’s gross external debt was denominated in foreign currency.

NBG noted the net external debt of Georgia totalled $8.5 billion (15.9 billion GEL or 51.7 percent of GDP) as of December 31, 2014. Net public sector external debt was $3.2 billion (5.9 billion GEL or 19.2 percent of GDP) and net private sector external debt was $5.4 billion (10.0 billion GEL or 32.4 percent of GDP).

During the fourth quarter of 2014, the gross external debt of Georgia increased by $160.4 million (289.3 million GEL). Out of that, transactions and other changes led to an increase of gross external debt. During the same period, exchange rate and price changes led to a decrease of gross external debt.

External liabilities of the Government sector increased by $92.8 million (167.4 million GEL) during the fourth quarter of 2014.

External liabilities of NBG decreased by $10.5 million (19.0 million GEL).

Meanwhile external liabilities of the banking sector decreased by $8.9 million USD (16.0 million GEL), where changes to the exchange rate led to a decrease of $24.3 million USD (43.8 million GEL) and price changes – to 16.1 million USD (29.0 million GEL). While transactions increased the banking sector external debt by 31.5 million USD (56.7 million GEL).

Intercompany lending increased by $64.4 million (116.2 million GEL) during the fourth quarter of 2014. Transactions and other changes led to a growth of $65.8 and $27.7 million (118.7 and 50 million GEL) respectively; while exchange rate changes led to a decline of lending by $29.1 million (52.5 million GEL).

Liabilities denominated in foreign currency increased by $141 million (254.4 million GEL) and amounted to $12.6 billion (23.5 billion GEL). Liabilities denominated in the national currency increased by $19.3 million (34.9 million GEL) and totalled $864.6 million (1.6 billion GEL).

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