Gross External Debt Statistics is harmonized with BOP statistics. Besides of public sector debt, it includes private sector’s (Banking and Other sector) external debt. Gross External Debt of Georgia by June 30, 2008 amounted to 7781.3 million of USD, of which 2325.8 million of USD (29.9%) is public sector debt, 647.5 million of USD (8.3%) - National Bank debt, 1621.5 million of USD (20.8%) - Banking sector debt, 1142.1 million of USD (14.7%) - other sector’s debt and 2044.2 million of USD (26.3%) is intercompany lending. The 94.8 percent of the Gross External Debt of Georgia is denominated in foreign currency.

During the second quarter of 2009, Gross External Debt of Georgia increased by 56.6 million of USD, of which 83.3 million of USD comes from the public sector. Other sector’s foreign liabilities increased considerably (40.6 million of USD). Intercompany lending and external liabilities of the National Bank enlarged as well, by 24.9 and 22.4 millions of USD respectively. Contrary, external debt of banking sector decreased significantly and diminution accounted 114.6 million of USD.

Increase of liabilities was observed in both foreign and national currency. During the reporting period gross external debt in foreign currency has enlarged by 39.2 million of USD and for the end of the quarter amounted to 7376.6 million of USD. Whereas external debt denominated in national currency has increased by 17.4 million of USD and by the end reporting period stood at 404.7 million of USD.

Such significant growth of the public sector’s external debt mainly was caused by exchange rate changes (58.3 million of USD or 70% of growth). And 30% of debt increase (24.9 million of USD) in public sector was resulted by operational changes.

Within the second quarter external liabilities of the National Bank has lessened by 1.5 million of USD, but exchange rate changes led to increase NBG’s debt by 23.9 million of USD.

External debt reduction process is still persisting in the banking sector. During the corresponding period, short-term and long-term loans of the banking sector declined by 16.3 and 101.3 million of USD respectively. Exchange rate changes caused increase banking sector’s liabilities by 3.1 million of USD.

During the second quarter of 2009, operational changes led to decrease the gross external debt of Georgia by 61.2 million of USD. However, due to exchange rate changes (mainly the US Dollar dropped heavily against the Euro and SDR) it has increased by 119.0 million of USD.