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 March 31st of 2010 amounted to 8790.5 million of USD, of which 2912.54 million of USD (33.1%) is public sector debt, 879.2 million of USD (10.0%) - National Bank debt, 1456.1 million of USD (16.6%) - Banking sector debt, 1310.9 million of USD (14.9%) - other sector’s debt and 2231.8 million of USD (25.4%) is intercompany lending. A 95.0 percent of the Gross External Debt of Georgia is denominated in foreign currency.

In General, during the first quarter of 2010, Gross External Debt of Georgia increased by 77.5 million of USD, of which 173.9 million of USD comes from the public sector. On the contrary, the National Bank’s foreign liabilities have decreased by 34.5 million of USD. Like preceding quarters, external liabilities of banking sector continued to decline. During the reporting quarter, decrease in foreign debt of the banking sector, amounted to 46.9 million of USD. At the same time, other sectors’ external liabilities shrunk by 52.3 million of USD. To the contrary, intercompany lending increased by 37.4 million of USD.

Increase in foreign liabilities mainly was observed in loans denominated in foreign currency. During the reporting period gross external debt in foreign currency enlarged by 79.7 million of USD and for the end of the quarter amounted to 8355.2 million of USD. Quite the contrary, the external debt denominated in national currency declined by 2.2 million of USD and by the end of reporting period stood at 435.3 million of USD.

The public sector’s external debt increase, caused by operational changes, amounted to 239.8 million of USD. While due to the exchange rates changes, gross external liabilities of public sector declined by 65.9 million of USD.

As mentioned above, within the first quarter, external liabilities of the National Bank decreased by 34.5 million of USD. From which, 5.9 million of USD decline in indebtedness was due to the operational changes (17.0 percent of the NBG’s total external debt decrease). Exchange rate changes led to decline NBG’s debt by 28.7 million of USD (or 83.0 percent of an overall decline).

During the corresponding period, long-term loans of the banking sector declined by 4.7 million of USD.  More substantial was lessening in short-term external liabilities of the banking sector, totaling 42.2 million of USD. Due to exchange rate changes banking sector’s external debt decreased by 4.6 million of USD.

During the reporting quarter, other sector’s external debt decrease, caused by operational changes, amounted to 24.5 million of USD. Due to the exchange rates changes, gross external liabilities of other sector declined by 19.1 million of USD. To the contrary, due to operational changes, intercompany lending increased by 20.3 million of USD, whiles 3.6 million of USD decrease was caused by exchange rate changes. Within the first quarter of 2010, intercompany lending increase due to other changes amounted to 35.5 million of USD. That mainly was caused by reclassification of other sectors’ external liabilities into the category under consideration. 

During the reporting quarter, operational changes led to increase the gross external debt of Georgia by 187.3 million of USD. Although, due to exchange rate changes it has declined by 136.7 million of USD.