Gross External Debt of Georgia
Gross external debt statistics are harmonized with BOP statistics. They include both public sector (general government, public corporations and national bank) and private sector (banking and other sectors) external debt. External debt statistics are compiled according to the methodology provided by the IMF's "External Debt Statistics: Guide for Compilers and Users" (2003).
The gross external debt of Georgia as of 31 December 2014 amounted to 13.5 billion USD (25.1 billion GEL), which came to 81.4 percent of the last four quarters' GDP. Of that total, public sector external debt was 5.9 billion USD (11.0 billion GEL) or 35.8 percent of GDP. A total of 4.2 billion USD (7.9 billion GEL) or 25.7 percent of GDP was the debt of the general government; the external liabilities of the National Bank amounted to 251.8 million USD (469.2 million GEL) or 1.5 percent of GDP; and the bonds and loans of public enterprises were correspondingly 829.3 million USD (1.5 billion GEL) or 5.0 percent of GDP and 578.7 million USD (1.1 billion GEL) or 3.5 percent of GDP. Banking sector external debt amounted to 2.7 billion USD (5.0 billion GEL) or 16.2 percent of GDP; other sectors' external debt stood at 3.5 billion USD (6.4 billion GEL) or 20.9 percent of GDP; while 2.8 billion USD (5.3 billion GEL) or 17.1 percent of GDP was the debt of intercompany lending. A total of 93.6 percent of the gross external debt of Georgia was denominated in foreign currency.
The net external debt of Georgia totaled 8.5 billion USD (15.9 billion GEL or 51.7 percent of GDP) as of 31 December 2014. Net public sector external debt was 3.2 billion USD (5.9 billion GEL or 19.2 percent of GDP) and net private sector external debt was 5.4 billion USD (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 USD (289.3 million GEL). Out of that, transactions and other changes led to an increase of gross external debt by 399.8 and 36.8 million USD respectively (721.1 and 66.5 million GEL). During the same period, exchange rate and price changes led to a decrease of gross external debt by 176.1 and 100.2 million USD respectively (317.6 and 180.7 million GEL).
External liabilities of the government sector increased by 92.8 million USD (167.4 million GEL) during the fourth quarter of 2014. Transactions resulted in an increase of government debt by 209.0 million USD (377.0 million GEL). While exchange rate and price changes led to a decrease of 83.2 and 33.0 million USD respectively (150.1 and 59.5 million GEL).
External liabilities of the National Bank of Georgia decreased by 10.5 million USD (19.0 million GEL). Out of This, exchange rate changes lead to a decrease of 5.9 million USD (10.6 million GEL) and transactions - to 4.6 million USD (8.3 million GEL). By the end of the fourth quarter of 2014, the external debt of the National Bank of Georgia amounted to 251.8 million USD, of which 208.6 million USD are Special Driving Rights (SDR)1 which have no maturity date, therefore there is no obligations to repay them as long as Georgia is a member of the IMF.
External liabilities of the banking sector decreased by 8.9 million USD (16.0 million GEL), of which exchange rate changes 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 banking sector external debt by 31.5 million USD (56.7 million GEL).
Other sectors' external liabilities increased by 22.5 million USD (40.7 million GEL) during the reporting period. Of that amount, nonbanking financial corporations' debt increased by 12.0 million USD (21.6 million GEL), and the external liabilities of nonfinancial corporations' increased by 10.6 million USD (19.1 million GEL). Other sectors' liabilities increased by 98.1 and 9.1 million USD (177.0 and 16.5 million GEL) due to transactions and other changes, respectively. While price and exchange rate changes led to a decrease of other sector debt liabilities by 51.1 and 33.6 million USD (92.2 and 60.6 million GEL) respectively.
Intercompany lending increased by 64.4 million USD (116.2 million GEL) during the fourth quarter of 2014. Transactions and other changes led to grow of 65.8 and 27.7 million USD (118.7 and 50.0 million GEL) respectively; while Exchange rate changes led to decline of lending by 29.1 million USD (52.5 million GEL).
Liabilities denominated in foreign currency increased by 141.0 million USD (254.4 million GEL) and amounted to 12.6 billion USD (23.5 billion GEL) and liabilities denominated in the national currency increased by 19.3 million USD (34.9 million GEL) and totaled 864.6 million USD (1.6 billion GEL).
Starting from the fourth quarter of 2014, the National Bank of Georgia begins publishing the new gross external debt's statistics table, in addition to the old statistical tables of the external debt of the country. The new table is compiled according to the renewed in 2013 methodology. The new "External Debt Statistics: Guide for Compilers and Users" (2013) meets the changes introduced by BPM6.
The main methodological changes are following:
- The instrument "arrears" is cancelled. According to the new methodology arrears are included in appropriate main instrument. Before, it was recorded separately as short term debt instrument;
- Accrued interest is included in according instruments: the interest accrued to long term debt instrument is included in long term debt and interest accrued to a short term debt instrument is included in short term debt. According to previous edition accrued interests on both - long and short term debts were recorded in short term debt instrument;
- The different treatment of a trade credits in BPM6 resulted numeral difference in trade credits by old and new methodology. Therefor the gross external debt by the new methodology is somewhat less than the gross external debt presented by old redaction.
The presented statistical information is published on the website of the National Bank of Georgia under the heading "Statistics": https://www.nbg.gov.ge/index.php?m=304
1 Allocated SDR is international reserve asset created by the IMF that is allocated to member countries in proportion to their IMF quotas. Allocated SDR is a liability that has no maturity date, therefore there is no obligation to repay them as long as the country is a member of the IMF. The amount of the above mentioned allocated SDR is presented in the assets of the National Bank and thereafter the net liability of the National Bank equals zero. From 2009, the IMF changed its methodological treatment towards SDR and, according to the new approach, allocated SDR is also recorded in liabilities.