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 September 30 of 2010 amounted to 9379.7 million of USD, of which 3137.4 million of USD (33.4%) is public sector debt, 889.3 million of USD (9.5%) - National Bank’s debt, 1444.7 million of USD (15.4%) - Banking sector’s debt, 1676.2 million of USD (17.9%) - other sector’s debt and 2232.0 million of USD (23.8%) is intercompany lending. 94.9 percent of the Gross External Debt of Georgia is denominated in foreign currency.

In General, during the third quarter of 2010, Gross External Debt of Georgia increased by 663.7 million of USD, of which public sector debt grew by  274.5 million of USD; The National Bank’s foreign liabilities increased by 36.3 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 8.8 million of USD. Other sectors’ external liabilities grew by 297.8 million of USD of which 254.7 million of USD was due to Eurobonds issued by Georgian Railway. Intercompany lending increased by 63.8 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 increased by 615.3 million of USD and for the end of the quarter amounted to 8903.4 million of USD. The external debt denominated in national currency increased by 48.4 million of USD and by the end of reporting period reached 476.2 million of USD.

The public sector’s external debt increase amounted to 154.8 million of USD and 119.6 million of USD due to operational changes and exchange rates changes respectively.

As mentioned above, within the third quarter, external liabilities of the National Bank of Georgia increased by 36.3 million of USD. From which, 44.3 million of USD growth in indebtedness was due to the exchange rate changes, while operational changes led to decline of 8.0 million of USD.

During the corresponding period, long-term loans of the banking sector declined by 29.0 million of USD.  To the contrary, short-term external liabilities of the banking sector increased by 20.1 million of USD. Due to exchange rate changes banking sector external debt increased by 8.5 million of USD.

Within the reporting quarter, other sector’s external debt increase amounted to 252.4 million of USD and 36.8 million of USD due to operational and exchange rate changes respectively.

As a result of operational changes, intercompany lending increased by 42.3 million of USD and due to exchange rate changes by 22.1 million of USD. At the same time, intercompany lending decrease due to other changes amounted to 0.6 million of USD.
In general, during the reporting period, operational, exchange rate and other changes led to increase in gross external debt of Georgia by 424.3 million of USD, 231.4 million of USD and 8.0 million of USD correspondingly.