International Investment Position of Georgia
Net international investment position (IIP) of Georgia amounted to -16.4 billion USD (-28.7 billion GEL) by 31st of March 2014, that is 101.0 percent of Georgian GDP. This figure is decreased by 595.7 million USD (1.0 billion GEL) compared to the number of the first quarter of 2013 and by 294.7 million USD (515.5 million GEL) compared to the previous quarter data. Transactions and price changes were negative; exchange rate changes and other changes were positive during the quarter. Total international assets amounted to 5.8 billion USD (10.1 billion GEL) as for 31st of March 2014. 45.1 percent out of total international assets consists of reserve assets; 29.7 percent - of other investments; 24.1 percent - of direct investment abroad; and 1.0 percent of portfolio investment and financial derivatives. 21.3 percent of total international assets consists of currency and deposits; 6.1 percent - of trade credits; 2.0 percent - of loans. Reserve assets decreased by 224.8 million USD (393.3 million GEL) compared to previous quarter. By the end of the first quarter of 2014 reserve assets amounted to 2.6 billion USD (4.5 billion GEL). -228.8 million USD (-400.3 million GEL) out of net quarterly changes of reserve assets was due to transactions, -0.3 million USD (-0.6 million GEL) - due to price changes, and 4.4 million USD (7.6 million GEL) - due to exchange rate changes. In the first quarter of 2014 EBRD issued bonds denominated in Georgian Lari, tataling 50 million GEL, that was owned by commercial banks operating in Georgia.
As for liabilities, by the end of the same period, total liabilities amounted to 22.2 billion USD (38.7 billion GEL), that is 618.7 million USD (1.0 billion GEL) decrease on annual base and 182.1 million USD (318.6 million GEL) increase on the quarterly base. Liabilities to direct investors increased by 271.7 million USD (475.4 million GEL) by transactions in the first quarter of 2014; exchange rate changes, alongside with, price and other changes were negative during the quarter. Totally the liabilities to direct investors increased by 182.1 million USD (by 318.6 million GEL) and amounted to 11.7 billion USD (20.4 billion GEL). Portfolio investment liabilities increased by 57.5 million USD (100.6 million GEL) during the quarter and amounted to 2.0 billion USD (3.5 billion GEL). Out of total portfolio investment liabilities 560.4 million USD (979.4 million GEL) are Georgian government's Eurobonds, 575.5 million USD (1.0 billion GEL) - Eurobonds of Georgian railway and 268.6 million USD (469.4 million GEL) - Georgian Oil and Gas Corporation bonds. Treasury bills and treasury notes bought by non-residents, total 14.5 million USD (25.3 million GEL) is included in this component.
By the end of the first quarter of 2014 other investments liabilities decreased by 198.4 million USD (347.0 million GEL) compared to the record of preceding quarter, and amounted to 8.5 billion USD (14.6 billion GEL). Out of that amount 6.6 billion USD (11.5 billion GEL) is comprised by loans. Monetary authorities' loans decreased by 38.7 million USD (67.7 million GEL) as compared to the record of the previous quarter and amounted to 77.1 million USD (134.7 million GEL). External liabilities of general government declined by 26.6 million USD (46.6 million GEL) during the quarter. Other long term loans increased by 22.4 million USD (39.2 million GEL), while transactions of the IMF long term debt service amounted -49.7 million USD (-87.0 million GEL). Liabilities of banking sector decreased along the reporting quarter due to decline both long term and short term debt liabilities and totaled to 1.2 billion USD (2.1 billion GEL) for the end of the quarter. External liabilities of other sectors decreased by 9.5 million USD (16.6 million GEL) during the first quarter and amounted to 1.8 billion USD (3.1 billion GEL) by 31st of March 2014. Liabilities of currency and deposits declined insignificantly by 9.7 million USD (16.9 million GEL) compared to the previous quarter record and reached 896.6 million USD (1.6 billion GEL).
By the end of March 2014, other long term liabilities of the National Bank of Georgia amounted 222.6 million USD (389.0 million GEL), which is the allocation of Special Drawing Rights (SDR).