International Investment Position of Georgia
Net international investment position (IIP) of Georgia amounted to -16.3 billion USD (-28.3 billion GEL) by 31st of December 2013, that is 101.3 percent of Georgian GDP. This figure is decreased by 545.6 million USD (907.4 million GEL) compared to the number of the fourth quarter of 2012 and by 167.0 million USD (281.5 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 6.0 billion USD (10.5 billion GEL) as for 30st of December 2013. 46.9 percent out of total international assets consists of reserve assets; 30.0 percent - of other investments; 22.7 percent - of direct investment abroad; and 0.5 percent of portfolio investment and financial derivatives. 21.2 percent of total international assets consists of currency and deposits; 6.1 percent - of trade credits; 2.5 percent - of loans. Reserve assets decreased by 251.1 million USD (423.2 million GEL) compared to previous quarter. By the end of the fourth quarter of 2013 reserve assets amounted to 2.8 billion USD (4.9 billion GEL). -252.7 million USD (426.0 million GEL) out of net quarterly changes of reserve assets was due to transactions, -1.5 million USD (-2.6 million GEL) - due to price changes, and 3.2 million USD (5.4 million GEL) - due to exchange rate changes.
As for liabilities, by the end of the same period, total liabilities amounted to 22.3 billion USD (38.8 billion GEL), that is 772.0 million USD (1.3 billion GEL) increase on annual base and 281.6 million USD (474.7 million GEL) increase on the quarterly base. Liabilities to direct investors increased by 220.6 million USD (371.8 million GEL) by transactions in the fourth quarter 2013. During the same period a significant exchange rate changes was observed. Totally the liabilities to direct investors decreased by 9.1 million USD (by 15.3 billion GEL) and amounted to 11.7 billion USD (20.3 billion GEL). Portfolio investment liabilities increased by 147.7 million USD (248.9 million GEL) during the quarter and amounted to 2.0 billion USD (3.4 billion GEL). The reason for increase was issuance of new bonds by banking sector. Out of total portfolio investment liabilities 543.0 million USD (942.8 million GEL) are Georgian government's Eurobonds, 571.5 million USD (992.3 million GEL) - Eurobonds of Georgian railway and 262.0 million USD (454.9 million GEL) - Georgian Oil and Gas Corporation bonds. Treasury bills and treasury notes bought by non-residents, total 15.9 million USD (27.6 million GEL) is included in this component.
By the end of the fourth quarter of 2013 other investments liabilities increased by 143.1 million USD (241.1 million GEL) compared to the record of preceding quarter, and amounted to 8.7 billion USD (15.1 billion GEL). Out of that amount 6.7 billion USD (11.7 billion GEL) is comprised by loans. Monetary authorities' loans decreased by 36.3 million USD (61.2 million GEL) as compared to the record of the previous quarter and amounted to 115.8 million USD (201.1 million GEL). External liabilities of general government grew by 106.9 million USD (180.1 million GEL) during the quarter due to increase of long term liabilities. It should be noted that transactions of the IMF long term debt service amounted -49.6 million USD (-83.6 million GEL). Liabilities of banking sector increased along the reporting quarter mainly due to short term debt accumulation and totaled to 1.3 billion USD (2.3 billion GEL) for the end of the quarter. External liabilities of other sectors decreased by 7.1 million USD (11.9 million GEL) during the fourth quarter and amounted to 1.8 billion USD (3.1 billion GEL) by 31st of December 2013. Liabilities of currency and deposits raised by 36.9 million USD (62.2 million GEL) compared to the previous quarter record and reached 906.3 million USD (1.6 billion GEL).
By the end of December 2013, other long term liabilities of the National Bank of Georgia amounted 221.7 million USD (385.0 million GEL), which is the allocation of Special Drawing Rights (SDR).