Statistics of a total external debt is in harmonization with the balance of payment. Except the state external debt (sector of the government and monetary bodies,) it includes the external debt of a private sector (banking and other sectors).

For the purposes of maintenance of statistics of a total external debt, the National Bank of Georgia obtains the information from: the Ministry of Finance of Georgia, Department of Statistics of the Ministry of the Economic Development of Georgia and from its own sources.

By December 31, 2007 the total external debt of Georgia constituted 5004.4 million USD; From the mentioned amount: 1583.0 million USD was the state debt, 254.2 million USD – debt of NBG, 1291.7 million USD - debt of the banking sector, 474.9 million USD – debt of other sectors, 1400.6 million USD – inter-company debt. 96.9 percent of the total external debt is denominated in a foreign currency.

During the 4th quarter of 2007 the total external debt of Georgia increased by 468.1 million USD, from which the growth of 117.5 million USD falls on the banking sector obligations and 281.1 million USD – on inter-company loans.

Growth of the obligations was mostly reported in a foreign currency (469.2 million USD). As for the debt in the national currency, it has reduced by 1.1 million USD in the reporting period and constituted 156.6 Million USD.

Debt increase was conditioned by new borrowings as well as the depreciation of USD exchange rate against foreign currencies, especially against SDR and EUR. Debt increase caused by the exchange rate changes made 39.5 million USD in the 4th quarter of 2007. The share of exchange rate changes was especially large in the growth of obligations of a state sector and the National Bank of Georgia. Growth of the debt caused by the NBG exchange rate changes constituted 3.9 million USD, while the growth in the public sector equaled 20.7 million USD, which was induced by the large volume of obligations in SDRs (mainly the debt of the World Bank) and EUR. There were significant exchange rate changes of other sectors’ trade loans provided in the national currency.

99% of the growth of banking sector obligations falls on the operational changes. Exchange rate changes did not have a significant impact on the growth of commercial banks’ external debt, as their debts were mostly provided in USD.