Georgia's foreign debt exceeded $8 billion for the first time. According to the Ministry of Finance report, as of April 30, 2021, the balance of Georgia's foreign debt is $8 billion, or 27.6 billion GEL. Foreign debt increased by $215 million compared to January 2021.
Debt growth is higher if we look at its statistics in national currency. Compared to January, the external debt in GEL increased by 1.89 billion GEL, the main factor of which is the depreciation of the national currency exchange rate.
In addition to foreign debt, the state also has domestic debt, 100% in GEL. The government takes on domestic debt through the issuance of treasury bonds. The volume of domestic debt is unchanged, amounting to 5.87 billion. Accordingly, the total volume of Georgia's domestic and foreign debt is 33.49 billion GEL. At present, public debt exceeds 60% of GDP.
In 2021, the Georgian government will take a new debt of 5.27 billion GEL, of which $ 500 million will be refinancing Eurobonds.
Public debt is 33.49 billion GEL. Which countries and international organizations does Georgia owe?
1) World Bank Group (IDA and IBRD) - GEL 7.09 billion;
2) Asian Development Bank (ADB) - GEL 6.07 billion;
3) European Investment Bank (EIB) - GEL 2.62 billion;
4) Germany (KFW) - 2.52 billion GEL;
5) France (AFD) - 1.97 billion GEL;
6) Eurobond - 1.72 billion GEL;
7) Debt of the National Bank to the Monetary Fund (IMF) 1.66 billion GEL;
8) European Bank for Reconstruction and Development (EBRD) - GEL 791 million;
9) Government debt to the International Monetary Fund (IMF) - GEL 728 million;
10) Japan - 706 million GEL;
11) Asian Infrastructure Investment Bank (AIIB) - GEL 625 million;
12) European Union (EU) - 556 million GEL;
13) Russia - 129 million GEL;
14) International Fund for Agricultural Development (IFAD) - 126 million GEL;
15) Austria - GEL 65 million;
16) America - 52 million GEL;
17) Turkey - 34 million GEL;
18) Kuwait - 31 million GEL;
19) Kazakhstan - GEL 27 million;
20) Armenia - 18 million GEL;
21) Azerbaijan - 17 million GEL;
22) Iran - 13 million GEL;
23) Council of Europe Development Bank (CEB) - GEL 11 million;
24) Scandinavian Environmental Finance Corporation (NEFCO) - GEL 8.3 million;
25) China - 1.6 million GEL;
26) Netherlands - 1.3 million GEL;
27) Turkmenistan - 0.7 million GEL;
28) Uzbekistan - 0.2 million GEL;
29) Ukraine - 0.2 million GEL;
1) Treasury securities (treasury bonds; treasury liabilities) - 5.5 billion GEL;
2) Other securities - GEL 342 million;
3) Debt in the form of loans to budget organizations - 31 million GEL.
International rating agency S&P Global forecasts a record increase in Georgia's public debt this year. The macroeconomic report published by the organization shows that by the end of 2021, public debt will reach 69.5% of the country's gross domestic product, an increase of 5.9 percentage points from the current 63.6%. S&P Global directly blames the new external debt and the possible devaluation of the national currency as the main drivers of this growth, due to which the volume of foreign debt denominated in GEL may increase.