01.Jul .2022 11:00

The Foreign Debt Of Georgian Business Exceeds USD 9.9 BLN

The Foreign Debt Of Georgian Business Exceeds USD 9.9 BLN
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The National Bank of Georgia (NBG) published a report. According to the document, external debt of the private sector reached USD 9.9 billion this year. Including, commercial banks’ external debt made up USD 5 billion, while the debt of other companies is USD 4.9 billion. Part of this debt is debt to the founders of companies, and the other part is debt to foreign credit institutions.

As a whole, the foreign debt of the private and state sectors of Georgia reaches USD 22.1 billion. Of this, the state debt, including the debt of state companies, is USD 10.4 billion.

"The external debt of the banking sector amounted to USD 5.0 billion (or GEL 15.4 billion; 25.0% of GDP), the external debt of other sectors - USD 4.9 billion (or GEL 15.3 billion; 24.8 % of GDP) and the intercompany debt - USD 3.5 billion (or GEL 10.7 billion; 17.3% of GDP). 90.9% of the total external debt is denominated in foreign currency.

State foreign debt amounted to USD 10.4 billion (or GEL 32.2 billion), which is 52.1% of GDP. Of this, the debt of the government sector is USD 7.8 billion (or GEL 24.0 billion; 38.9% of GDP), liabilities of the National Bank - USD 942.6 million (or GEL 2.9 billion; 4.7% of GDP), and bonds and loans of state enterprises, respectively, USD 438.5 million (or GEL 1.4 billion; 2.2% of GDP) and USD 1.2 billion (or GEL 3.9 billion; 6.3% of GDP).

As of March 31, 2022, the net foreign debt of Georgia amounted to 13.3 billion US dollars (41.4 billion GEL), which is 67.0 percent of the GDP of the last four quarters. From this, the net foreign debt of the state sector is 6.3 billion US dollars (19.6 billion GEL), which is 31.7 percent of GDP.

In 1Q2022, the foreign debt of the National Bank of Georgia decreased by USD 11.6 million. From this, due to operational changes, the debt increased by USD 130.6 thousand, and due to the exchange rate change, the foreign liabilities of the National Bank decreased by USD 11.7 million. At the end of the first quarter of 2022, the total foreign liabilities of the National Bank amounted to USD 942.6 million. Out of this, USD 477.9 million is distributed Special Drawing Right (SDR) 1, which has no maturity date and practically, its payment obligation will not arise as long as Georgia is a member of the International Monetary Fund.

As of March 31, 2022, the total foreign debt of Georgia amounted to USD 22.1 billion (or GEL 68.4 billion), which is 110.8% of the GDP of the last four quarters. In the first quarter of 2022, the total foreign debt of Georgia increased by USD 6.1 million. From this, due to the operational change, the debt is 384.6 million," the statistics published by the National Bank state.