Georgia’s gross external debt rose to $25.5 billion in the first quarter of 2025, marking a $1 billion increase compared to the same period last year, according to newly released data from the National Bank of Georgia. The growth is largely attributed to an increase in private sector borrowing, while the public sector debt remained unchanged.
As of Q1 2025, the total external debt of Georgia’s public sector stands at $11 billion (GEL 30.4 billion), accounting for 32% of the country’s GDP. This includes:
Government debt: $8.5 billion (23.5 billion GEL; 24.7% of GDP)
National Bank liabilities: $822.8 million (2.3 billion GEL; 2.4% of GDP)
State-owned enterprises:
- Bonds: $449 million (1.2 billion GEL; 1.3% of GDP)
- Loans: $1.2 billion (3.4 billion GEL; 3.6% of GDP)
The external debt of Georgia’s private sector continued its upward trend, totaling:
- Banking sector: $8.6 billion (23.9 billion GEL; 25.1% of GDP)
- Other sectors: $4.9 billion (13.5 billion GEL; 14.2% of GDP)
- Inter-company debt: $2.7 billion (7.4 billion GEL; 7.8% of GDP)
The National Bank notes that 88.6% of total external debt is denominated in foreign currencies, which raises exposure to exchange rate risks.
In the first quarter, the National Bank’s external liabilities increased by $11.2 million, mainly due to foreign exchange rate changes (+$15.1 million), partially offset by other operational adjustments (-$4 million). Total liabilities now stand at $822.8 million, of which $461.6 million are Special Drawing Rights (SDRs) allocated by the IMF. These funds are not subject to repayment unless Georgia exits the IMF.
