Georgia’s Gross Foreign Debts USD 8.397bln

Gross External Debt of Georgia by September 30st of 2009 amounted to 8397.4 million of USD, of which 2658.2 million of USD (31.7%) is public sector debt, 927.2 million of USD (11.0%) - National Bank debt, 1549.1 million of USD (18.4%) - Banking sector debt, 1214.2 million of USD (14.5%) - other sector’s debt and 2048.7 million of USD (24.4%) is intercompany lending. The 95.3 percent of the Gross External Debt of Georgia is denominated in foreign currency.

During the third quarter of 2009, Gross External Debt of Georgia increased by 617.0 million of USD, of which 332.5 million of USD comes from the public sector. The National Bank’s foreign liabilities increased considerably (circa 280.0 million of USD). Other sectors’ external debt and intercompany lending enlarged as well, by 72.2and 4.5 millions of USD respectively. Contrary, external liabilities of banking sector decreased significantly and diminution accounted 71.7 million of USD.
Increase of liabilities was observed in loans denominated in foreign currency.

During the reporting period gross external debt in foreign currency has enlarged by 630.1 million of USD and for the end of the quarter amounted to 8005.7 million of USD. While external debt denominated in national currency has declined by 13.1 million of USD and by the end reporting period stood at 391.6 million of USD.

Such significant growth of the public sector’s external debt mainly was caused by operational changes (293.0 million of USD or 88% of growth). All the rest of debt increase (39.6 million of USD or 12% of growth) in public sector was resulted from exchange rate changes.

Within the third quarter external liabilities of the National Bank has increased by 279.6 million of USD. From which, 263.2 million of USD growth in indebtedness was due to the operational changes (225.5 million of USD of which are liabilities arisen from the new allocations of SDR and the rest is debt to the International Monetary Fund). Exchange rate changes led to increase NBG’s debt by 16.3 million of USD.

External debt reduction process is still persisting in the banking sector. During the corresponding period, short-term and long-term loans of the banking sector declined by 29.3 and 42.4 million of USD respectively. Exchange rate changes caused increase in banking sector’s liabilities by 1.2 million of USD.

During the third quarter of 2009, operational changes led to increase the gross external debt of Georgia by 548.1 million of USD. At the same time, due to exchange rate changes it has enlarged by 69.5 million of USD.