Georgia’s foreign debt nears $25 billion

As of June 30, 2024, Georgia’s total external debt reached $24.6 billion, representing 77.9% of the country’s GDP over the last four quarters, according to data from the National Bank of Georgia.

In the second quarter of 2024, total external debt saw an increase of $32.2 million, Caliber.Az reports via Georgian media.

This rise included $276.2 million from operational changes, though it was offset by a reduction of $39.3 million from other adjustments, $33 million from price changes, and $171.7 million due to exchange rate fluctuations.

Breaking down the figures, $11.0 billion of the total debt is attributed to government liabilities, equaling 34.7% of GDP. This includes $8.5 billion in direct government debt, $835.9 million owed by the National Bank, $441.5 million in bonds, and $1.2 billion in loans held by state-owned enterprises.

The banking sector holds $7.6 billion in external debt, private enterprises account for $4.7 billion, and inter-company loans stand at $3 billion.

A significant portion of Georgia’s debt, 88.7%, is denominated in foreign currencies.

As of the same date, Georgia’s net debt totals $12.5 billion, or 39% of GDP, with net government debt comprising $6.4 billion, or 20.2% of GDP.

By Tamilla Hasanova