Page 29 - GEORptApr20
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     Citigroup interested in financing Georgia’s public debt
   The gross external debt of Georgia amounted to $17.8bn as of third quarter of 2019, falling from $18.2bnbn in the previous quarter. External debt averaged $11,420.4mn from 2007-2017, ​according to the National Bank of Georgia. It accounted for 109.6% of GDP. Gross external debt include both public sector (general government, public corporations and national bank) and private sector (banking and other sectors) external debt.
Georgia’s government debt is expected to inflate to 3.5% of GDP in 2017-2019, ​in part due to the depreciation of the Georgian lari and the high level of dollarisation of Georgia's external debt.
American investment bank Citigroup is interested in investing in financial markets development in Georgia and is willing to buy a volume of the securities issued by the country’s treasury, the bank’s vice chairman Jay Collins said at a meeting with Georgian Prime Minister Giorgi Gakharia at the World Economic Forum in Davos.
Citigroup would discuss with the Georgian government engagement in the process of budget expenditure digitisation using modern accounting and payment systems and share its experience in the field, according to a government release.
The bank also expressed its willingness to participate in refinancing the government's EUR-denominated securities, amounting to €500mn, in 2021.
“There was a great conversation with the Prime Minister of Georgia. We talked about economics and technologies, specifically the technologies used in the government sector for efficiency and effectiveness. We discussed investments and ways in which Georgia could attract more capital investment. We also talked about the financing strategy and the financing of processes in the global markets. Overall it was a brilliant meeting. It makes us happy about everything that is happening in Georgia,” said Citigroup’s Collins after meeting Gakharia.
 7.0​ FX
    Georgia - Foreign exchange rate
 2016
  2017
   2018
  Mar’19
   Jun’19
  Sep’19
   Dec’19
 Jan’20
   Feb’20
   Currency (units per EUR) (average)
    2.617
2.832
    3.054
3.037
    3.132
3.266
 3.227
    3.203
 3.112
 Currency (units per USD) (average)
  2.367
  2.509
   2.675
  2.684
   2.777
  2.965
   2.905
  2.883
   2.852
    Georgia’s c​entral bank intervenes as lari plunges
  Georgia’s currency, the lari (GEL), weakened by 6.5% versus the dollar and 8.3% against the euro on March 24, leading to the central bank, the National Bank of Georgia (NBG), opting to sell $40mn into the market on March 25.
The national lender had already sold $60mn in two similar interventions since the currency came under pressure a couple of weeks ago.
The latest move was announced after the GEL reached 3.45 to the USD. The GEL was valued at 2.78 to the USD on March 8, when it marked a 3.2% ytd gain. In just over one week, the currency plunged by 7.2% amid the
 29​ GEORGIA Country Report ​April 2020 ​ ​www.intellinews.com
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