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6.2 Debt
Georgia - Gross external debt
4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Gross external debt ($ mn)
17,319 17,809 17,461 17,299 17,812 17,822 18,232 17,902 18,631 18,282
2011 2012 2013 2014 2015 2016 2017 2018 2019
Gross external debt (% GDP)
81.2 84.6 83.2 84.7 109.4 110.7 106.4 101.3 105.4
source: CEIC, World Bank
Georgia's public debt nears 43% of GDP at end-January
Citigroup interested in financing Georgia’s public debt
Georgia's public external debt hit $5.68bn (Georgian lari, or GEL, 16.43bn), or nearly 33% of GDP, as of January 31, according to the Georgian Ministry of Finance. When GEL4.20bn (9% of GDP) worth of domestic public debt is added, it results in a total public debt of nearly 43% of GDP.
The external public debt is $63.2mn less than was recorded in the previous month and $210.4mn more than in the same period of last year.
The largest creditors of the State of Georgia are the Asian Development Bank (ADB), World Bank International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). Georgia’s debt to the ADB is $1.24bn, to the IDA $948mn and to the IBRD $800mn.
As for other financial institutions, the list of debtors includes the EU’s European Investment Bank (EIB) to which $558.4mn is owed and the European Bank for Reconstruction and Development (EBRD), which a debt of $124.3mn is owed to. As for other states, Germany is the leading bilateral creditor. Georgia's public external debt with Berlin stands at $369mn.
The gross external debt of Georgia amounted to $18.28bn as of first quarter of 2020, falling from $18.63bn in the fourth quarter of last year. It accounted for 105.4% of GDP in 2019. Gross external debt include both public sector (general government, public corporations and national bank) and private sector (banking and other sectors) 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.
31 GEORGIA Country Report August 2020 www.intellinews.com
