International Investment Position of Georgia

International Investment Position of Georgia

International Investment Position of Georgia

The FINANCIAL -- The net international investment position (IIP) of Georgia amounted to -16.8 billion USD (-37.5 billion GEL) for March 31st 2015. This is 103.8 percent of Georgia's GDP.

This figure has increased by 338.4 million USD (753.8 million GEL) compared to the first quarter of 2014, and decreased by 417.4 million USD (865.4 million GEL) compared to the previous quarter. Transactions, price changes and other changes were negative during the quarter, while exchange rate changes were positive. Total international assets amounted to 5.7 billion USD (12.8 billion GEL) as of 31 March 2015. Reserve assets comprise 42.7 percent of total international assets; other investments comprise 31.6 percent; direct investment abroad stood at 24.6 percent; and 1.1 percent is made up of portfolio investment and financial derivatives. A total of 21.7 percent of international assets consist of currency and deposits (currency and deposits of reserve assets are excluded); 6.3 percent consist of trade credits; and 3.2 percent are loans. Reserve assets decreased by 246.3 million USD (510.6 million GEL) during the quarter. By the end of March 2015, reserve assets amounted to 2.5 billion USD (5.5 billion GEL). A total of 184.8 million USD (383.0 million GEL) of the net quarterly changes of reserve assets was transactions, 2.1 million USD (4.3 million GEL) was price changes, and -63.6 million USD (-131.8 million GEL) was a result of exchange rate changes, according to NBG.

By the end of the first quarter of 2015 total liabilities amounted to 22.6 billion USD (50.3 billion GEL), which is a 318.4 billion USD (709.3 billion GEL) annual increase and 801.3 million USD (1.8 billion GEL) increase on the quarterly base. Liabilities to direct investors increased by 175.5 million USD (363.8 million GEL) by transactions and by 78.4 million USD (162.5 million GEL) due to other changes in the first quarter of 2015. Exchange rate changes and price changes were negative accordingly -884.3 million USD (-1.8 billion GEL) and -25.4 million USD (-52.6 million GEL) during the quarter. Total liabilities to direct investors decreased by 655.8 million USD (1.4 billion GEL) and amounted to 11.6 billion USD (25.9 billion GEL). Portfolio investment liabilities decreased by 31.4 million USD (70.0 million GEL) during the quarter and amounted to 2.2 billion USD (4.9 billion GEL). Out of the total portfolio investment liabilities 570.3 million USD (1.3 billion GEL) consist of the Georgian government's Eurobonds and 837.1 million USD (1.9 billion GEL) are Public Enterprises Bonds. Treasury bills and Treasury notes bought by non-residents, totaling 7.0 million USD (15.6 million GEL) are included in this component.

Other investments liabilities decreased by 114.6 million USD (237.7 million GEL) during the quarter and amounted to 8.8 billion USD (19.5 billion GEL) by the 31st of March 2015. Out of that amount, loans comprise 6.7 billion USD (14.9 billion GEL). Monetary authorities' loans decreased by 9.8 million USD (20.2 million GEL) compared to the previous quarter and amounted to 32.8 million USD (73.1 million GEL). External liabilities of the general government decreased by 202.7 million USD (420.1 million GEL) during the quarter. Other long term loans (excluding IMF credits and loans) decreased by 160.1 million USD (332.0 million GEL). Transactions of IMF credit payment comprised 34.2 million USD (70.8 million GEL). The liabilities of the banking sector increased by 72.7 million USD (150.7 million GEL) during the reporting quarter and totaled 1.3 billion USD (2.8 billion GEL) at the end of the quarter. External liabilities of other sectors increased by 63.8 million USD (132.3 million GEL) during the first quarter and amounted to 2.0 billion USD (4.3 billion GEL) as of 31 March 2015. The liabilities of currency and deposits increased by 17.3 million USD (35.9 million GEL) compared to the previous quarter and made up 1.0 billion USD (2.2 billion GEL).

By the end of March 2015, other long term liabilities of the National Bank of Georgia amounted to 198.6 million USD (442.4 million GEL), which is the allocation of Special Drawing Rights (SDR).