The Ministry of Finance released a report revealing that Georgia’s external debt rose by $138 million, reaching $8.7 billion by the end of the month. The increase is one of the most significant monthly increases, driven by shifting currency values rather than new borrowing.
The primary culprit is the Euro’s rally against the US dollar. “Two-thirds of Georgia’s state debt is denominated in Euros,” the ministry explained, “and the strengthening of the Euro directly inflates the debt’s dollar value.”
The Euro appreciated from $1.04 to $1.09, a 5% rise, between February 28 and March 31. The rate stands at $1.14, suggesting Georgia’s debt will continue to increase. “If this trend continues, the external debt may exceed $8.9 billion in April,” analysts warn.
The current structure of Georgia’s external creditors underscores the country’s reliance on international institutions:
- Asian Development Bank (ADB) – $2.29 billion
- World Bank Group – $2.13 billion
- European Investment Bank (EIB) – $1.11 billion
- France (AFD) – $783.6 million
- Germany (KfW) – $582.7 million
- Eurobond – $500 million
- National Bank’s debt to IMF – $358.1 million
- Asian Infrastructure Investment Bank (AIIB) – $215.9 million
- European Bank for Reconstruction and Development (EBRD) – $213.5 million
- IMF (Government debt) – $179 million
- European Union (EU) – $143.3 million
- Japan – $121.8 million
Smaller sums are owed to wide variety of countries including the US ($5.9 million), Russia ($4 million), and regional neighbors Turkey, Armenia, and Azerbaijan.
