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National Bank Publishes Report on Georgia’s International Investment Position

According to the National Bank data, Georgia’s  net international investment (IIP) position amounted to  USD 16.7 billion ( GEL 29.5 billion) as of  June 30, 2014, that is 102.0 per cent of GDP. This figure reduced by USD 771.8 million ( GEL 1.4 billion) compared with the corresponding period of the previous year, while compared with the previous quarter by  USD 310.8 million ( GEL 550 million).

During the second quarter of 2014, transactions, price changes were negative, exchange rate changes and other changes – positive. As of June 30, 2014, total international assets amounted to USD 5.8 billion8 (GEL 10.2 billion). 43.2 percent out of total international assets consists of reserve assets; 31.0percent – of other investments; 24.7 percent – of direct investment; and 1.1 percent of portfolio investment and financial derivatives.

22.5 percent of total international assets consists of currency and deposits; 6.5 percent – of trade credits; 1.7 percent – of loans. Reserve assets increased by 160.3 million USD (260.9 million GEL) compared to the record of 30th of September 2011. Reserve assets reduced by  USD 100.5 billion (GEL177.7 billion) compared with the previous quarter and amounted to  USD 2.5 billion (GEL 4.4 billion) .

As for liabilities, at the end of the 2nd quarter, total liabilities amounted to USD 22.5 billion  (GEL 39.7billion), that is USD 726.3 million (GEL 1.3 billion) more than in the same period of the previous year.  Liabilities to direct investors increased by 11.2 percent and amounted to 10.3 billions of USD (17.0 billion GEL). Portfolio investment liabilities grew by USD 310.4 million  (GEL 549.1 million) and amounted to USD 2.3 billion ( GEL 4.1 billion) , of which USD 575.5 million (GEL 1.0 billion) is government Eurobonds, USD 613.8 million  (GEL 1.0 billion) – Eurobonds of Georgian railway and USD 269.8 million (GEL  476.8million) – Georgian Oil and Gas Corporation bonds. Treasury bills and treasury notes bought by non-residents, total 126.6 millions of USD (210.0 million GEL) is also included in this component.

Other investments liabilities decreased by  USD  18.4 million and amounted to USD 8.5 billion (GEL 15.0billion) as of June 30. From that amount loans comprise USD 6.5 billion (GEL 11.5 billion). Monetary authorities’ loans decreased by USD 12.6  million (GEL 22.2 million) during a quarter  and amounted to USD 64.5 billion (GEL 114.1 million). External liabilities of general government grew by USD  5.6 million(GEL 9.9 million).

Banking sector loans increased by USD 10.6 million ( GEL 18.7 million)  and totaled USD 1.2 billion (GEL2.1 billion) as for June  2014. Long term liabilities increased by 6.4 percent and short-term liabilities increased by 3.9 percent respectively. Currency and deposits liabilities slightly decreased by  USD 0.9 million ( GEL 1.7 million)  compared to the previous period and reached USD 923.9 million (GEL 1.6billion) at the end of the 1st quarter.

By the end of June  of 2014, the other long term liabilities of the National Bank of Georgia reached USD222.6 million (GEL 393.8 million), which is the allocation of Special Drawing Rights (SDR).