Net International Investment Position (IIP) of Georgia by the end of the second quarter of 2011 amounted to USD13.3 billion that translates into USD 1.8 billion increase on yearly base, National Bank of Georgia reported on September 30, 2011.
Of total growth, 73.6 percent was due to operational changes; 17.9 percent – due to exchange rate changes; 3.7 percent – due to price changes, and 4.8 percent – due to other changes. Total international assets amounted to USD 3.8 billion of which 73.1 percent consists of reserve assets; 14.0 percent – currency and deposits; 7.8 percent – trade credits; 2.8 percent – loans, and 2.1 percent – direct investments.
Reserve assets increased by USD 894.8 million that is 48.0 percent growth on yearly basis. Reserve assets amounted to USD 2.8 billion by the end of the reporting period, of which USD 751.5 million  was due to operational changes; USD 141.2 million – due to exchange rate changes, and USD 2.1 million – due to other changes.
As for liabilities, for the same period, total liabilities amounted to USD 17 billion that is USD 2.5 billion increase on yearly base.  Liabilities to direct investors increased by 13.9 percent and amounted to USD 8.7 billion. Portfolio investment liabilities grew by 49.3 percent yearly, mainly due to issue of Eurobonds by Georgian Railways. Portfolio investment liabilities amounted to USD 1.3 billion of which USD 550.6 million is government Eurobonds.
By the end of the reporting period, as compared to the preceding year, other investments liabilities increased by 17.3 percent and amounted to USD 7.1 billion. Out of the figure loans comprised USD 5.8 billion. Monetary authorities’ loans increased by 4.0 percent as compared to the second quarter of 2010 due to exchange rate changes and amounted to USD 665.8 million.
External liabilities of public sector grew by 27.4 percent due to International Monetary Fund credits and other long term liabilities. Banking sector loans increased by 7.7 percentage points, of which long term liabilities declined by 6.7 percent while short-term liabilities almost tripled and amounted to USD 252.5 million. Cash and deposits liabilities increased by 73.3 percentage points compared to the previous year.
By the end of the second quarter of 2011, the other long term liabilities of the National Bank of Georgia reached USD 230.6 million which is the allocation of Special Drawing Rights (SDR).

Source: www.www.georgianjournal.ge