According to the Bank of Russia’s annual report for 2023, the country’s external debt amounted to $316.8 billion, the lowest figure since 2007, when the debt was $313.2 billion. During the 12 months of the last financial year, external debt decreased by $68.2 billion, equivalent to 17.7%.
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The report also notes that the overall reduction was achieved by reducing public sector debt and “other” sectors of the economy, as banking sector debt ($94.7 billion) remained virtually unchanged.
External debt by sector, according to documents of the Central Bank of the Russian Federation:
- government authorities put in 32.7 billion dollars (debt decreased by a third),
- Liabilities on public securities in foreign currency: 14.8 billion (-9.2%),
- obligations under OFZ: $16,537 million (a decrease of 41.2%),
- “other” sectors of the economy: $189.4 billion (a decrease of $55.4 billion).
In this sense, the relationship between external debt and GDP decreased (from 16.5% to 15.8%) and the external debt of government agencies with respect to GDP (from 2% to 1.6%).
Among other things, the Central Bank reported profits for the first time in six years due to “a positive revaluation of securities that reflected a negative revaluation in 2022.” The profit of the Bank of Russia amounted to 140.4 billion rubles.
The report also shows the positive impact of repeated increases in the key rate on inflation indicators (at the end of the year it amounted to 7.4%) and GDP growth (3.6%). Both indicators do not correspond to forecasts.
On the other hand, the Central Bank highlights the key results of support measures for citizens and businesses. For example, the growth of loans to large corporations and SMEs, the frequent use of the SBP among entrepreneurs. The bank also provides data on DFA issues (65 billion rubles) and, without comparison with previous years, on IPOs (raised 40.5 billion rubles).
Author:
Ekaterina Alipova
Source: RB
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