Central bank reports Russia's foreign debt hits lowest level since 2006
According to a report from Russia's central bank, the country's foreign debt has fallen to its lowest level since 2006, with liabilities decreasing to below $300 billion. Read Full Article at RT.com.
TroibNews 
The debt owed by the Russian government and private businesses to foreign financial institutions has fallen below $300 billion for the first time since 2006, according to a report from the Bank of Russia released on Friday.
As of October 1, the total foreign liabilities stood at $293.4 billion, reflecting a decrease of $24.5 billion, or 7.7%, since the beginning of 2024. This information was shared in an official statement from the central bank.
External debt represents the portion of a nation's national debt that is borrowed from international lenders, including banks, the IMF, foreign companies, and other creditors.
“The dynamics were influenced by the reduction in other sectors’ liabilities mainly on raised loans, including within the framework of direct investment relations,” the regulator’s statement indicates.
According to its data, foreign debt fell by $8.5 billion, or nearly 3%, during the third quarter, largely due to a decrease in liabilities in the real sector of the economy.
The public sector also saw a reduction in its external liabilities, decreasing by $1.3 billion, or 4.2% per quarter, bringing its total debt to just under $31 billion, the lowest level since the end of 2015.
In contrast, the central bank and credit institutions raised their overseas debt by almost $4 billion, or 4.1%, in the July-to-September period, reaching a two-year high of $101.5 billion, as noted in the report.
Historically, Russia’s foreign debt peaked at over $700 billion in 2014. Since then, the liabilities have consistently declined, primarily due to Western sanctions imposed following the Crimean reunification and a subsequent withdrawal of capital by foreign investors. The intensified sanctions campaign initiated by the West against Moscow since 2022 has further accelerated the decline in foreign debt.
Last month, the country’s foreign ministry reported that the national debt remains at an “economically safe” level of less than 20% of GDP, placing Russia among nations with the lowest levels of state debt.
For context, the UK’s national debt recently surpassed 100% of its annual economic output. Meanwhile, state debt in the US exceeds 120% of GDP, and Japan's stands at a record 260%.
Alejandro Jose Martinez for TROIB News
As of October 1, the total foreign liabilities stood at $293.4 billion, reflecting a decrease of $24.5 billion, or 7.7%, since the beginning of 2024. This information was shared in an official statement from the central bank.
External debt represents the portion of a nation's national debt that is borrowed from international lenders, including banks, the IMF, foreign companies, and other creditors.
“The dynamics were influenced by the reduction in other sectors’ liabilities mainly on raised loans, including within the framework of direct investment relations,” the regulator’s statement indicates.
According to its data, foreign debt fell by $8.5 billion, or nearly 3%, during the third quarter, largely due to a decrease in liabilities in the real sector of the economy.
The public sector also saw a reduction in its external liabilities, decreasing by $1.3 billion, or 4.2% per quarter, bringing its total debt to just under $31 billion, the lowest level since the end of 2015.
In contrast, the central bank and credit institutions raised their overseas debt by almost $4 billion, or 4.1%, in the July-to-September period, reaching a two-year high of $101.5 billion, as noted in the report.
Historically, Russia’s foreign debt peaked at over $700 billion in 2014. Since then, the liabilities have consistently declined, primarily due to Western sanctions imposed following the Crimean reunification and a subsequent withdrawal of capital by foreign investors. The intensified sanctions campaign initiated by the West against Moscow since 2022 has further accelerated the decline in foreign debt.
Last month, the country’s foreign ministry reported that the national debt remains at an “economically safe” level of less than 20% of GDP, placing Russia among nations with the lowest levels of state debt.
For context, the UK’s national debt recently surpassed 100% of its annual economic output. Meanwhile, state debt in the US exceeds 120% of GDP, and Japan's stands at a record 260%.
Alejandro Jose Martinez for TROIB News
