Russia's external debt declines $7 bln to nearly $347.7 bln in Q2 - Central Bank

MOSCOW. July 13 (Interfax) - Russia's external debt declined $7.096 billion, or 2%, to $347.655 billion in the second quarter of 2023, the Central Bank of Russia (CBR) said in a statement posted on its website.

Russia's external liabilities in Q1 decreased $25.875 billion, or 6.8%, to $354.751 billion from $380.626 billion. As a result, in H1 2023, Russia's external debt decreased by $32.971 billion, or 8.7%, to its lowest level since January 1, 2007, when it was $313.214 billion.

To a large extent, the dynamics of the indicator were determined by the reduction in liabilities of other sectors related to debt instruments, including as part of direct investment relationships, which was partly due to the implementation of the mechanism for issuing replacement bonds. An important role was played by the decrease in the debt of state administration bodies, due to the sale of sovereign securities by non-residents, the Russian Central Bank said.

The debt of state administration bodies decreased in the Q2 by $3.445 billion, or 8.5%, to $36.990 billion; in H1, it decreased $9.114 billion, or 19.8%, from $46.104 billion as of January 1, 2023.

The external debt of the banking sector (banks and the CBR) increased over the second quarter by $2.339, or 2.6%, to $93.967 billion. In H1, the debt increased by $329 million, or 0.4%, from $93.638 billion.

At the same time, the external debt of other sectors of the economy decreased in Q2 by $5.989 billion, or 2.7%, to $216.698 billion, while in H2, it decreased by $24.187 billion, or 10.0%, from $240.885 billion.