BOFIT Weekly Review 2015/29
Russia’s foreign debt remains unchanged
The Central Bank of Russia estimates that Russia’s foreign debt stood at nearly $560 billion (30 % of GDP) as of end-June. Russia’s second-quarter foreign debt remained practically unchanged from the first quarter as banks paid down their foreign debt while other firms acquired more of it.
However, the value of foreign debt has contracted sharply compared to a year ago. As of end-June 2014, Russia’s foreign debt was still $730 billion. While a substantial amount of debt has actually been repaid, part of the decline reflects exchange rate fluctuations. About a fifth of Russian foreign debt is denominated in rubles.
Russia’s public-sector foreign debt amounted to $35 billion at the end of June. Banks’ foreign debt stood at $150 billion and that of other firms at $360 billion. State-controlled firms accounted for more than 60 % of banks’ foreign debt and for about 40 % of other firms’ foreign debt.
The CBR estimates debt servicing obligations coming due in the second half of this year will total nearly $80 billion.