Short-term External Debt Ratio at 24.3% in Q2... Lowest Since the Foreign Exchange Crisis

Short-term External Debt $11.8 Billion ↓, Long-term External Debt $11.9 Billion ↑

The proportion of short-term external debt in the second quarter of this year recorded the lowest level since the foreign exchange crisis at 24.3%.

According to the Ministry of Economy and Finance on the 23rd, the share of short-term external debt in total external debt fell by 1.8 percentage points from 26.1% in the first quarter. Excluding the foreign exchange crisis period (Q3 1998 to Q2 1999), when short-term borrowing was virtually impossible, this is the lowest level.

During the same period, the ratio of short-term external debt within holdings also declined from 40.8% to 38.4%, improving the soundness indicators of external debt. The foreign currency liquidity coverage ratio (LCR), which indicates domestic banks' ability to repay external debt, stood at 144.6% as of June, significantly exceeding the regulatory ratio of 80%.

Total external liabilities were $665.1 billion, similar to $665.0 billion at the end of the previous quarter. By maturity, short-term external debt (maturity within one year) decreased by $11.8 billion to $161.9 billion, while long-term external debt (maturity over one year) increased by $11.9 billion to $503.2 billion.

By sector, external debt increased for the government (+$12.8 billion) and the central bank (+$2.9 billion), while it decreased for banks (-$14.4 billion) and other sectors (-$1.2 billion).

External assets decreased by $2.3 billion from the previous quarter to $1.0189 trillion due to a decline in foreign exchange reserves. Net external assets (external assets minus external liabilities) also slightly decreased by $2.4 billion to $353.8 billion.