The Israeli economy has turned from a borrower into a lender on world markets. The world’s debts to Israel totaled $23.06 billion at the end of September, double the $11.53 billion owed Israel at the end of December 2004, according to figures published today by the Bank of Israel.
Israel has a large $39.59 billion surplus of short-term assets (up to one year), $4.7 billion more than in December last year.
Israel has a net long-term external debt of $16.53 billion, most of which is government debt. The surplus of short-term assets is a key element in estimating risk for the Israeli economy, which means that the surplus contributes to improving Israel’s credit rating.
Israel’s gross external debt totaled $72.97 billion at the end of September, down $1.27 billion, or 1.7%, compared with the end of December 2004.
The ratio of marketable debt to gross external debt remained stable at 31%. This reflects continued integration of the Israeli economy in global financial markets, and highlights the ability of various sectors to raise money overseas on easy terms.
The balance of overseas liabilities of the Israeli economy, net of assets, totaled $29 billion in September, $5.4 billion less than in December last year.
Overseas assets of the Israeli economy totaled $113 billion, $12.5 billion more than in December 2004. This growth is due mostly to increased foreign investment in marketable securities, as well as the process of adjusting portfolios in all sectors.
Published by Globes [online] - www.globes.co.il - on December 19, 2005