For the first time since 2005, Russia’s external debt per capita dropped below $2,000 last year, according to RIA Novosti’s analysis of Central Bank data.
The per capita debt to non-residents has been steadily declining in recent years. In 2019, it stood at $3,349, whereas by 2023, it had dropped to $2,175.
By the end of last year, external liabilities continued their downward trend, reaching $1,987 per capita – an 8.7% decrease over the year. This marks the lowest level since 2005, when it was recorded at $1,802.
The reduction in external debt is attributed to a decline in sovereign securities obligations and a decrease in sector liabilities related to loans and credits.
“The external borrowing market has been virtually closed for Russia since 2022,” notes economist and RANEPA Associate Professor Sergei Khestanov. “However, there is a silver lining: the reduction in Russia’s external debt automatically lowers all associated risks.”
Notably, Russia continues to meet its external debt obligations, even after the freezing of its reserves in 2022. Despite these restrictions, the country managed to make payments using its frozen assets.