Financial institution of Israel Releases Israel’s Worldwide Funding Place (IIP), Second Quarter of 2021

The Financial institution of Israel has launched its knowledge on the stability of belongings and the stability of debt held by Israelis overseas for the second quarter of 2021.

Within the second quarter of 2021, the stability of belongings held overseas by Israeli residents elevated by roughly $36 billion (6 %), to about $666 billion on the finish of June. The rise derived primarily from development within the international securities portfolio and in reserve belongings.

Excellent liabilities to overseas elevated by roughly $46 billion (11 %) within the second quarter, to about $480 billion on the finish of the quarter. The rise derived primarily from web funding by nonresidents totaling $15 billion and from value will increase of $10 billion within the portfolio of Israeli securities.
Israel’s surplus of belongings over liabilities vis-à-vis overseas within the second quarter decreased by roughly $10 billion (5.2 %), to about $186 billion on the finish of the quarter.

The excess of belongings over liabilities vis-à-vis overseas in debt devices alone (damaging web exterior debt) elevated by $9 billion (5 %) through the second quarter, to roughly $211 billion at quarter finish.

The ratio of gross exterior debt to GDP decreased by 0.1 share factors through the course of the second quarter, to 33.5 % on the finish of June. The decline within the debt to GDP ratio mirrored a rise of 5.4 % within the stability of exterior debt and a rise of 5.6 % in GDP (in greenback phrases).

Desk 1: Asset and legal responsibility balances, and modifications in them

1. The stability of Israel’s belongings overseas
Within the second quarter of 2021, the worth of the belongings held overseas by Israeli residents elevated by about $36 billion (6 %) to about $666 billion on the finish of June.
The rise within the stability derived primarily from a rise within the worth of the international securities portfolio and development in reserve belongings.

2. Israel’s liabilities to overseas

The stability of Israel’s liabilities to overseas elevated by about $46 billion (11 %) within the second quarter, to about $480 billion on the finish of the quarter. The rise derived primarily from $15 billion in web investments and by a rise in costs of Israeli securities of about $10 billion.

The worth of different investments within the economic system elevated by about $4 billion (7 %) within the second quarter, to $58 billion. The rise within the stability was primarily resulting from development in suppliers’ credit score of about $2 billion.

The stability of liabilities in debt devices alone, which makes up Israel’s gross exterior debt, elevated by about $8 billion (5 %) within the second quarter, to $148 billion, primarily because of web funding in bonds and development in suppliers’ credit score.

The ratio of gross exterior debt to GDP decreased by 0.1 share factors through the course of the second quarter, to 33.5 % on the finish of June. The lower within the debt to GDP ratio mirrored a rise of 5.4 % within the stability of exterior debt versus a rise of 5.6 % in GDP (in greenback phrases). (Determine 4)

3. Israel’s surplus belongings over liabilities vis-à-vis overseas

A rise in excellent liabilities that was better than a rise in excellent belongings led to a lower of $10 billion (5.2 %) in surplus belongings over liabilities vis-à-vis overseas, which totaled about $186 billion on the finish of June (Determine 5).

4. Web exterior debt

The excess of belongings over liabilities vis-à-vis overseas in debt devices alone (damaging web exterior debt) elevated by $9 billion (5 %) through the second quarter, to $211 billion on the finish of June (Determine 6).
The stability of short-term debt belongings (maturity/realization inside a 12 months) elevated within the second quarter by $17 billion, to $359 billion on the finish of the quarter, of which $200 billion is the Financial institution of Israel’s international trade reserves. This displays a protection ratio of 4.5 instances short-term debt.

Bank of Israel Releases Israel’s International Investment Position (IIP), Second Quarter of 2021