Russia’s external debt repayments (incl. interest and principal) will reach USD21.5bn in Q3, according to data published by the CBR on Wednesday. This compares with USD36.7bn debt repayments in Q2, which is expected to be the biggest quarterly figure in 2017-2018. The Q3 outcome would be the lowest figure this year as all sectors are expected to repay somewhat lower-than-normal debt loads. The real sector accounts for the bulk of debt repayments (USD16bn), followed by banks (USD4.5bn). The government has to repay less than USD1bn during the third quarter. The biggest debt repayments are scheduled to take place in September. Going forward, the CBR estimates that external debt repayments would increase again towards year-end and early next year before falling tangibly afterwards.
Russia’s gross external debt rose by USD3.9bn in Q2 to reach USD529.6bn at the end of period as public debt grew by USD8.8bn. Going forward, gross external debt is likely to increase further given the CBR’s expectations for lower debt repayments in Q3 and taking into account that corporate Eurobond issuance gained momentum, something which is likely to continue in the short run.