Corporate sector overseas debt rising again after four quarterly falls

Corporate sector overseas debt rising again after four quarterly falls

The corporate sector's overseas debt is on the rise again, increasing by NZ$2.3 billion in the three months to June to reach NZ$219.1 billion.

Reserve Bank data shows the increase at June 30 from NZ$216.8 billion at March 31. As a percentage of Gross Domestic Product (GDP), however, corporate overseas debt held steady at 115.7%.

The June quarter rise in corporate sector overseas debt comes after four straight quarterly falls from NZ$233.4 billion, or 126.8%, at March 31, 2009.

Government sector debt, meanwhile, rose just under NZ$3 billion in the three months to June 30 to NZ$27.35 billion from NZ$24.39 billion. As a percentage of GDP it rose to 14.5% from 13%.

Total overseas debt stood at NZ$246.46 billion at June 30, up nearly NZ$5.3 billion in three months, from NZ$241.2 billion at March 31. It rose to 130% of GDP from 128.8%. The total figure is, however, down from the recent peak of NZ$253.8 billion at March 31 last year, the equivalent of 137.9% of GDP.

 

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What the hell are our corporates borrowing to do?

regards

Revenue and profits struggling: So, paying interest that's due, overseas?

"What the hell are our corporates borrowing to do?"

They're borrowing to pay off their debts, what could possibly go wrong.