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.