Canada net foreign debt halved in second quarter

Thu Sep 12, 2013 8:43am EDT
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OTTAWA (Reuters) - Canada's net foreign debt shrank by more than 50 percent in the second quarter to its lowest level since 2007, the result of a weaker currency and declines on the domestic stock market, Statistics Canada said on Thursday.

Net foreign debt fell to C$103.7 billion ($100.7 billion) from C$226.1 billion in the first quarter, the agency said.

The depreciation of the Canadian dollar against most major currencies boosted the value of the country's foreign currency-denominated international assets in the quarter.

The assets rose in value to C$2.57 trillion from C$2.51 trillion in the first quarter.

At the same time, liabilities decreased to C$2.68 trillion from C$2.74 trillion in the first quarter because of declines on Canadian stock markets. However, the weaker currency caused upward revaluations of liabilities, moderating the overall decrease.

($1 = $1.03 Canadian)

(Reporting by Louise Egan and Alex Paterson; Editing by Chizu Nomiyama)