(Communicated by the MOF Spokesperson)

The Accountant General of the Ministry of Finance, Michal Abadi Boiangiu, published the debt management report for 2013. According to the Accountant General’s Debt Management Department the government debt at the end of 2013 stood at NIS 696.3 billion (compared to NIS 666.8 billion last year). The principle reason for the nominal increase in government debt is a positive net increase in borrowing and an increase in the Consumer Price Index. On the other hand, the low cost of borrowing and the strengthening of the shekel against the Dollar (US), as well as a decrease in the accelerated interest, all contributed to the decrease of government debt.  
  
The downtrend in the government and public debt to GDP ratio continued. Public debt (including local government debt) decreased by 1% and stood on 67.4% of GDP. Government debt decreased by 1% and stood on 66.1% of GDP.
  
On international comparison, it can be noted that Israel's debt to GDP ratio is considerably lower than that of the G-20 countries and the developed economies. Their debt to GDP ratio stood on 115.4% and 108.5% respectively.
                               
In accordance with Accountant General Department policy, in 2013 the Debt Management Unit continued to lengthen the average maturity of government debt from 6.6 to 7.1 years. This action contributed to a decrease in the government debt's cycle risk.
                                  
The Accountant General, Michal Abadi Boiangiu: "The continuing downtrend of the debt to GDP ratio signifies a positive indicator of the improvement in the financial resolve and strengthens Israel's credit rating."
                                
In 2013 the total scope of borrowing was NIS 119 billion and in January 2013 a dual issuance was executed in the global market totalling USD 2 billion, with a maturity of 10.5 and 30 years. At the beginning of 2014 an issuance of €1.5 billion was executed in the European market, with a maturity of 10 years. The issuance was executed after a prolonged absence from the European market and after an extensive round of meetings with foreign investors in Europe. The issuance was characterised by the lowest cost of borrowing paid by Israel in a Euro issuance.