According to a Globes report, global debt to Israel rose 92% over the past year.
Most of the debt ($22.7 billion) is to the private sector and Israel banks are owed $3.1 billion. The public sector, though, led by the Israeli government, continues to borrow, in order to recycle debts and cover budget deficits.
Israel’s gross external debt was $75.5 billion in 2005, a drop of $250 million.
“The balance of Israel's external liabilities totaled some $153 billion at the end of December 2005, a rise of $16.5 billion in 2005,” a Bank of Israel statement read. “This is a positive development, caused by sizeable foreign direct and portfolio investment…The increased profitability of the business sector, the contraction of the budget deficit, the improved geopolitical situation and the accelerated pace of privatization (the sale of Bank Leumi and Israel Discount Bank) enabled Israel's economy to attract an unprecedented amount of non-resident investment and to benefit from the global trend of international flows of capital into the emerging markets.”