Sentences with phrase «australian foreign debt»

The rise in payments on debt is consistent with the growth in the stock of Australian foreign debt, while the increase in payments on equity coincides with a period of strong growth in Australian corporate profitability.

Not exact matches

This in turn reflected a compositional shift towards equity liabilities (which are denominated almost entirely in Australian dollars) and away from debt liabilities (some of which are denominated in foreign currencies).

The rise in payments on foreign debt in the December quarter was partly offset by a decline in dividend payments on foreign holdings of Australian equity.

Then, as the Australian Government reduced the stock of outstanding government debt, the Bank increasingly used foreign exchange swaps to manage domestic liquidity, and since 2004, we have also used repos in bank bills.

Australian companies are keen to source debt locally to avoid expensive foreign exchange costs and are looking to develop lending relationships with the large superannuation funds.

In the 1980s, when the sharp rises in foreign debt and its servicing costs were occurring, the Australian economic debate was, not surprisingly, pre-occupied with these issues.

I think it is true to say that there has not been a lot of unhedged foreign currency borrowing occurring among Australian corporates since the days of the «Swiss franc loans» of the mid-eighties, but I will postpone discussion of that topic until I deal with foreign debt in the second half of this talk.

It, and the foreign currency debt servicing payments, are therefore subject to valuation effects when the exchange rate changes; currency depreciation increases the debt - servicing costs in Australian dollar terms.

The increase in the NID in the second half of 2004 was driven by an increase in income accruing to foreigners on their debt and equity investments in Australia, while returns received on Australian holdings of foreign assets remained broadly unchanged (Graph C2).

Interest payments to foreign holders of Australian debt rose broadly in line with growth in the stock of debt, while payments on foreign holdings of Australian equity rose sharply (see Box C for a more detailed discussion of Australia's net income deficit).

While falling world interest rates have reduced the servicing cost of foreign debt over the past two years, this has been offset by rising dividend payments on foreign holdings of Australian equity, reflecting the strong profit growth of Australian companies throughout this period.

If you are an Australian resident and you (or any associate entities) have certain international dealings, overseas interests, or if you are a foreign resident, the thin capitalisation rules may apply if your debt deductions, such as interest (combined with those of your associate entities) for 2015 — 16 are more than $ 2,000,000.