The amount that Canadians owe to foreigners fell to its lowest level in about 20 years during the second quarter, Statistics Canada said today.

“Canada’s net external liabilities – the difference between its external assets and foreign liabilities – declined $10.5 billion to $175.9 billion at the end of June,” the agency said Wednesday. “As a result, net external liabilities at the end of June represented 13.7% of Canada’s gross domestic product, down a full point from 14.8% at the end of March- – a ratio that has steadily decreased from a peak of 44.3% in 1994.

“The value of international assets rose by 6.4% from the first quarter to $993.1 billion,” the agency said. “Canadian direct investment abroad, which increased $36.3 billion, was the major contributor to this advance.”

On the liability side, increases in foreign holdings of Canadian stocks and in bank deposits led to a 4.4% gain in international liabilities, which reached $1,169 billion at the end of June.

Canadian direct investment assets abroad reached $447.4 billion at the end of June, up 8.8% or $36.3 billion from the end of March.

Direct investment in the United States rose by $30.9 billion to $200.3 billion and now represents almost 45% of total Canadian direct investment abroad.

Holdings of foreign bonds rose by 7.8% to a record high value of $51.4 billion in the second quarter.

Holdings of foreign stocks reached $193.1 billion at the end of June, a modest increase of $2.2 billion compared with the end of March.

Foreign holdings of Canadian stocks jumped $18.5 billion to $104.7 billion at the end of June.

Foreign holdings of Canadian bonds reached $412.6 billion at the end of June, up $6.0 billion from the end of March.

Foreign oldings of Canadian money market paper increased by more than 10% to $20.6 billion.