Private Sector's Total Foreign Debt Continues to Rise
As of the end of September, the total credit debt of the private sector sourced from abroad increased by $14.3 billion compared to the end of 2023, reaching $178.5 billion.
According to a statement from the Central Bank of the Republic of Turkey (CBRT), when examined by maturity, the long-term credit debt increased by $10.2 billion to reach $165.2 billion, and the short-term credit debt, excluding commercial loans, increased by $4.1 billion to $13.3 billion.
The statement noted: "When looking at the distribution by debtor, it was observed that for long-term credit debt, bank borrowings in the form of loans increased by $1.7 billion compared to the end of the previous year, while borrowings in the form of bond issuances also increased by $3.6 billion to reach $18.4 billion. During the same period, borrowings in the form of loans by non-banking financial institutions decreased by $188 million, and the bond stock decreased by $52 million to $1.1 billion. It was noted that borrowings in the form of loans by non-financial corporations increased by $2.2 billion, while the bond stock increased by $2.2 billion to $12.9 billion. Regarding short-term credit debt, bank borrowings in the form of loans increased by $2.8 billion to reach $7.3 billion, while borrowings in the form of loans by non-financial corporations decreased by $479 million to $1.1 billion.
When examining the distribution by creditor, it was observed that as of the end of September, the debt to private creditors, excluding bonds, related to long-term credit debt increased by $5.1 billion compared to the end of the previous year, reaching $111.9 billion. For short-term credit debt, the debt to private creditors, excluding bonds, increased by $3.5 billion compared to the end of the previous year, reaching $11.4 billion.
Looking at the currency composition, it can be seen that of the $165.2 billion in long-term credit debt, 57.6% is in US dollars, 35.0% in Euros, 2.5% in Turkish lira, and 4.9% in other currencies. For the $13.3 billion in short-term credit debt, 43.8% is in US dollars, 15.9% in Euros, 35.3% in Turkish lira, and 5.0% in other currencies.
Examining the sector distribution, it was found that as of the end of September, financial institutions accounted for 37.6% and non-financial institutions accounted for 62.4% of the total long-term credit debt amounting to $165.2 billion. In the same period, financial institutions made up 78.5% and non-financial institutions made up 21.5% of the total short-term credit debt of $13.3 billion.
When evaluating the remaining maturity of the total credit debt sourced by the private sector from abroad as of the end of September, it was observed that the total principal repayments to be made within one year amount to $54.3 billion."