Private Sector Reveals Foreign Loan Debt – Breaking News
The total loan debt of the private sector from abroad has increased by 4.8 billion dollars compared to the end of 2022, reaching 163.6 billion dollars, according to the Central Bank of the Republic of Turkey (CBRT).
The analysis of the debt by maturity shows that long-term loan debt increased by 3.5 billion dollars, reaching 154.2 billion dollars, while short-term loan debt (excluding commercial loans) increased by 1.3 billion dollars, reaching 9.4 billion dollars.
The distribution by borrower reveals that banks’ borrowings in the form of loans increased by 3.2 billion dollars, while their borrowings in the form of bond issues increased by 1.2 billion dollars. Non-banking financial institutions saw no significant change in their borrowings, while non-financial institutions experienced a decrease in the form of loans but an increase in bond stock. Regarding short-term loan debt, banks’ borrowings in the form of loans decreased, while the borrowings of non-financial institutions in the form of loans increased.
In terms of the creditor, the debt to private creditors, excluding bonds, increased compared to the end of the previous year for both long-term and short-term loan debt.
The foreign currency composition shows that a majority of the long-term loan debt consists of dollars, followed by euros, Turkish lira, and other currencies. The short-term loan debt is predominantly in dollars, followed by euros, Turkish lira, and other currencies.
When examining the sector distribution, the majority of the total long-term loan debt was made up of non-financial institutions, while the majority of the short-term loan debt was made up of financial institutions.
The total principal repayments to be made within 1 year amount to 51.6 billion dollars.
These developments in the private sector’s credit debt from abroad highlight the reliance on foreign borrowing by Turkish entities and will be important to monitor in the coming months.
