Türkiye’s private sector’s foreign debt stands at USD178.5B in September

(MENAFN) As of September, the Turkish private sector’s foreign debt stood at USD178.5 billion, reflecting an increase of USD14.3 billion compared to the end of 2023, according to Türkiye’s Central Bank. This rise in debt was driven by both long-term and short-term loans. Long-term loans grew by USD1.7 billion, reaching USD165.2 billion, while short-term loans (excluding trade credits) saw a more significant rise, increasing by USD4.1 billion to total USD13.3 billion.

In terms of the currency composition of the private sector’s foreign debt, the US dollar dominated, comprising 57.6 percent of the long-term debt, followed by the euro at 35 percent. The Turkish lira accounted for 2.5 percent of the long-term debt, and other currencies made up 4.9 percent. For short-term debt, the US dollar also held the largest share, making up 43.8 percent, while the euro represented 15.9 percent, the Turkish lira 35.3 percent, and other currencies 5 percent.

The Central Bank also highlighted that, based on the remaining maturity of loans, the private sector is expected to make principal repayments amounting to USD54.3 billion over the next 12 months by the end of September. This indicates the substantial burden of short- and long-term debt repayment facing the Turkish private sector in the near future.

These figures reflect the ongoing reliance of Turkey’s private sector on foreign debt, with significant obligations in foreign currencies, particularly the US dollar and euro. The increase in both long-term and short-term debt underscores the growing need for financing, potentially raising concerns about the ability to manage repayments, especially given the upcoming substantial principal repayments.