NEWS Finance        23/03/2020

Turkey’s private sector foreign debt is USD 198.2 billion as of January 2020

The Turkish Central Bank (TCMB) has reported the private sector’s outstanding short-term and long-term foreign debt as of January 2020. Short-term debt was USD 8.4 billion, USD 1.1 billion (11.2%) lower than the figure for 2019 yearend. Long-term debt was USD 189.8 billion, USD 1.8 billion (0.9%) lower than the figure for 2019 yearend. Total private sector foreign debt amounts to USD 198.2 billion as of the end of January 2020, which is USD 2.9 billion (1.4%) lower than the total debt for 2019 yearend. 

 

Of the USD 198.2 billion total foreign debt owed by the private sector as of January 2020, 60.9% is denominated in US dollars and 32.9% in euros, 47.4% is owed by financial companies and 52.6% is owed by non-financial companies, and a total of USD 48.5 billion is to be repaid within one year.

 

The Turkish Central Bank’s review summary is as follows :

 

“Developments in Private Sector's Outstanding Loans Received From Abroad – January 2020     

 

As regards the private sector’s outstanding loans received from abroad, long-term loans recorded USD 189.8 billion as of January, decreasing by USD 1.8 billion; whereas short-term loans (excluding trade credits) realized USD 8.4 billion, decreasing by USD 1.1 billion in comparison to the end of 2019.

 

From the borrower’s side, regarding long-term loans, banks’ loan liabilities decreased by USD 850 million; whereas bond liabilities amounted to USD 27.4 billion, increasing by USD 210 million in comparison to the end of 2019. In the same period, non-bank financial institutions’ loan liabilities decreased by USD 308 million; whereas bond liabilities amounted to USD 3.7 billion, showing no significant change . Non-financial institutions’ loan liabilities recorded a decrease of USD 681 million in comparison to the end of 2019; while bond liabilities amounted to USD 7.5 billion, decreasing by USD 6 million as of January. Regarding short-term loans, banks’ loan liabilities realized as USD 5.4 billion, decreasing by USD 786 million; whereas non-financial institutions’ loan liabilities realized as USD 1.6 billion, decreasing by USD 101 million in comparison to the end of 2019.

 

From the creditor’s side, regarding long-term loans, liabilities to private creditors excluding bonds amounted to USD 125.9 billion, decreasing by USD 1.8 billion compared to the end of the previous year. Regarding short-term loans, liabilities to private creditors excluding bonds amounted to USD 8.0 billion decreasing by USD 1.0 billion compared to the end of the previous year.

 

Regarding the currency composition, of the total long-term loans in the amount of USD 189.8 billion. 61.7 percent consists of USD, 32.9 percent consists of Euro, 3.7 percent consists of Turkish lira and 1.7 percent consists of other currencies and of the total short-term loans in the amount of USD 8.4 billion, 44.9 percent consists of USD, 32.0 percent consists of Euro, 22.4 percent consists of Turkish lira and 0.7 percent consist of other currencies.

 

As for the sectoral breakdown by the end of January, of the total long-term loans in the amount of USD 189.8 billion, 46.1 percent consists of liabilities of the financial institutions; whereas 53.9 percent consists of the liabilities of the non-financial institutions. In the same period, of the total short-term loans in the amount of USD 8.4 billion, 77.9 percent consists of liabilities of the financial institutions. whereas 22.1 percent consists of liabilities of the non-financial institutions.

 

Private sector’s total outstanding loans received from abroad based on a remaining maturity basis; point out to principal repayments in the amount of USD 48.5 billion for the next 12 months by the end of January.”

 



Turkey’s net minimum wage has been raised 15.04% to TL 2,324.70 (USD 391) as of 01.01.2020       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate moves back down to 11.86% in March 2020       Turkey’s unemployment rate increases to 13.7% in December 2019       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,154,997 as of 2019 yearend       Foreigners visiting Turkey in 2019 increase by 14.1% to a record 45.1 million       Turkey’s private sector foreign debt is USD 200.9 billion as of 2019 yearend       Turkey’s economy grew by 0.9% in 2019