Turkey’s central government debt edges down in August

By bne IntelliNews September 21, 2016

Turkey’s central government gross debt stock edged down 0.2% m/m to TRY711bn (€214bn) as of the end of August, the country’s Treasury said on September 20. Debt stock was TRY678bn at the end of last year.

The main concern, however, is not the rising public debt but the fast expansion of the private sector's external debt. Leverage in the corporate sector has risen rapidly especially after the global financial crisis as the world’s major central banks pumped billions of US dollars into the system, making it easier for Turkish banks and firms to reach low-cost foreign funding.

The Treasury also said that domestic debt stock rose by 0.7% m/m to TRY458bn at the end of August, while external debt stock decreased by 1.7% m/m to TRY253bn.

Fitch Ratings announced on August 19 that it has affirmed Turkey's long-term foreign and local currency issuer default ratings (IDR) at 'BBB-', the lowest investment grade, but it downgraded the outlook to negative from stable.

Prolonged or deepened political instability, insecurity or geopolitical stresses that undermine economic performance or economic policy credibility; a materialisation of stresses stemming from external financing vulnerabilities, a reversal in the declining trend in debt to GDP ratio or a worsening of external imbalances could individually or collectively trigger a rating downgrade, Fitch warned.

Turkish Central Government Debt Stock
($ mn) Domestic Foreign Total
Jan  416,933      204,559      621,493    
Feb  421,204      211,547      632,751    
Mar  423,184      210,666      633,850    
Apr  428,485      219,649      648,134    
May  429,378      218,061      647,439    
Jun  430,236      221,911      652,147    
Jul  434,383      227,897      662,279    
Aug  434,981      241,715      676,696    
Sep  438,175      252,522      690,696    
Oct  438,204      239,957      678,161    
Nov  439,458      237,367      676,825    
Dec-15  440,124      237,565      677,689    
Jan-16  443,078      241,707      684,785    
Feb  444,085      241,146      685,231    
Mar  448,233      235,593      683,826    
Apr  449,407      233,668      683,075    
May  452,286      248,505      700,791    
Jun  453,269      247,035      700,303    
Jul  455,309      256,829      712,138    
Aug  458,414      252,533      710,948    
source: treasury

Related Articles

Ukrainian court orders PrivatBank to service bailed-in British deposits

A court in Kyiv has ruled that the nationalised PrivatBank should accrue and pay interest under agreements with six British companies that had demanded the lender and its subsidiaries should ... more

Mongolia completes $5.5bn IMF bailout deal after 2016 slump in growth

Mongolia has reached a $5.5bn bailout agreement with the International Monetary Fund (IMF), the Fund said in a statement on February 19. The deal has been ... more

Poland's real interest rates turn negative as inflation surges in January

Poland's consumer price index grew 1.8% y/y in January, more than doubling its rate compared to December, statistics office GUS announced on February 13. With Polish interest rates sitting at ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss