Turkey’s short-term external debt stock rises slightly to $130.7bn at end-September

By bne IntelliNews November 19, 2014

Turkey’s short-term external debt stock edged up to $130.7bn at end-Q3 from $130.6bn at end-Q2, the Central Bank said on November 19. The level of short-term debt stock as of Q3 represents a 1.1% increase compared to end-2013 when the stock was $129.3bn. The short-term external debt stock stood at $124.7bn at end-Q1.

Public sector’s short-term debt, which wholly composed of public banks, rose slightly to $18.9bn at end-Q3 from $18.2bn at end-Q2 while private sector’s short-term debt stock declined to $111.4bn at end-Q3 from $111.8bn at end-Q2. The private sector’s debt stock rose by 0.4% compared to end-2013.

Short-term FX loans of the banks received from abroad rose by 8% compared to end-2013, reaching $46.5bn at end-September, while banks’ short-term external debt stock rose by 3.2% since end-2013 to $94bn. Other sectors' short-term external debt stock fell by 3% to $36.3bn at end-Q3 compared to $37.5bn at end-2013.

Short-term external debt stock on a remaining maturity basis -based on the external debt maturing within one year or less regardless of the original maturity- was calculated at $166.3bn at the end of September, with public sector accounting for 14.7%, and private sector accounting for 84.4% in total stock, the Central Bank said.

In September, Fitch commented that weaker emerging market sovereigns would be most exposed to a highly negative interest rate 'shock' scenario where US interest rates rise more rapidly and higher than Fitch’s base case, in which global growth and financial markets are not fundamentally destabilized by a tightening of US monetary policy. The most exposed would be weaker emerging markets such as those with large external financing needs, low foreign reserves, high levels of leverage, vulnerable debt structures, weak policy frameworks or political fragilities, and countries with these characteristics include Mongolia, Turkey, Ukraine, El Salvador, Hungary, Lebanon and Jamaica, Fitch said.



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