Turkish private companies’ long-term external debt rises to $178.2bn at end-July

By bne IntelliNews September 14, 2015

Turkish private sector’s long-term foreign debt rose from $177.2bn at end-Q2 to $178.2bn at end-July, data of the Central Bank showed on September 14. The debt stood at $167.85bn at the end of 2014.

Turkey is still heavily dependent on external borrowing due to its chronic current account deficit problem while private sector’s share in total external borrowing have been increasing in the recent years. Current global conjuncture under the threat of FED’s expected policy shift, depreciation of local currency and political uncertainties impose risks on Turkish private sector’s foreign borrowing ability although significant problems have not been felt yet or are expected in the short term at least. Fitch said on September 11 in a note named ‘Turkish banks’ external debt continues to increase’ that Turkish banks still has the largest share in foreign borrowing, and as a result still vulnerable to exchange rate fluctuations.

Financial institutions’ long-term debt increased from $94.8bn at end-Q2 to $95.9bn at end-July, according to data from the central bank. Regarding the currency composition of the total of $178.2bn debt, 61.8% consists of USD and 31.5% consists of Euro, detailed the central bank.

Data also showed that Turkish private sector’s short-term foreign debt declined from $33.8bn at the end of the second quarter to $33.1bn at end-July.

Turkish Private Sector's External Debt ($ bn)
  2010 2011 2012 2013 2014 2015-Q1 2015-Q2 2015-7
Long-term 120.0 127.0 139.8 156.0 167.8 166.5 177.2 178.2
       Financial 41.3 48.1 57.1 73.1 85.0 87.1 94.8 95.9
                     Banks 28.7 34.9 41.8 54.9 66.0 68.8 75.5 76.6
                               Loans 27.7 31.6 31.3 38.8 44.4 46.0 52.5 54.4
       Non-Financial 78.7 78.9 82.7 82.9 82.8 79.4 82.4 82.4
Short-term 19.0 24.9 30.6 41.4 44.4 39.8 33.8 33.1
       Financial 18.0 23.5 28.1 38.8 41.6 37.2 31.2 30.5
                     Banks 17.0 22.2 26.3 36.4 39.6 35.1 29.0 28.1
                             Loans 17.0 22.2 26.2 35.0 35.7 31.6 25.4 24.6
       Non-Financial 1.0 1.4 2.5 2.6 2.8 2.6 2.6 2.6
source: tcmb

Related Articles

Turkey offers citizenship to wealthy foreigners who buy property and invest

Turkey has made changes to its citizenship laws to lure more foreign capital and investment, local media reported on January 12. The government will grant citizenship to foreigners who buy ... more

Turkish lira’s free fall continues as economic and political worries weigh on sentiment

The collapse in the value of the Turkish lira accelerated on January 9 with the currency tumbling 2.3% against the dollar and finishing at an all-time low against the greenback by the end of the ... more

EU wants to deepen trade relations with Turkey

The European Commission has asked the European Council for a mandate to launch talks to update the bloc's 20-year-old customs union with Turkey, the EU's executive said on December 21. The ... 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