UK with top exposure to Turkish private sector foreign loans

UK with top exposure to Turkish private sector foreign loans
By Akin Nazli in Belgrade August 15, 2018

Turkey’s private sector long-term foreign loans contracted by 2% q/q to stand at $222bn as of end-June, the central bank said on August 15.

At a combined $111bn, European countries had the largest exposure to Turkish private companies’ outstanding long-term foreign credits. They were led by the UK with $30bn and second-placed Germany with $22bn.

Turkey, enduring a torrid currency crisis, was at the beginning of this week described by many analysts as being days away from entering a debt and liquidity crisis, but a recovery in the value of the Turkish lira (TRY) is under way, thus leading some observers to revise their predictions.

The fresh statistics listed the US as having the third largest exposure to the outstanding long-term loans, at $20bn. It was followed by the Netherlands with $14bn and Bahrain with $11bn (full table published on IntelliNews Pro).

Of lenders, the European Bank of Reconstruction and Development (EBRD) had the largest share, at $10bn. Next were the European Investment Bank with $5bn, the World Bank Group’s International Finance Corporation with $3bn, the International Bank of Reconstruction and Development with $2bn, the Islamic Development Bank with $397mn and the Council of Europe Development Bank with $290mn.

The data also showed Turkish banks’ outstanding long-term loans declined by 2% q/q to $94bn at end-Q2, with $31bn of that made up of bonds.

Non-financial private companies’ total outstanding loans edged down 1% y/y to $111bn at end-June, including $91bn worth of bank loans, $12bn worth of loans from parent companies or affiliates, $442mn in trade credits and $8bn in bonds.

Private creditors provided $154bn of the total of $222bn of outstanding loan stock, while $91bn came from non-resident commercial banks and $31bn was sourced from foreign branches or affiliates of local banks.

Data from the central bank also showed that the private sector's short-term loans volume rose by 1% q/q to $19bn as of end-June, including $13bn worth of loans received by Turkish lenders.

The International Finance Corporation has the largest exposure when it comes to the Turkish private sector’s outstanding short-term loans, at $372mn.

The UK also topped the list of countries with the highest exposure to the Turkish private sector’s short-term loans, at $3.99bn. It was followed by the Netherlands with $3.27bn. European countries’ total exposure to the short-term loans stood at $15.5bn as of the end of June.

On a remaining maturity basis for the next one-year period, the Turkish private sector has to repay a total of $69.6bn for its loan debts, including $5.5bn in August and $6.89bn in September. The highest amounts to be paid are $8.92bn in October and $7.84bn in May 2019.

By the end of 2018, the Turkish private sector’s scheduled total loan debt repayments amount to $32.3bn.

Private sector long-term foreign debt moved up 9% y/y to stand at $222bn as of end-2017 from $202bn at end-2016, while the short-term debt rose by 28% y/y to $18bn as of end-2017 from $14bn a year previously.

Turkish Private Sector's Outstanding Long Term Foreign Loans by Country of Creditor
   
(USD) end-Q1 end-Q2
Total 226,960,855,606 221,715,080,471
     
EUROPE 114,792,228,886 110,731,471,056
ASIA 40,948,957,285 42,721,107,822
Holders of Bond Issues Abroad 44,032,189,361 41,927,672,514
United Kingdom 29,203,442,523 29,581,529,717
AMERICAS 26,842,856,840 26,084,516,484
Germany 23,590,786,062 22,102,713,946
United States of America 20,402,591,510 19,864,158,420
Netherlands 15,814,018,344 13,842,974,960
Bahrain 11,310,334,142 10,719,837,918
United Arab Emirates 7,064,169,000 9,762,380,263
Luxembourg 8,255,927,530 8,173,075,781
France 7,959,128,893 7,714,325,619
Austria 8,279,897,718 7,168,210,201
Japan 6,361,228,701 6,161,241,652
Cayman Islands 5,088,326,284 4,719,547,492
China 4,735,304,683 4,305,346,700
OTHER ASIAN COUNTRIES 3,978,327,752 4,007,164,382
Belgium 4,015,376,153 3,692,990,270
Italy 3,537,610,341 3,312,575,601
Malta 2,512,558,881 3,082,860,810
Switzerland 2,725,430,731 2,705,781,150
Azerbaijan 2,021,298,759 2,066,831,268
Ireland 2,017,591,959 1,865,343,327
Spain 1,852,898,174 1,825,176,494
South Korea 1,805,736,116 1,727,880,403
Kuwait 1,751,581,963 1,717,565,592
Russia 1,493,655,234 1,483,612,921
OTHER EUROPEAN COUNTRIES 1,590,910,556 1,445,599,816
Canada 1,180,317,109 1,330,637,731
Singapore 1,038,980,336 1,154,455,652
Denmark 199,459,916 1,038,083,073
Greece 939,829,704 918,495,850
Saudi Arabia 677,332,543 895,424,147
Sweden 573,709,121 540,093,293
AFRICA 303,890,980 209,624,282
OTHER AFRICAN COUNTRIES 294,514,965 200,251,585
Turkish Republic of Northern Cyprus 127,960,913 123,748,498
OTHER AMERICAN COUNTRIES 117,972,739 122,873,603
Hong Kong 115,942,474 114,259,028
Kazakhstan 88,720,817 88,720,817
Finland 49,243,602 63,963,541
Norway 52,669,401 50,200,507
Bahamas 53,019,071 46,671,138
OCEANIA AND POLAR REGIONS 40,732,254 40,688,312
Australia 21,594,537 22,708,526
OTHER OCEANIA AND POLAR REGIONS COUNTRIES 19,137,717 17,979,786
South Africa 9,376,015 9,372,698
Netherlands Antilles 630,128 628,100
Jersey 123,130 115,680
Outstanding Short Term Foreign Loans by Country of Creditor
   
  end-June  
TOTAL 19,067,726,018  
EUROPE 15,479,975,683  
United Kingdom (England, Wales, Scotland, Northern Ireland) 3,993,675,545  
Netherlands 3,265,166,735  
ASIA 2,491,940,281  
Germany 2,374,555,994  
Italy 2,307,397,041  
United Arab Emirates 985,105,301  
Belgium 944,119,772  
France 759,202,314  
OTHER (ASIA) 614,415,225  
AMERICAS 602,473,084  
United States of America 533,596,016  
Russia 508,261,147  
Switzerland 450,339,847  
AFRICA 349,510,423  
OTHER (AFRICA) 349,510,423  
China 335,496,265  
OTHER (EUROPE) 254,413,956  
Bahrain 230,406,678  
Ireland 196,733,755  
BONDS 138,106,195  
Austria 120,573,895  
Singapore 115,858,067  
Luxembourg 111,914,738  
Saudi Arabia 108,163,794  
Spain 90,235,371  
Kuwait 50,000,000  
Turkish Republic of Northern Cyprus 48,849,439  
Japan 48,576,830  
OTHER (AMERICAS) 31,618,524  
Finland 29,346,592  
Canada 18,925,939  
Bahamas 18,332,606  
Sweden 13,755,023  
Denmark 7,862,801  
OCEANIA VE POLAR REGIONS 5,720,350  
OTHER (OCEANIA VE POLAR REGIONS) 5,720,350  
Azerbaijan 3,000,000  
Norway 1,366,765  
Greece 1,208,706  
Malta 764,889  
Kazakhistan 536,465  
Hong Kong 298,291  
Jersey 231,360  
South Korea 83,365  
source: Turkish central bank    

 

 

 

 

News

Dismiss