Turkey’s public net debt stock rose by 17% y/y and 4% q/q to TRY272bn (€51bn) as of the end of March, the highest level registered since Q2 2012, the Treasury said on June 29.

The figure moved up by 20% y/y to TRY262bn at the end of 2017.

The public net debt stock remained unchanged at 8.4% of GDP at end-March compared to the end of 2017.

The gross public debt stock rose by 16% y/y to TRY993bn at the end of March, including TRY382bn or 38% of external debt.

Gross public debt grew 16% y/y to TRY955bn at the end of 2017.

The EU-defined general government debt stock rose by 18% y/y and 5% q/q to reach TRY922bn at the end of March. That parameter rose by 19% y/y to TRY878bn at the end of 2017.

The EU-defined debt stock to GDP ratio slightly edged up from 28.3% at the end of 2017 to 28.4% the end of March.

On June 1, Moody’s placed Turkey's Ba2 long-term issuer ratings on review for a downgrade due to mounting uncertainty over the future direction of macroeconomic policy in the context of the country's vulnerable external position.

Turkey’s credit rating was cut deeper into junk by S&P Global Ratings on May 1 as the rating agency responded to the risk of its overheating economy experiencing a hard landing. In late January last year, Fitch stripped Turkey of its last investment grade rating.

On 7 March, Moody's downgraded Turkey's ratings by one notch to Ba2 from Ba1. In doing so, the rating agency stated that Turkey's sovereign rating would likely be downgraded further if there was a material increase in the probability and proximity of severe pressures on the country's balance of payments, relative to what is implied by the Ba2 rating.