NEWS Finance        16/12/2020

Turkey’s private sector foreign debt is USD 169 billion as of October 2020

The Turkish Central Bank (TCMB) has reported the private sector’s outstanding short-term as USD 7.8 billion and long-term foreign debt as USD 161.2 billion , with the total private sector foreign debt amounting to USD 169 billion as of the end of October 2020. The October total figure is USD 18.9 billion (10.1%) lower than the total debt for 2019 yearend. 

 

Of the USD 169 billion total foreign debt owed by the private sector as of October 2020, 61.3% is denominated in US dollars and 34% in euros, 45.3% is owed by financial companies and 54.7% is owed by non-financial companies, and a total of USD 40.7 billion is to be repaid within one year.

 

The Turkish Central Bank’s review summary is as follows :

 

“Developments in Private Sector's Outstanding Loans Received From Abroad – October 2020     

 

As regards the private sector’s outstanding loans received from abroad, long-term loans recorded USD 161.2 billion as of October, decreasing by USD 18.1 billion; whereas short-term loans (excluding trade credits) realized USD 7.9 billion, decreasing by USD 845 million in comparison to the end of 2019.

 

From the borrower’s side, regarding long-term loans, banks’ loan liabilities decreased by USD 2.8 billion; whereas bond liabilities amounted to USD 20.6 billion, decreasing by USD 674 million in comparison to the end of 2019. In the same period, non-bank financial institutions’ loan liabilities decreased by USD 2.2 billion; whereas bond liabilities amounted to USD 2.5 billion, decreasing by USD 1.1 billion. Non-financial institutions’ loan liabilities recorded a decrease of USD 10.2 billion in comparison to the end of 2019; while bond liabilities amounted to USD 7.1 billion, decreasing by USD 49 million as of October. Regarding short-term loans, banks’ loan liabilities realized as USD 5.5 billion, decreasing by USD 104 million; whereas non-financial institutions’ loan liabilities realized as USD 1.2 billion, decreasing by USD 415 million in comparison to the end of 2019.

 

From the creditor’s side, regarding long-term loans, liabilities to private creditors excluding bonds amounted to USD 109.5 billion, decreasing by USD 16.1 billion compared to the end of the previous year. Regarding short-term loans, liabilities to private creditors excluding bonds amounted to USD 7.5 billion decreasing by USD 950 million compared to the end of the previous year.

 

Regarding the currency composition, of the total long-term loans in the amount of USD 161.2 billion, 62.4 percent consists of USD, 33.8 percent consists of Euro, 2.1 percent consists of Turkish lira and 1.7 percent consists of other currencies and of the total short-term loans in the amount of USD 7.9 billion, 40.4 percent consists of USD, 39.0 percent consists of Euro, 17.4 percent consists of Turkish lira and 3.2 percent consist of other currencies.

 

As for the sectoral breakdown by the end of October, of the total long-term loans in the amount of USD 161.2 billion, 43.5 percent consists of liabilities of the financial institutions; whereas 56.5 percent consists of the liabilities of the non-financial institutions. In the same period, of the total short-term loans in the amount of USD 7.9 billion, 83.7 percent consists of liabilities of the financial institutions. whereas 16.3 percent consists of liabilities of the non-financial institutions.

 

Private sector’s total outstanding loans received from abroad based on a remaining maturity basis; point out to principal repayments in the amount of USD 40.7 billion for the next 12 months by the end of October.”

 



Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 16.19% in March 2021       Turkey’s official unemployment rate jumps to 13.4% in February 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020