The Turkish Central Bank (TCMB) has reported the private sector’s outstanding short-term as USD 8.9 billion and long-term foreign debt as USD 161 billion, with the total private sector foreign debt amounting to USD 169.9 billion as of the end of September 2020. The September total figure is USD 18.1 billion (9.6%) lower than the total debt for 2019 yearend.
Of the USD 169.9 billion total foreign debt owed by the private sector as of September 2020, 61.5% is denominated in US dollars and 33.8% in euros, 46% is owed by financial companies and 54% is owed by non-financial companies, and a total of USD 42.3 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 – September 2020
As regards the private sector’s outstanding loans received from abroad, long-term loans recorded USD 161.0 billion as of September, decreasing by USD 18.2 billion; whereas short-term loans (excluding trade credits) realized USD 8.9 billion, increasing by USD 179 million in comparison to the end of 2019.
From the borrower’s side, regarding long-term loans, banks’ loan liabilities decreased by USD 2.3 billion; whereas bond liabilities amounted to USD 20.6 billion, decreasing by USD 647 million in comparison to the end of 2019. In the same period, non-bank financial institutions’ loan liabilities decreased by USD 2.1 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 10.3 billion in comparison to the end of 2019; while bond liabilities amounted to USD 6.5 billion, decreasing by USD 703 million as of September. Regarding short-term loans, banks’ loan liabilities realized as USD 6.5 billion, increasing by USD 865 million; whereas non-financial institutions’ loan liabilities realized as USD 1.2 billion, decreasing by USD 353 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 109.8 billion, decreasing by USD 15.7 billion compared to the end of the previous year. Regarding short-term loans, liabilities to private creditors excluding bonds amounted to USD 8.5 billion increasing by USD 26 million compared to the end of the previous year.
Regarding the currency composition, of the total long-term loans in the amount of USD 161.0 billion, 62.5 percent consists of USD, 33.7 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 8.9 billion, 43.3 percent consists of USD, 37.4 percent consists of Euro, 16.1 percent consists of Turkish lira and 3.2 percent consist of other currencies.
As for the sectoral breakdown by the end of September, of the total long-term loans in the amount of USD 161.0 billion, 43.8 percent consists of liabilities of the financial institutions; whereas 56.2 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 8.9 billion, 84.8 percent consists of liabilities of the financial institutions. whereas 15.2 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 42.3 billion for the next 12 months by the end of September.”