NEWS Finance        19/08/2020

Turkey’s private sector foreign debt is USD 170.1 billion as of June 2020

The Turkish Central Bank (TCMB) has reported the private sector’s outstanding short-term and long-term foreign debt as of June 2020. Short-term debt was USD 8.5 billion, USD 0.5 billion (5.6%) lower than the figure for 2019 yearend. Long-term debt was USD 161.6 billion, USD 17.9 billion (10%) lower than the figure for 2019 yearend. Total private sector foreign debt amounts to USD 170.1 billion as of the end of June 2020, which is USD 18.4 billion (9.8%) lower than the total debt for 2019 yearend. 

 

Of the USD 170.1 billion total foreign debt owed by the private sector as of June 2020, 62% is denominated in US dollars and 33.6% in euros, 45.8 is owed by financial companies and 54.2% is owed by non-financial companies, and a total of USD 42.1 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 – June 2020     

 

As regards the private sector’s outstanding loans received from abroad, long-term loans recorded USD 161.6 billion as of June, decreasing by USD 17.9 billion; whereas short-term loans (excluding trade credits) realized USD 8.5 billion, decreasing by USD 509 million in comparison to the end of 2019.

 

From the borrower’s side, regarding long-term loans, banks’ loan liabilities decreased by USD 2.5 billion; whereas bond liabilities amounted to USD 20.1 billion, decreasing by USD 1.1 billion in comparison to the end of 2019. In the same period, non-bank financial institutions’ loan liabilities decreased by USD 1.6 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 7.0 billion, decreasing by USD 634 million as of June. Regarding short-term loans, banks’ loan liabilities realized as USD 5.8 billion, increasing by USD 80 million; whereas non-financial institutions’ loan liabilities realized as USD 1.5 billion, decreasing by USD 256 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 110.9 billion, decreasing by USD 15.1 billion compared to the end of the previous year. Regarding short-term loans, liabilities to private creditors excluding bonds amounted to USD 8.2 billion decreasing by USD 527 million compared to the end of the previous year.

 

Regarding the currency composition, of the total long-term loans in the amount of USD 161.6 billion, 63.4 percent consists of USD, 33.2 percent consists of Euro, 2.7 percent consists of Turkish lira and 0.7 percent consists of other currencies and of the total short-term loans in the amount of USD 8.5 billion, 35.3 percent consists of USD, 41.0 percent consists of Euro, 22.3 percent consists of Turkish lira and 1.4 percent consist of other currencies.

 

As for the sectoral breakdown by the end of June, of the total long-term loans in the amount of USD 161.6 billion, 44.0 percent consists of liabilities of the financial institutions; whereas 56.0 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 8.5 billion, 79.8 percent consists of liabilities of the financial institutions. whereas 20.2 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 42.1 billion for the next 12 months by the end of June.”

 

 



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