The Turkish Central Bank (TCMB) has reported the private sector’s outstanding short-term and long-term foreign debt as of August 2020. Short-term debt was USD 8.4 billion, USD 0.3 billion (3.8%) lower than the figure for 2019 yearend. Long-term debt was USD 162.2 billion, USD 16.9 billion (9.4%) lower than the figure for 2019 yearend. Total private sector foreign debt amounts to USD 170.6 billion as of the end of August 2020, which is USD 17.2 billion (9.2%) lower than the total debt for 2019 yearend.
Of the USD 170.6 billion total foreign debt owed by the private sector as of August 2020, 61.1% is denominated in US dollars and 34.4% in euros, 45.6 is owed by financial companies and 54.4% 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 – August 2020
As regards the private sector’s outstanding loans received from abroad, long-term loans recorded USD 162.2 billion as of August, decreasing by USD 16.9 billion; whereas short-term loans (excluding trade credits) realized USD 8.4 billion, decreasing by USD 333 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 20.6 billion, decreasing by USD 592 million in comparison to the end of 2019. In the same period, non-bank financial institutions’ loan liabilities decreased by USD 1.8 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 9.3 billion in comparison to the end of 2019; while bond liabilities amounted to USD 6.5 billion, decreasing by USD 696 million as of August. Regarding short-term loans, banks’ loan liabilities realized as USD 6.1 billion, increasing by USD 458 million; whereas non-financial institutions’ loan liabilities realized as USD 1.2 billion, decreasing by USD 345 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 110.2 billion, decreasing by USD 15.3 billion compared to the end of the previous year. Regarding short-term loans, liabilities to private creditors excluding bonds amounted to USD 8.0 billion decreasing by USD 417 million compared to the end of the previous year.
Regarding the currency composition, of the total long-term loans in the amount of USD 162.2 billion, 62.0 percent consists of USD, 34.2 percent consists of Euro, 2.2 percent consists of Turkish lira and 1.6 percent consists of other currencies and of the total short-term loans in the amount of USD 8.4 billion, 42.8 percent consists of USD, 38.7 percent consists of Euro, 16.1 percent consists of Turkish lira and 2.4 percent consist of other currencies.
As for the sectoral breakdown by the end of August, of the total long-term loans in the amount of USD 162.2 billion, 43.6 percent consists of liabilities of the financial institutions; whereas 56.4 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 8.4 billion, 83.2 percent consists of liabilities of the financial institutions. whereas 16.8 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 August.”