The Turkish Central Bank (TCMB) has reported the private sector’s outstanding short-term and long-term foreign debt as of the end of December 2019. Short-term debt was USD 9.5 billion, USD 5.8 billion (38.2%) lower than the figure for 2018 yearend. Long-term debt was USD 191.4 billion, USD 17.2 billion (8.3%) lower than the figure for 2018 yearend. Total private sector foreign debt amounts to USD 200.9 billion as of the end of December 2019, which is USD 23.1 billion (10.3%) lower than the total debt for 2018 yearend.
Of the USD 200.9 billion total foreign debt owed by the private sector as of December 2019, 60.4% is denominated in US dollars and 33.4% in euros, 47.7% is owed by financial companies and 52.3% is owed by non-financial companies, and a total of USD 50.7 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 - December 2019
As regards the private sector’s outstanding loans received from abroad, long-term loans recorded USD 191.5 billion as of December, decreasing by USD 17.2 billion; whereas short-term loans (excluding trade credits) realized USD 9.5 billion, decreasing by USD 5.8 billion in comparison to the end of 2018.
From the borrower’s side, regarding long-term loans, banks’ loan liabilities decreased by USD 8.6 billion; whereas bond liabilities amounted to USD 27.2 billion, decreasing by USD 1.3 billion in comparison to the end of 2018. In the same period, non-bank financial institutions’ loan liabilities decreased by USD 3.5 billion; whereas bond liabilities amounted to USD 3.7 billion, decreasing by USD 557 million. Non-financial institutions’ loan liabilities recorded a decrease of USD 2.9 billion in comparison to the end of 2018; while bond liabilities amounted to USD 7.5 billion, increasing by USD 1.1 billion as of December. Regarding short-term loans, banks’ loan liabilities realized as USD 6.2 billion, decreasing by USD 3.2 billion; whereas non-financial institutions’ loan liabilities realized as USD 1.7 billion, decreasing by USD 1.6 billion in comparison to the end of 2018.
From the creditor’s side, regarding long-term loans, liabilities to private creditors excluding bonds amounted to USD 127.6 billion, decreasing by USD 17.2 billion compared to the end of the previous year. Regarding short-term loans, liabilities to private creditors excluding bonds amounted to USD 9.0 billion decreasing by USD 5.8 billion compared to the end of the previous year.
Regarding the currency composition, of the total long-term loans in the amount of USD 191.5 billion. 61.2 percent consists of USD, 33.4 percent consists of Euro, 3.8 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 9.5 billion, 45.2 percent consists of USD, 32.2 percent consists of Euro, 22.1 percent consists of Turkish lira and 0.5 percent consist of other currencies.
As for the sectoral breakdown by the end of December, of the total long-term loans in the amount of USD 191.5 billion, 46.2 percent consists of liabilities of the financial institutions; whereas 53.8 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 9.5 billion, 78.8 percent consists of liabilities of the financial institutions. whereas 21.2 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 50.7 billion for the next 12 months by the end of December.”