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Turkiye: Private sector’s foreign loan debt decreased by $7.5 billion in October

The total loan debt of the private sector from abroad decreased by $7.5 billion in October compared to the end of 2021 and became $160.9 billion.

The Central Bank of the Republic of Turkiye (CBRT) published the developments in the loan debt of the private sector from abroad for the period of October 2022.

Accordingly, in October, the total loan debt of the private sector from abroad decreased by $7.5 billion compared to the end of 2021 and decreased to $160.9 billion. In this period, the private sector’s long-term loan debt from abroad decreased by $8.3 billion to $152.7 billion, while short-term loan debt (excluding commercial loans) increased by $779 million to $8.2 billion.

Banks’ borrowings in the form of long-term loans decreased by $4.2 billion in October compared to the end of 2021, while borrowings from bond issues decreased by $5.1 billion to $14.9 billion.

In the same period, non-bank financial institutions’ borrowings in the form of loans decreased by $147 million, while the bond stock increased by $42 million to $1.9 billion. During this period, non-financial corporations’ borrowings in the form of loans increased by $1.3 billion, while the stock of bonds rose by $180 million to $10.2 billion.

Banks’ borrowings in the form of short-term loans increased by $501 million in October from the end of 2021 to $5.2 billion, while non-financial institutions’ borrowings in the form of loans increased by $628 million to $1.5 billion.

Principal repayment in one year is $40.4 billion

When the distribution of long-term loan debt by creditor is analyzed, debts to private creditors excluding bonds decreased by $1.2 billion in October compared to the end of 2021, to $105.8 billion. In the same period, short-term debt to private creditors, excluding bonds, increased by $899 million to $8 billion.

64.8% of the long-term loan debt was in dollars, 31.8% in euros, 1.7% in Turkish lira and 1.7% in other currencies. On the other hand, 41.6% of short-term loan debt was realized in dollars, 38% in euros, 18.4% in Turkish lira and 2% in other currencies.

On the other hand, 36% of the total long-term loan debt was realized by financial institutions and 64% by non-financial institutions. 76.2% of the total short-term loan debt consisted of financial institutions and 23.8% of non-financial institutions’ debts.

When the total loan debt of the private sector from abroad is analyzed according to the remaining maturity as of the end of October, it was calculated that the principal repayments to be made within 1 year totaled $40.4 billion.

Source: Trthaber / Translated by Irem Yildiz

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