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Turkish private sector’s foreign loan debt decreased by $158 million

The total loan debt of the private sector from abroad decreased by $158 million in January compared to the previous month and became $159.7 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 January 2023.

Accordingly, the total loan debt of the private sector from abroad in January decreased by $158 million compared to the end of 2022 and decreased to $159.7 billion. In this period, the private sector’s long-term loan debt from abroad decreased by $284 million to $151.1 billion, while short-term loan debt (excluding commercial loans) increased by $126 million to $8.6 billion.

Banks’ borrowings in the form of long-term loans decreased by $610 million in January compared to the end of 2022, while their debt issuances decreased by $672 million to $13.3 billion.

In the same period, non-bank financial institutions’ borrowings in the form of loans increased by $51 million, while the bond stock decreased by $467 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 increased by $14 million to $9.4 billion.

Banks’ borrowings in the form of short-term loans decreased by $172 million in January compared to the end of 2022, to $4.9 billion, and non-financial institutions’ borrowings in the form of loans decreased by $28 million to $1.2 billion.

Principal repayment in one year was $40.5 billion

When the distribution of long-term loan debt by creditor is analyzed, debts to private creditors excluding bonds increased by $555 million in January compared to the end of 2022 and amounted to $104.5 billion. In the same period, short-term debt to private creditors, excluding bonds, increased by $3 million to $7.9 billion.

60.9% of the long-term loan debt was in dollars, 35.1% in euros, 1.8% in Turkish lira and 2.2% in other currencies. On the other hand, 36.8% of the short-term loan debt was realized in dollars, 36.4% in euros, 21.9% in Turkish lira and 4.9% in other currencies.

On the other hand, 34.3% of the total long-term loan debt was realized by financial institutions and 65.7% by non-financial institutions. Financial institutions accounted for 75.3% of the total short-term loan debt and non-financial corporations for 24.7%.

When the total loan debt obtained by the private sector from abroad is analyzed according to the remaining maturity as of the end of January, it was calculated that the principal repayments to be made within 1 year totaled $40.5 billion.

Source: Trthaber / Prepared by Irem Yildiz

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