Turkish firms’ foreign debt hits record, surpassing $200 billion in April

ANKARA

Turkish companies have borrowed $162.6 billion in long-term credit from foreign creditors by the end of April, a rise of $6.3 billion since the end of 2013.

The total amount of loans the Turkish private sector received from abroad has surpassed $200 billion for the first time in Republican history, reaching $203 billion in April.

According to figures announced by the Central Bank on June 17, Turkish companies had borrowed $162.6 billion in long-term credit from foreign creditors by the end of April, a rise of $6.3 billion since the end of 2013, totaling $40.7 billion.

As of the end of April, short-term loans the private sector had received from abroad were $386 million for the first four months of the year.

Public borrowing has declined over the past few years under Justice and Development Party (AKP) rule, but companies’ debt stocks witnessed a strong surge, making them more vulnerable to currency fluctuations and changes in risk premiums.