Foreign debts of Turkish private sector on the rise

ANKARA - Anadolu Agency

The short-term foreign debt held by Turkey’s private sector increased by $2 billion at the end of June from the end of 2016, the country’s central bank announced on Aug. 16.    
    
Short-term loans – which must be paid within 12 months - reached $16.3 billion in the sector as of June, the Central Bank said in a statement.  

The sector’s long-term foreign debt also increased by $8.7 billion to $210.9 billion during the same period, the Bank added.    
    
“By the end of June, of the total long-term loans amounting to $210.9 billion, 52.1 percent consists of liabilities of financial institutions and 47.9 percent consists of liabilities of non-financial institutions,” it said.        
The Central Bank also revealed that liabilities of financial institutions and non-financial institutions accounted for 81.6 percent and 18.4 percent of the private sector’s short-term foreign debt, respectively.        
“From the borrower’s side, regarding long-term loans, banks’ loan liabilities decreased by $308 million while bond liabilities amounted to $29.8 billion, increasing by $5.4 billion in comparison to the end of 2016,” it added.        

More than 60 percent of Turkey’s private sector long-term debt was held in U.S. dollars, 33.8 percent was in euros, 4.3 percent was in Turkish Liras, and 1.8 percent was in other currencies.        

Almost half of short-term debt was in dollars, 49.1 percent, followed by 30 percent in euros, 20.7 percent in liras and 0.2 percent in other currencies.