Local private sector’s debt on rise

ANKARA - Hürriyet Daily News

The private sector’s remaining long-term loans from abroad rose $3.5 billion to $142.8 billion as of May, while its remaining short-term loans grew $5.9 billion to $37.3 billion in comparison to the end of 2012, according to figures released by the Central Bank yesterday.

 The private sector is expected to repay $70 billion next year. The sector’s external debt constitutes two-thirds of Turkey’s external debt, according to the latest figures from the Treasury.

From the borrower’s side, banks’ loan and bond liabilities both increased respectively by $444 million and $3.3 billion, in comparison to the end of 2012. In the same period, non-bank financial institutions’ loans decreased by $403 million, whereas bond liabilities amounted to $1.5 billion.

Non-financial institutions’ loans recorded a decrease of $2.4 billion. As for the sectoral breakdown of the $83.9 billion in liabilities of the non-financial institutions, which account for 58.8 percent of the total, 59.9 percent was borrowed by the services sector, 39.5 percent by the industrial sector and 0.6 percent by the agricultural sector as of the end of May.