Volume of Turkish private sector’s foreign loans increases

ANKARA – Anadolu Agency

The volume of the Turkish private sector’s outstanding long-term loans received from abroad rose to $220.6 billion as of December 2017, while short-term loans stood at $18.3 billion, according to an official report on Feb. 19.

The Central Bank announced that the private sector’s pending long-term loans from abroad climbed by $18.2 billion while short-term loans - excluding trade credits - increased by $4 billion compared to the end of 2016.

By definition, short-term loans have an original maturity of one year or less, while long-term loans have an original maturity of more than one year.

“As for the sectoral breakdown by the end of December, of the total long-term loans in the $220.6 billion amount, 51.3 percent consists of financial institutions’ liabilities whereas 48.7 percent consists of the liabilities of non-financial institutions,” the Central Bank stated.

“In the same period, of the total short-term loans in the amount of $18.3 billion, 78.4 percent consists of financial institutions’ liabilities, while 21.6 percent consists of non-financial institutions’ liabilities,” it added.

Regarding the currency composition, 58.6 percent of the total long-term loans were U.S. dollar loans, 34.9 percent were euro loans, 4.8 percent were Turkish Lira loans, and 1.7 percent were from other currencies, as noted in the report.

“Of the total short-term loans in the $18.3 billion amount, 47.6 percent consists of U.S. dollars, 29.0 percent consists of euros and 23.4 percent consists of liras. The private sector’s total outstanding loans received from abroad based on a remaining maturity basis point to principal repayments amounting to $70.2 billion for the next 12 months by the end of December,” the Central Bank stated.

The Bank periodically releases data for the private sector’s long and short-term loans received from abroad by gathering details from credit*based forms submitted by resident financial institutions and companies.

The Bank will announce its next scheduled report on March 15.