Short-term external debt in Türkiye reaches USD173.7B at late August
Date
10/17/2024 1:17:34 AM
(MENAFN) As of the end of August, Türkiye's short-term external debt stock amounted to USD173.7 billion, reflecting a 1.4 percent decline compared to the end of 2023, according to the Central bank of the Republic of Türkiye (CBRT). The report highlighted that banks' short-term external debt rose by 11.5 percent, reaching USD76.3 billion, while other sectors experienced a 3.4 percent decrease, bringing their debt down to USD59.3 billion. This shift suggests varying dynamics between the banking sector and other parts of the Economy in managing short-term debt.
A notable aspect of the report was the sharp 40.4 percent increase in short-term foreign exchange loans taken by Turkish banks from abroad, which reached USD17.7 billion by the end of August. Meanwhile, foreign exchange deposits from non-residents in Turkish resident banks grew slightly by 0.3 percent, totaling USD20.1 billion. On the other hand, foreign exchange deposits from non-resident banks fell by 3 percent, also standing at USD20.1 billion, indicating some shifts in foreign capital deposits in the country’s banking sector.
Trade credits linked to imports by other sectors saw a 4.1 percent decline from the end of 2023, standing at USD52.1 billion. In terms of borrowing categories, the public sector's short-term debt—mainly from public banks—rose by 14 percent to USD39.3 billion, while the private sector's short-term debt increased marginally by 1 percent, reaching USD96.3 billion. These changes reflect varying debt management strategies between public and private entities in Türkiye.
The currency composition of Türkiye’s short-term external debt was dominated by the US dollar, accounting for 47.5 percent of the total, followed by the euro at 23.4 percent, the Turkish lira at 13.3 percent, and other currencies making up 15.8 percent. When considering external debt based on remaining maturity, which includes debt due within one year regardless of original terms, the short-term external debt stock reached USD231.2 billion. Of this, USD21.3 billion came from loans taken by resident banks and private sector affiliates from branches and affiliates abroad.
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