Turkish private sector loans declines to USD175.7b in November
Date
1/16/2025 6:58:14 AM
(MENAFN) Türkiye's private sector loans totaled USD175.7 billion as of November 2024, reflecting a decrease of USD14.03 billion compared to the end of 2023 and a drop of USD797 million from October, according to data released by Türkiye’s Central bank on Thursday. The figures highlight a continued downward trend in private sector borrowing as businesses navigate changing economic conditions.
Long-term loans accounted for the majority of the total, standing at USD160 billion, which represents a decline of USD1.6 billion from the previous month. In contrast, short-term loans increased slightly to USD15.7 billion, marking a rise of USD780 million. These trends indicate a shift in borrowing preferences, with short-term loans gaining prominence amid economic adjustments.
The composition of long-term loans revealed that 59.2 percent were denominated in US dollars, while 33.3 percent were in euros, 2.6 percent in Turkish lira, and the remaining 4.9 percent in other currencies. For short-term loans, the US dollar made up 40.6 percent, followed by the Turkish lira at 39.3 percent, the euro at 16.3 percent, and other currencies comprising 3.8 percent. This distribution underscores the reliance on foreign currencies, particularly the US dollar, in private sector financing.
Türkiye’s Central Bank also noted that private sector loans with a remaining maturity of up to one year would require principal repayments totaling USD52.7 billion by the end of November. This highlights the significant repayment obligations faced by businesses within the next year, reflecting the challenges of managing external debt in a fluctuating economic environment.
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