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Türkiye Posts Drop in September Short-Term External Debt
(MENAFN) Türkiye’s short-term external liabilities posted a notable decline in September, marking a second consecutive month of easing pressures on the country’s near-term financing outlook, according to fresh data released Tuesday by the Turkish Central Bank.
The Bank reported that the nation’s short-term external debt stock fell to $165.8 billion by the end of September, a 2.1% decrease from August’s $169.8 billion. The contraction underscores a continued reduction in immediate foreign obligations amid shifting global financial conditions.
Sector-specific figures showed broad-based improvements. The banking sector’s short-term external debt slipped 1.2% to $72.8 billion, while other sectors recorded a 1.7% decrease, bringing their total to $65.2 billion. The change reflects ongoing deleveraging efforts as firms respond to currency volatility and evolving credit dynamics.
External borrowing in foreign exchange also declined sharply. Short-term FX loans that domestic banks sourced from abroad were down 10.6% to $9.4 billion, indicating a pullback in reliance on overseas funding. Meanwhile, FX deposits held by non-residents in Turkish banks fell 2.2% to $19.5 billion.
In its statement, the Turkish Central Bank noted: “FX deposits of non-residents (excluding the banking sector) recorded $21 billion, increasing by 0.3%. Additionally, non-residents’ Turkish lira deposits rose 2.5% to $23 billion.”
Trade-related financing experienced mixed movements. Trade credit liabilities attached to foreign trade transactions dropped 2.8% to $59.6 billion, while cash-loan liabilities increased 11.6% to $5.5 billion, hinting at a recalibration in short-term corporate funding patterns.
The currency makeup of the total debt stock remained diversified, consisting of 35.5% US dollars, 26.7% euros, 22.1% Turkish liras, and 15.7% other currencies.
On a remaining-maturity basis—which accounts for all external obligations due within one year—Türkiye’s short-term external debt climbed to $224.8 billion at the end of September, highlighting ongoing rollover needs despite the month’s overall improvement.
The Bank reported that the nation’s short-term external debt stock fell to $165.8 billion by the end of September, a 2.1% decrease from August’s $169.8 billion. The contraction underscores a continued reduction in immediate foreign obligations amid shifting global financial conditions.
Sector-specific figures showed broad-based improvements. The banking sector’s short-term external debt slipped 1.2% to $72.8 billion, while other sectors recorded a 1.7% decrease, bringing their total to $65.2 billion. The change reflects ongoing deleveraging efforts as firms respond to currency volatility and evolving credit dynamics.
External borrowing in foreign exchange also declined sharply. Short-term FX loans that domestic banks sourced from abroad were down 10.6% to $9.4 billion, indicating a pullback in reliance on overseas funding. Meanwhile, FX deposits held by non-residents in Turkish banks fell 2.2% to $19.5 billion.
In its statement, the Turkish Central Bank noted: “FX deposits of non-residents (excluding the banking sector) recorded $21 billion, increasing by 0.3%. Additionally, non-residents’ Turkish lira deposits rose 2.5% to $23 billion.”
Trade-related financing experienced mixed movements. Trade credit liabilities attached to foreign trade transactions dropped 2.8% to $59.6 billion, while cash-loan liabilities increased 11.6% to $5.5 billion, hinting at a recalibration in short-term corporate funding patterns.
The currency makeup of the total debt stock remained diversified, consisting of 35.5% US dollars, 26.7% euros, 22.1% Turkish liras, and 15.7% other currencies.
On a remaining-maturity basis—which accounts for all external obligations due within one year—Türkiye’s short-term external debt climbed to $224.8 billion at the end of September, highlighting ongoing rollover needs despite the month’s overall improvement.
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