External credit debt of the private sector was 158 billion dollars in March
The Central Bank of the Republic of Turkey (CBRT) announced the data on “Evolution of private sector foreign loans” for March 2023.
At the end of March, the total credit debt of the private sector abroad decreased by USD 1.2 billion compared to the end of 2022 and went to USD 158 billion.
When analyzed by maturity, long-term loan debt decreased by $1.7 billion to $149 billion compared to end-2022; short-term loan debt (excluding commercial loans) increased by $530 million to $9 billion.
BANK LOANS AND BONDS DECREASED
If the breakdown by debtor is analyzed, in terms of long-term loan debt, bank indebtedness in the form of loans decreased by USD 603 million compared to the end of the previous year. Loans in the form of bond issues, on the other hand, decreased by USD 1.4 billion to USD 12.5 billion.
In the same period, non-bank financial institutions’ borrowing in the form of loans decreased by USD 32 million, while the stock of bonds decreased by USD 1.2 billion to USD 1.2 billion.
NON-FINANCIAL INSTITUTIONS INCREASE INDEBTEDNESS
In said period, the indebtedness of non-financial corporations in the form of loans increased by USD 1.4 billion, while the stock of bonds increased by USD 13 million to reach USD 9.4 billion.
Regarding short-term loan debt, bank borrowing in the form of loans decreased by US$87 million compared to the end of 2022, reaching US$5 billion; Non-financial corporations’ borrowing in the form of loans increased by US$179 million to US$1.5 billion.
BREAKDOWN BY CREDIT
When the distribution by creditor is analyzed, the debt with private creditors, without bonds, at the end of March increased by USD 985 million compared to the end of the previous year and reached USD 104.3 billion.
Regarding short-term credit debt, debt with private creditors, excluding bonds, increased by USD 419 million compared to the end of the previous year and reached USD 8.3 billion.
MOST DEBTS ARE IN DOLLARS
In terms of currency composition, 60.0 percent of the $149 billion long-term loan debt is in US dollars, 35.6% in euros, 2.0% in Turkish lira and 2.4% in other foreign currencies.
It was found that 33.9 percent of the US$9 billion short-term loan debt consisted of US dollars, 38.0 percent in euros, 22.6 percent in Turkish lira, and 5. 5 percent in other currencies.
TOTAL REIMBURSEMENT IS $39.9 BILLION
Looking at the sector breakdown, at the end of March, 33.7 percent of the total long-term loan debt of $149 billion was made up of financial institutions and 66.3 percent of non-financial institutions.
In the same period, 73.7% of the total short-term loan debt of USD 9 billion corresponded to debt of financial institutions and 26.3% to debt of non-financial institutions.
When analyzing the total credit debt of the private sector abroad according to the remaining maturity at the end of March, it was indicated that the capital repayments to be made within 1 year amounted to USD 39.9 billion in total.