Debt stock increased by TL 408 billion in 4 months

The Treasury and Finance Ministry announced data on the central government’s gross debt stock as of April 30. According to official data, the central government’s stock of gross debt has increased by 408 billion lira since the beginning of the year, from 4 trillion 180 billion lira to 4 trillion 588 billion lira. Rising external borrowing costs coupled with the rising risk premium caused the Treasury to turn in on borrowing.

INTERNAL AND EXTERNAL SYNCHRONIZED

In the first 4 months of the year, the stock of debt in Turkish liras increased by 289 billion liras, while the increase in foreign currency debts was 120 billion liras. Almost half of the 4.6 trillion debt is internal and the other half is external debt.

According to Treasury data, as of January this year, 1.979 billion lire of the central government’s gross debt stock of 4.180 billion lira consisted of internal debt and 2.2 trillion was external debt. In the last 4 months, the external debt stock decreased and the internal debt stock increased due to strong external borrowing conditions and the emphasis on domestic borrowing.

94 BILLION NEW DEBT

Thus, as of April 30, 2 trillion 293 billion of the 4.6 trillion debt stock corresponded to internal debt and 2 trillion 295 billion to external debt. The gap between the external debt and the stock of internal debt was closed and the internal-external balance was equalized.

The Treasury borrowed TL 314 billion from home and TL 94 billion from abroad in a 4-month period. However, the weight of foreign currency debts in the stock continued, albeit at a reduced rate. As of April 30, 37.8 percent of the 4.6 trillion lira debt stock is in TL and 62.2 percent in foreign currency. At the beginning of the year, TL debts were 34.6 percent and foreign currency debts 65.4 percent.

High-risk debts amounted to 929 billion lira

The interest structure of the central government debt stock also changed compared to the beginning of the year. The weight of fixed-rate debts, which are less risky in the face of adverse developments, in the total debt stock decreased from 71.39% to 70.96% in 4 months, while the amount increased by 9.1% at 3 trillion 256 billion. On the other hand, floating-rate debt, which is relatively riskier, increased 16.7 percent from $796 billion to $929 billion in the same period. CPI-indexed debts, on the other hand, increased by TL 4 billion to TL 403 billion.