External debt from private sector loans decreased to 155.4 billion dollars

The Central Bank of the Republic of Turkey (CBRT) announced the Private Sector Borrowed Foreign Loan Debt for May 2023.

Consequently, at the end of May, the total credit debt of the private sector abroad decreased by USD 2.5 billion compared to the end of 2022 and went to USD 155.4 billion.

When analyzed by maturity, long-term loan debt decreased by $3.3 billion to $146.4 billion compared to end-2022; short-term loan debt (excluding commercial loans) increased by USD 849 million to reach USD 9 billion.

BANK DEBT IN THE FORM OF LOANS DECREASED

When looking at the breakdown by borrower, it was observed that the indebtedness of the banks in the form of loans decreased by USD 339 million compared to the end of the previous year, while their indebtedness in the form of bond issues decreased by USD 1.6 thousand million to USD 12.3 billion.

In the same period, borrowing by non-bank financial institutions in the form of loans fell by USD 60 million, while the stock of bonds fell by USD 1.2 billion to USD 1.2 billion.

In that period, borrowing by non-financial corporations in the form of loans increased by US$546 million, while the stock of bonds decreased by US$916 million to US$8.6 billion.

Regarding short-term credit debt, the indebtedness of banks in the form of loans increased by US$ 98 million compared to the end of 2022, reaching US$ 5.1 billion; Non-financial corporations’ borrowing in the form of loans, on the other hand, increased by USD 492 million to USD 1.6 billion.

59.6 PERCENT US dollars

When the distribution by creditor is analyzed, the debt with private creditors without bonds at the end of May increased by USD 1.1 billion compared to the end of the previous year and amounted to USD 103.5 billion.

Regarding short-term loan debt, debt with private creditors without bonds increased by USD 416 million compared to the end of the previous year and reached USD 8,000 million.

In terms of currency composition, 59.6 percent of the $146.4 billion long-term loan debt is in US dollars, 35.5 percent in euros, 2.3 percent in lira Turkish and 2.6 percent in other foreign currencies made up of species.

Of the $9 billion of short-term loan debt, 36.9 percent were US dollars, 39.3 percent were euros, 17.1 percent were Turkish liras, and 6.7 percent were in other currencies.

65.7 PERCENT DEBT OF NON-FINANCIAL INSTITUTIONS

Analyzing the sectoral breakdown, at the end of May, 34.3 percent of the total long-term loan debt of USD 146.4 billion was debt of financial institutions and 65.7 percent was debt of non-financial institutions .

In the same period, 74.9% of the total short-term loan debt of US$9 billion was made up of financial institutions and 25.1% by debt of non-financial institutions.

When the total credit debt of the private sector abroad is analyzed according to the remaining maturity at the end of May, it is observed that the repayments of principal to be made within 1 year amount to USD 40,900 million.