External credit debt of the private sector decreased to 154.6 billion dollars in June
The Central Bank of the Republic of Turkey (CBRT) announced the Loan Debt Borrowed from Foreign by the Private Sector for June 2023.
Consequently, at the end of June, the total credit debt of the private sector abroad decreased by USD 3.2 billion compared to the end of 2022 and went to USD 154.6 billion.
When analyzed by maturity, long-term loan debt decreased by $3.9 billion to $145.8 billion compared to the end of 2022; short-term loan debt (excluding commercial loans) increased by USD 676 million to USD 8.8 billion.
THE INDEBTEDNESS OF BANKS IN THE FORM OF CREDIT INCREASED
Looking at the breakdown by borrower, it was observed that banks’ borrowing in the form of loans increased by USD 8 million compared to the end of the previous year, while their debt in the form of bond issues decreased by USD 1.5 billion to USD . 12.3 billion.
In the same period, borrowing by non-bank financial institutions in the form of loans fell by USD 40 million, while the stock of bonds decreased by USD 1.2 billion to USD 1.2 billion.
In that period, borrowing from non-financial corporations in the form of loans fell by USD 315 million, while the stock of bonds fell by USD 902 million to USD 8.6 billion.
Regarding short-term credit debt, bank indebtedness in the form of loans increased by USD 33 million compared to the end of 2022, reaching USD 5.1 billion; Non-financial corporations’ borrowing in the form of loans, on the other hand, increased by USD 495 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 June increased by USD 1.3 billion compared to the end of the previous year and amounted to USD 103.7 billion.
Regarding short-term credit debt, debt with private creditors, excluding bonds, increased by US$198 million compared to the end of the previous year, and amounted to US$7.7 billion.
In terms of foreign currency composition, 59 percent of long-term loan debt of $145.8 billion was in US dollars, 36.4 percent in euros, 1.9 percent in Turkish lira and 2.7 percent in other currencies.
Of the short-term loan debt of $8.8 billion, 39.1 percent was in US dollars, 38.2 percent in euros, 15.6 percent in Turkish lira, and 7.1 percent in other currencies.
65.3 PERCENT DEBT OF NON-FINANCIAL INSTITUTIONS
Analyzing the sectoral breakdown, at the end of June, 34.7 percent of the total debt for long-term loans for USD 145.8 billion corresponded to debt of financial institutions and 65.3 percent to non-financial institutions.
In the same period, 76.1% of the total short-term loan debt of $8.8 billion consisted of debt from financial institutions and 23.9 percent from non-financial institutions.
When the total credit debt of the private sector abroad is analyzed according to the remaining maturity at the end of June, it is observed that the principal repayments to be made within 1 year amount to a total of USD 42,500 million.