The private sector's foreign debt has exceeded 206 billion dollars.

Private Sector's Foreign Credit Debt Hits Record High

The Central Bank of the Republic of Turkey (CBRT) published its "Developments in Foreign Credit Debt of the Private Sector" report dated August 2023. According to the report, as of September 2023, the total credit debt of the Turkish private sector obtained from abroad reached 206.2 billion dollars, an increase of 9.7 billion dollars compared to the previous quarter.

Long and Short-Term Debt Developments

When the relevant data are examined, the private sector's long-term credit debt increased by 10.3 billion dollars to 196.3 billion dollars, while the short-term credit debt (excluding commercial loans) decreased by 0.6 billion dollars to 9.9 billion dollars. This picture indicates that the private sector is leaning towards long-term borrowing.

Market Reflections

The impact of the increasing credit debt on fluctuations in exchange rates and the economic conditions abroad is being closely monitored. Investors are carefully observing the borrowing strategies of the private sector.